The COVID-19 pandemic has changed lives across the country as authorities fight to curb its spread. As cities and states put restrictions in place to slow infections, businesses of all kinds have felt the financial pressure.
Chartered accountants have helped their clients through this troubled time as they attempt to overcome the sudden financial pressure that the pandemic has brought. The CARES Act has brought some relief to businesses, dispersing more than $ 525 billion through the Paycheck Protection Program. While the time has come for businesses to apply for a PPP loan forgiveness, CPAs can provide vital assistance to ensure the success of their clients. Here are some points to keep in mind while helping clients get PPP loan rebate.
Are your customers eligible?
Your client was able to secure a PPP loan early in the pandemic which helped them stay afloat. But, are they eligible for a loan forgiveness now? This is an important question that business owners rely on their accountant to explain to them clearly. CPAs should keep their clients informed of the requirements throughout the loan process to ensure they are eligible for a full discount. Keeping the right number of employees on the payroll and avoiding large payments are important factors that will affect a business’s qualification for forgiveness. A CPA Can Help Clients Answer This And Other Questions conditions before submitting their application.
Complete pardon requests
It’s no surprise that PPP loans can be confusing, especially for business owners facing a mountain of stress just trying to keep food on the table for themselves and their employees. Having a good CPA by your side is an invaluable help for business owners in these difficult times.
Expense tracking and Documentation Once the loan is received, it is essential to gather the correct documents for the forgiveness request. Make sure clients meet deadlines, submit the correct forms, and stay in touch with their lender throughout the application process. Give clients the assurance that their application is complete and accurate to give them the best chance of having their loan canceled entirely.
Stay on top of changes
Of course, the confusion that has arisen with the paycheck protection program is not just with borrowers. Some CPAs may also ask themselves a few questions along the way. Lawmakers rushed to get financial help for cash-strapped businesses when COVID-19 shut down the country; there were bound to be some hitches and revisions to the program. The federal government has issued notices and questions and answers to address issues along the way, and changes were brought into the program as the pandemic raged throughout the year. It is the responsibility of CPAs to keep abreast of these changes and updates. Faq so that they can properly help customers. There are still other questions that need to be answered, including tax questions, so this is an ongoing process.
CPAs can provide invaluable assistance to their clients who are doing their best to stay in business in the midst of a pandemic. Stay on top of the PPP loan forgiveness process and provide clients with a trusted advisor in their corner to guide them through the process.