When it comes to finding the ultimate accounting tool, the Zoho Finance Suite delivers. When integrated, Zoho Books, Invoice, and Subscription make accounting, bookkeeping, and reporting a breeze.
Zoho Finance has so many features that Quickbooks and other digital accounting programs don’t that it can be overwhelming to pinpoint what tools you need. Here at KDG, our goal is to make using the Zoho Finance Suite as simple and seamless as possible and we love helping clients like you make the most of its features, so we’ll be updating our site regularly with the latest tips and tricks.
If you’re a small business that received a PPP loan from the federal government this year, our first Zoho Finance tip is vital: here’s how you can record your PPP loan in Zoho Books.
The Paycheck Protection Program started in April 2020 after the nation shut down due to the COVID-19 pandemic. The Small Business Administration invited U.S. small businesses to apply for the 1% p.a. fixed interest rate loan to help cover wages, rent or mortgage payments, and utilities. Hundreds of billions of dollars were allocated toward this program and businesses across the country took advantage of it. The loans not only help business owners in a desperate time of need, but they could be forgiven if they met certain criteria.
PPP forgiveness relies on three rules. That you:
- Utilize at least 75% of the borrowed amount for employee wages, hiring, etc.
- Spend it on the eligible expenses like wages, monthly rent, mortgage, and utilities within the first eight weeks.
- Keep all expense receipts
Zoho even put together a handy online calculator to help you determine your forgiveness amount.
Staying on top of your expenses and reporting is key to getting loan forgiveness from the government. This is where Zoho Books helps! You can record and track your funds and expenses, making sure you have everything you need to apply for forgiveness.
What about when the loan ceases to be a loan and is forgiven? You can easily transfer your loan amount from your liability account to an Income account using the Manual Journal feature.
We understand that you’re navigating a lot right now! Between PPE and PPP, there’s a lot on your mind. Our Zoho Finance and accounting experts at KDG are glad to take at least one worry off your mind: if you need help making sense of Zoho Books, customizing your books instance, or simply managing some of your back-office bookkeeping tasks, reach out to us today. We’ll be glad to help you make sense of your financial future.