PPP Loan Forgiveness: Recording It in QuickBooks Made Easy
Businesses can record PPP loan forgiveness in QuickBooks without much hassle. Once forgiveness is granted, you’ll need to reduce your loan liability. Create a journal entry that debits the PPP loan account and credits an income category, often “Other Income.” This clears the liability while properly reflecting the forgiven amount in your books. QuickBooks allows you to run accurate reports afterward, showing your financial relief clearly. Because classification can affect taxes and compliance, consulting with your accountant ensures you record forgiveness correctly for your unique situation.