May 20th - In This Issue:
BOOKKEEPING FOR STIMULUS FUNDS UNDER
THE  CARES ACT
 

The Cornavirus Aid, Relief, and Economic Security Act (CARES Act) was a broad sweeping legislative initiative to address the COVID-19 Pandemic and all of the areas affected by the event including individual, business and anticipated supply and care shortages.  While most people are familiar with the PPP (Paycheck Protection Program) there are many other areas that will affect cash coming in and out of the small business and all of these situations will require unique accounting treatments.  

Now that the flurry of activity surrounding the disbursement of funds is settling down, we are starting to see some information flowing regarding the bookkeeping and accounting treatment of these situations to ensure all are accurately reported on future income tax returns.  

EIDL's (Economic Injury Disaster Loans) are generally being treated as grants or other income.  The PPP loans are definitely a loan on the Balance Sheet until later applications are completed and forgiveness is guaranteed.  At that time the payroll, rent, mortgage interest and/or utilites will be offset by the loan balance. 

Please let us know if you need additional information.





PPP LOAN FORGIVENESS APPLICATION HAS BEEN RELEASED

Now that you've received the funds, lets get to work on making sure that your loan will be eligible for forgiveness at the end of your 8 week (56-day) period.  







On Friday, May 15th the SBA released the first version of the application that will need to be completed to obtain forgiveness for your PPP loan.  Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels.  Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.  The application form is attached and as you will see, the calculations for determining Full-time Equivalents (FTE) will be critical in the formulas used to determine what percentage of your loan will be forgiven.  

Your 8 week tracking begins on the day that you received the funds or, if you qualify, you may choose an "Alternative Payroll Covered Period".  Documentation verifying the payroll and costs on the Loan Forgiveness Application is extensive and it would be to your benefit to become familiar with the request now.  Click on the link below to download a copy of the application released 5/15/2020.

Your bank will contact you when they are ready to start accepting these applications.  It seems likely that there will be additional clarifications and maybe even some changes for particular industries, but you can view the current application here.


QUICKBOOKS DESTOP 2017 TO BE DISCONTINUED!


Intuit annually retires a version of QuickBooks Desktop. This year, products impacted will include QuickBooks Pro 2017, QuickBooks Premier 2017, QuickBooks Desktop Accountant 2017 and QuickBooks Enterprise Solutions v. 17.

After May 31, access to add-on services (payroll, merchant services, bank & credit card downloads) will be discontinued for QuickBooks Desktop for Windows 2017. If you don't use any of the add-on services in QuickBooks Desktop 2017, your product will continue to work for you. However, you will not be able to subscribe to live technical support or any of the other Intuit services that can be integrated with QuickBooks Desktop.

If you are on the Right Networks cloud platform, the software and licenses will be removed shortly after the discontinuation date.





Cheryl Nance
                               clnconsulting.com

Unlocking the Power of QuickBooks! 
 
Please contact us if your are interested in hearing
 about cloud solutions including QuickBooks Online