[GNC] Anyone using GnuCash to account for US PPP or EIDL funds?

[Tim Quinn]

I realize some more information might be useful.

Briefly (and oversimplified), both PPP and EIDL are US government programs which provide money from the government to a small business. 

PPP funds are a loan, some or all of which can be forgiven (not need to be paid back) and is expressly not taxable as income, according to the interpretations of the law I have read.

In my case, the EIDL funds are actually a grant, not a loan, and the tax treatment is a little ambiguous currently.

But I’m actually less concerned with the tax treatment currently than the following...

I want to be very explicit in my accounting to show what expenses we are using the government funds for. That part I’m not quite sure the best way to handle. Normally we write checks to pay expenses, so I debit the checking account. The government funds are already in the business checking account, so I am trying to choose the best way to identify that specific expenses — paid out of the checking account — are linked to the PPP or EIDL money.

I’d appreciate hearing from anyone who is actually dealing with these same issues or has advice how to handle this.

Thanks again.

- Tim




> On May 23, 2020, at 7:41 AM, Tim Quinn <tim.quinn at att.net> wrote:
> 
> I’ve been reading various non-GC articles and blog postings about how a small business might account for PPP or EIDL funding and expenses.
> 
> I’ve looked for but have not found any GnuCash list posting about this.
> 
> I’m curious if anyone is using GC for this and, if so, how you’ve chosen to do so? 
> 
> Or, even if you’re not doing this yourself, what advice you might have for those of us who will try?
> 
> Thanks in advance.
> 
> - Tim
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