How to Enter PPP and EIDL into Quickbooks

We are getting a lot of questions from people managing their own books who are trying to figure out how to enter PPP and EIDL grants and EIDL loans.

The EIDL grant should be classified as Other Income. The PPP loan is either Other Income if you expect it to be forgiven (most cases) or a Long Term Liability if you expect it to have to pay it back. The SBA EIDL loan should always be recorded as a Long Term Liability.

Recording the grant or PPP loans as Other Income in Quickbooks Online is easy

(This is similar to Quickbooks desktop but the screens will look different).

Grants count as income, but they are not a part of your normal business. So the best way to handle them is to create an “Other Income” account and use it to categorize your income. This separates this income from your normal business activities.

Start by creating the Other Income account

Navigate to your chart of accounts by selecting accounts on the left-hand side, and choose Chart of Accounts.

That will open up the Chart of Accounts screen with the list of all of your accounts. In the top right click “new” to create a new account.

That will open the new account screen, which should look something like the screenshot below. Fill in the form with this information:

  • Account Type: choose Other Income
  • Detail Type: Other Miscellaneous Income
  • For name and description use names and descriptions that make sense for you.
  • Click on Save and Close.

When you download the transaction from the bank it will probably be from SBA Treas with some additional description behind it. Open the transaction and choose the account you created from the list.

Creating a liability account to record loans in Quickbooks Online

Navigate to your chart of accounts by selecting accounts on the left-hand side, and choose Chart of Accounts:

That will open up the Chart of Accounts screen with the list of all of your accounts. In the top right click “new” to create a new account.

That will open the new account screen, which should look something like the screenshot below. Fill in the form with this information:

  • Account Type: choose Long Term Liabilities,
  • Detail Type: choose Notes Payable
  • For name and description use names and descriptions that make sense for you.
  • Start tracking today
  • Set the balance to zero.
  • Click on Save and Close.

Back in your bank register, categorize the transaction using the account you just created:

Jeff Coyle, CPA

Jeff Coyle, CPA, Partner of Rosenberg Chesnov, has been with the firm since 2015. He joined the firm after 20 years of business and accounting experience where he learned the value of accurate reporting, using financial information as a basis for good business decisions and the importance of accounting for management.

He is a diligent financial professional, able to manage the details and turn them into relevant business leading information. He has a strong financial background in construction, technology, consulting services and risk management. He also knows what it takes to create organizations having built teams, grown companies and designed processes for financial analysis and reporting.

His business experience includes:

Creating and preparing financial reporting, budgeting and forecasting.
Planning and preparation of GAAP and other basis financial statements.
Providing insight on financial results and providing advice based on those results.

Jeff also has a long history of helping individuals manage their taxes and plan their finances including:

Income tax planning and strategy.
Filing quarterly and annual taxes.
Audit support.
General financial and planning advice.
Prior to joining the firm in 2015, Jeff was in the private sector where he held senior financial and management positions including Controller and Chief Financial Officer. He has experience across industries, including construction, technology and professional services which gives him a deep understanding of business.

Jeff graduated from Montclair State University, he is a CPA and member of the American Institute of Certified Public Accountants, New York State Society of Certified Public Accountants and New Jersey State Society of Public Accountants.

Jody H. Chesnov, CPA

Jody H. Chesnov, CPA, Managing Partner of Rosenberg Chesnov, has been with the firm since 2004.  After a career of public accounting and general management, Jody knows the value of good financials.  Clarity, decision making, and strategy all start with the facts – Jody has been revealing the facts and turning them into good business results for more than three decades.

He takes a pragmatic approach to accounting, finance and business. His work has supported many companies on their path to growth, including helping them find investors, manage scaling and overcome hurdles.  His experience and passion for business reach beyond accounting and he helps businesses focus on what the numbers mean organizationally, operationally and financially.

He has a particular expertise in early-stage growth companies.  His strengths lie in cutting through the noise to come up with useful, out of the box, solutions that support clients in building their businesses and realizing their larger visions.

Prior to joining the firm in 2004, Jody was in the private sector where he held senior financial and management positions including General Manager, Chief Financial Officer and Controller.  He has experience across industries, which gives him a deep understanding of business.

Jody graduated with a BBA in Accounting from Baruch College, he is a CPA and member of the American Institute of Certified Public Accountants and New York State Society of Certified Public Accountants.

In addition to delivering above and beyond accounting results, Jody is a member of the NYSCPA’s Emerging Tech Entrepreneurial Committee (ETEC), Private Equity and Venture Capital Committee and Family Office Committee.  

He is an angel investor through the Westchester Angels, and has served as an advisor for many startup companies and as a mentor through the Founders Institute.

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