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Should we open a new bank account to track PPP funds?

CaliforniaConstruction AccountingCoronavirusStimulus

Should we consider opening new bank accounts for the PPP loan? This would help us keep these funds separate. The plan would be to deposit the loan funds into the new account, to get new checks for payroll/direct deposit payroll checks from the new account, etc. An alternative could be to move the money from the new account into our normal account each week for payroll. What is the best practice here, and what should we be concerned about?

4 replies

May 20, 2020
Thank you for your question. The most important thing is to track as much information as possible. This should be your primary concern. When it comes to the PPP loan, the more records you track, the better off your business will be when it comes to loan forgiveness. You want to make sure you separate your business revenue and PPP loan proceeds. With remote work and limited bank staff, it may be difficult to open a new bank account quickly. If you are able to do so, keeping PPP funds in a separate bank account is a great way to keep PPP funds separated from business revenues and track your PPP expenses. If you are unable to open up a new account or do not want to open up a new bank account, you should fully utilize your accounting software to track and separate PPP proceeds and expenses. There are free resources online specifically outlining best PPP practices for each accounting software.
Apr 9, 2021
I receive my revenue for my business through paypal and have statements for it.. but can i open a new bank account and use it to receive my ppp loan or does it have to be the bank i receive my revenue from
Apr 25, 2021
i think its a crock that the feds are running on laws and bi laws set to take out multi million dollar bullshit artists like the Clintons and Biedens but have decided to tear through thr lives of the real working folks who are simply trying to compinsate for the losses brought on by the china virus and the left.Were and the hell do some of the brightest heads around think they get there electicity in there new gym at or tires for that car thay ride around in at? It is not the mass numbers of new potential americans flooding in with who knows what motives that are trained to do these jobs yet so eliminating the pros that are willing to work sometimes for chump chamge and lately for less has no merrit.These feds mangleing the lives of folks already on a brink is stupid and careless.Stick your ppp were your least likely to feel it,right in the trash where it belongs
May 3, 2021
Same. Where you able to get this figured out? Im having the same issue. My bank is small and unable to verify online. I created a brand new chase to keep track of ppp better and now It feels like i’ve been stonewalled. The new account doesnt suffice for the Feb2020 rule.

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