What You Need to Know about Disaster Relief for Covid-19

 
On April 1, Perry & Associates reported that the president officially signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act into law. We responded quickly and created a special COVID response group. Our expert accountants are ready to answer your accounting questions regarding the financial relief package.
 
Since creating the COVID response group, we have received hundreds of questions about the CARES Act. We are working around the clock to provide accurate and thorough answers.
However, we understand many of you need to access funds quickly. That’s why we’ve curated six, frequently asked SBA Disaster Loan questions so that you can make the right choices for your business as soon as possible.
 

SBA Disaster Loans – FAQs

 

Am I eligible for a coronavirus SBA disaster loan?

You may apply for CARES Act funds if your business has fewer than 500 workers. This includes corporations, non-profits, sole proprietorships, contractors, and freelancers. There is assistance for larger businesses, but those programs fall outside the scope of this article.
 

Are all SBA disaster loans the same?

No. There are a few distinct programs to the CARES Act. The two most popular programs are the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL).
 

• The EIDL. These loans are made directly through the SBA, not local banks. After applying online, you may receive up to a $10,000 advance that will not have to be repaid whether or not you qualify for an additional loan. Additional loans can be maxed at $2 million and loans up to $200,000 don’t require personal collateral. Finally, an EIDL loan can’t go toward other loans or debt obligations. Apply here.

 

• The PPP. These are 100% federally backed loans used to cover payroll-related expenses through June 30th. These loans will be forgiven if businesses retain employees at compensation levels similar to pre-crisis levels. Loans are made through banks and third-party lenders. For more information, see our PPP section below.

 

When will I receive my relief funds?

For EIDL advances up to $10,000, you could see that deposit within three days of your application. For loans beyond the initial $10,000, most sites claim turnaround time is 2-3 weeks. However, many businesses have seen delays longer than that. Expect to wait a week or two longer than promised before funds are approved and delivered. This applies to PPP loans, too. This situation is ongoing and may resolve at any time.
 

Paycheck Protection Program Questions

 

What information do I need to apply for a PPP loan?

These SBA disaster loans are provided through local lenders and backed by the federal government. Contact your bank or SBA representative to submit an application. You will need to include documentation stating the total number of employees on payroll along with their 2019 salaries and compensation levels. Also, submit verification for mortgages and utility payments.
 

Once I receive my PPP SBA disaster loan, are there restrictions on how I use it?

Yes. As you might expect, the PPP requires borrowers to use funds toward payroll-related costs. Eligible costs include: 

• Payroll administrative fees 
• Health-care benefits
• Employee salaries, commissions, or similar compensation
• Rent and/or mortgage payments
• Utilities
• Interest on debts taken on before the crisis

There are also salary eligibility restrictions. For example, loans will not be forgiven if they go toward any compensation over $100,000 per employee or compensated employees live outside the USA.
 

What happens if my loans aren’t forgiven?

If PPP funds don’t meet eligibility requirements, they might not be forgiven. Loans can only be forgiven if they are used to cover payroll expenses within the eight-week disaster window following the start of the loan. Businesses must also retain employees at salary levels comparable to compensation before the crisis.
If your business does not meet forgiveness criteria, then the funds will remain a traditional loan with a maximum interest rate of 4% and a 10-year repayment window. Loan fees or prepayment penalties will not be applied.
Thank you for reading through our SBA disaster loan FAQ. We hope you’re able to access the funds your business needs.
However, being approved for an SBA disaster loan is just the first step. You will need to track your expenses so that you can prove loan forgiveness eligibility. Together, we will make it through this unprecedented crisis.
 

Talk to one of our accounting experts, and let us set you up for success.

Call us at (740) 373-0056 or contact us online.

5 Essential Things for Tax Preparation Services in Cambridge, OH

 
One of the challenges of tax preparation each year is remembering to bring the necessary documents that will allow your tax preparer to properly file your federal and state taxes. Inevitably, progress will pause when some important document is missing that you must hunt down. This year, come prepared with everything your tax preparation services in Cambridge, OH may need. 
 
We’ve provided a list of 5 items to make sure you have at your initial tax consultation. These may seem simple, but you’d be surprised how many times some of these are forgotten.
 

Headed in for Cambridge Tax Preparation Services? Don’t Forget These 5 Things

• Personal Identification Information

 
This may seem like a given, but proof of identification can easily slip your mind when your focus is consumed with all of your tax papers! You will need Social Security Numbers for yourself, your spouse (if married), and anyone else you are claiming as a dependent on your taxes. You will also need all of their dates of birth, street addresses, and your driver’s license(s). 

