As we head into year-end there are a lot of questions regarding accounting for the Paycheck Protection Program (PPP) proceeds. There have been many articles and discussions around the tax treatment of PPP but we should also keep in mind the book accounting treatment for PPP proceeds. The Journal of Accountancy published an article about the book treatment back in June which explains some options for the book treatment of PPP proceeds. These options should be considered for both for-profit and not-for-profit organizations.
The option your organization ultimately chooses to account for PPP proceeds will impact how the end users (banks, funding sources, and insurance companies, among other users of your financial statements) evaluate your organization’s finances. Please read the article, as linked above, for some accounting options and feel free to contact us to discuss best practices for your organization.
Remember to follow us on LinkedIn to stay up-to-date on all of our posts!
Remember to follow us on LinkedIn to stay up-to-date on all of our posts!
RSS Feed