Now that you’ve wrapped up your Paycheck Protection Program (PPP) loan application, it’s time to move on to the next step. As you likely noticed, there is a precise list of approved uses for your government-granted funds, so you and your business must keep detailed records of your expenses to avoid needing to pay it all back.
Approved Uses for the PPP Loan Funds
As you get ready to spend your newfound funds, it’s crucial that you utilize them exclusively for approved uses. To make sure you don’t accidentally misuse the money from your PPP loan, we’ve listed out the core spending options for your business:
We’ve listed some of the core spending options for your business:
- Payroll Costs
- Salary, wages, commission, or similar forms of compensation
- Paid vacation, parental, family, medical, or sick leave
- Allowance for dismissal or separation
- Healthcare benefits (including insurance premiums)
- Retirement benefits
- State or local taxes assessed on the compensation of employees
- Other Business Costs
- Interest, but not principal on your mortgage
- Rent
- Utilities
- Interest on any other business debt that was incurred before February 15, 2020
Despite being lumped into only 2 categories, the ways you can safely spend your Paycheck Protection Program (PPP) loan are incredibly diverse, so it’s important to keep them in order. Also if you received any Economic Injury Disaster Loans (EIDL) and/or related Emergency Economic Injury Grant (EEIG), you need to be aware that any crossover in funds could result in you losing out on the chance for total loan forgiveness. As scary as that scenario sounds, there’s a pretty spectacular solution.
Ferrone & Associates PPP Bookkeeping Program
At Ferrone & Associates CPAs, we can assist you with tracking these expenses with the setup and aid of our Online PPP Bookkeeping Program. PPP bookkeeping is the online tool we use to track all of your expenses and stay on top of your PPP loan use. Packed with all manner of exciting features, this service can help your business grow while keeping an eye on your operations. And the best part is—it’s completely affordable.
An impressive expense tracking system is built right into the program.
Once you’ve joined our program, we will assist you in linking the bank account and credit cards for your business, and all of your expenses and income can be automatically categorized. These incredible features mean every time you use the funds from your Paycheck Protection Program (PPP) loan, you know exactly where it’s going, how it’s being used, and how to report on all the details when the time comes. No stress, just easy bookkeeping, that we do for you.
The Financial Features Your Business Needs
The practical applications of this robust bookkeeping system go way beyond monitoring expenses as they relate to the PPP. There’s a laundry list of incredible features designed to make your life easier. Ferrone & Associates CPAs can:
- Put Your Business on the Fast Track to Future Capital Any business owner who has applied for loans, grants, or any other form of financial aid can attest to the red-tape rigamarole that goes along with it. When other small businesses scramble to organize receipts, bills, and other expense details, Ferrone & Associates CPAs can set you up for success. Using our PPP Bookkeeping Program, we can keep and categorize your information with automatic expense tracking and financial reports, which can help you satisfy the requirements of the government or other lenders, as well as identify areas of operational improvement that will help reduce stress during crises like the coronavirus (COVID-19) pandemic.
- Help You Manage Cash Flow PPP Bookkeeping offers highly customizable invoices. These invoices allow you to plug in your logo, business, and billing information, add sales taxes based on the location of your customers, and more. You can also send individualized quotes and estimates that easily convert into invoices with one click. You can also add discounts, handle refunds, and see where your invoices sit, whether they are paid, unpaid, or overdue. At Ferrone & Associates, CPAs, we are highly experienced in implementing and aiding you in the customization of your invoices.
- Give You a Personal Business Bookkeeper For business owners who don’t have the inclination, knowledge, experience, or even the time to mess with bookkeeping, using Ferrone & Associates CPAs will give you access to a real-life, professional CPA. Starting at only $149 per month, you can sync your expenses and offload the hassle to an expert. We can handle the monthly closing of your books, help with your taxes, and be available to answer all of your questions by email or text.
The Right Call for Your Business
Whether it’s to track the relevant expenses for your PPP loan, EIDL, and EEIG or to make sure your customers are using your high-quality invoices to pay you on time, PPP Bookkeeping is an excellent addition to your daily small business setup. Whether you use the basic bookkeeping version or upgrade to other services that we provide, Ferrone & Associates CPAs is capable of taking your business to the next level. Now’s the time to join in, you’ll be glad you did.