Many businesses have been able to apply and receive forgiveness on their PPP loans and now the question that I’m hearing all the time is – “How do I record the forgiveness and get rid of the loan in Quickbooks?” That’s a valid question, and if you are wondering the same thing, stick around because I will show you step-by-step how to do this in Quickbooks Online.
But, before I do that, I want to make it clear that this should only be done AFTER you have applied for forgiveness with your bank AND received a document showing the total amount that was forgiven. If you have not received that document yet, then you need to wait to complete these steps. I would recommend reaching out to your lender and ask them to send you a document. Every lender’s form will look a little different, but there should be some type of notice or letter given to you, and it can be emailed, that’s fine, but there should be something given to you that shows what your original loan amount was and what the forgiven amount is. So once you have received the document, you are in the clear to write that loan off!
One last thing before you watch my YouTube video on how to record PPP forgiveness in Quickbooks Online. This process is going to work if your loan was originally recorded in Quickbooks as a liability. If you recorded it as income or something else, the process is not going to look exactly the same, so feel free to comment, maybe tell me how you did it, and see if I can provide some assistance. I will see how I can help you further! But the process that I show you in my YouTube video is going to be for loans that were originally entered into Quickbooks as a liability.
So, let’s dive in! To watch me show you how to record your PPP forgiveness in Quickbooks, click here.
If all of this seems a bit overwhelming and you are not sure where to even begin when it comes to Quickbooks Online, bookkeeping, or taxes, I would love to chat with you! Make sure to check out our website and see how we can best serve you and your business.