• All Income Statements

 
These are the most important documents to bring to any meeting with a local tax preparation service. While everyone remembers the W-2s, there are many other sources of income that may need to be reported.

• W-2s from all employers that you, and your spouse, worked for during the past tax year
• 1099-MISC forms if you or your spouse conducted contract work earning more than $600 in the past tax year
• Interest income, dividend income, any income from selling stocks or bonds, and any foreign investment income for the past tax year
• Rental property income for the past tax year
• Any other miscellaneous income from prizes, gambling, jury duty, medical savings accounts etc.

 

• Listing and Documentation of Expenses

 
You certainly will not want to forget the evidence of any of these! Also known as “itemized deductions”, these can significantly reduce your tax responsibility. 

• Charitable Donations
• Education Expenses
• Property Tax
• Real Estate Tax and Mortgage Interest
• Medical Expenses
• Unreimbursed job-related expenses
• Job search or moving expenses
• IRA Contributions
• Childcare Costs

 

• Previous Returns

 
Bringing returns from previous years can help your tax preparer in Cambridge, OH get your taxes done smoothly and as quickly as possible.This will help your accountant access information that they need in order to make certain calculations without the need to call you multiple times. 
 

• Bank Account Information

 
Finally, if you want your refund to be directly deposited to your bank account, you will need your account number and routing number to give to your accountant.
 

Tax Preparation Services in Cambridge, OH

 
Nervous that you are still forgetting something? We can help you walk through the entire process. For trustworthy tax preparation services in Cambridge, OH, contact Perry and Associates at one of our five different locations. We strive to become partners in our clients’ financial lives. For both present needs and future goals, we are here for you!
 
313 Second St.
Marietta, OH 45750
Office: (740) 373-0056
 
1907 Grand Central Avenue
Vienna, WV  26105
Office: (304) 422-2203
 
150 West Main Street, Suite A
St. Clairsville, OH 43950
Office: (740) 695-1569
 
1310 Market St. Suite 300
Wheeling, WV 26003
Office: (304) 232-1358
 
749 Wheeling Ave, Suite 300
Cambridge, OH 43725
Office: (740) 435-3417

Does a Hustling Entrepreneur Really Need Professional Accounting Services?

You learn. You hustle. You sacrifice. And you do it all over again and again.
As a small business owner in the beginning stages of your startup, so many responsibilities scream for your attention, time and money that it’s hard to know how best to allocate your resources. Perhaps one of the most challenging resources to properly control in the beginning is your money. Most small business owners will purpose to do more work in order to save more money. 
Some of this time may be a reasonable trade-off when looking at a cost vs benefit analysis – painting your office instead of hiring it out, writing your own business plan, handling the marketing yourself. 

Business Professionals on Paying for Accounting Services

But distinct challenges can come when you choose to do for yourself things that will cost you greatly in the future. Business experts agree that professional accounting services shouldn’t be one of the areas where you take the do-it-yourself route. But perhaps you don’t quite see the value that accounting services can bring for your small business startup when you don’t have extensive business bookkeeping to track. 
Here are just a few of the ways that professional accounting services can help your startup gain stability even in the beginning years of uncertainty.
 
Determine Your Entity
Accounting services can help you in the selection and set up of your entity structure. It’s important to choose the entity that will best fit your business’s needs, both for current and future goals. An accounting firm will take your goals, industry and business model into consideration, finding you the entity structure that will provide the best legal protection and greatest tax benefits. 
Analyze Your Business Plan
An accounting firm can provide an expert analysis of the financial structure of your business plan, pointing out areas where you may have unrealistic expectations or faulty numbers. 
Train You in Accounting Procedures
An accountant can help you determine what accounting software would be the best fit for your business, while also providing advice for how to keep your affairs legal, organized and profitable.
Make Sure You are Compliant with Government Regulations
It’s important that your accounting procedures follow government regulations from the very start. Depending on the type of entity structure, you may need to keep specific records, have shareholder meetings and keep minutes for the meetings. A professional providing your accounting services can advise you on all the proper legal proceedings. 
The way you pay your employees and/or subcontractors must also follow guidelines. Not to mention your quarterly estimated tax payments that should be filed in order to prevent penalties and fees. 

Don’t Skimp on Professional Accounting Services

While the temptation is to rely on google and your own grit to determine the direction for all of these financial aspects, one small mistake can cost years of headache down the road. The wise entrepreneur will let professionals guide their financial affairs, leaving their time for growing and improving the business. 
With proper accounting services, your business can be positioned to move forward strategically, ready for whatever growth and opportunities come your way. 
 

If you’re ready to partner with a professional small business accountant that can guide and advise your business steps, call Perry & Associates today. 

740.373.0056