In March 2020, the US government passed the CARES Act in order to provide financial assistance to businesses struggling with the effects of COVID-19. A large portion of these emergency funds went to the Paycheck Protection Program (PPP), which helps businesses keep employees on payroll during shutdowns. Perry & Associates broke down the CARES ACT in an earlier news article, and you can read that here.
It’s important to know that the PPP is not like the federal stimulus checks that were sent to individual taxpayers. The stimulus checks can be used for any purpose. PPP funds, however, have specific requirements for how they are used.
Tax Accountants in Parkersburg, WV – Necessary or Not?
Many of the most recent inquiries that have come to tax accountants in Parkersburg WV have been in relation to the PPP forgiveness. While some businesses are more than ready to have a local CPA firm handle the intricacies of the forgiveness process, some small businesses may still be hesitant as to whether or not an accountant is necessary for this process.
Our answer: Yes!
Of course we would say that…right? We’re accountants. While that is quite true and we do find an odd amount of enjoyment from things that most of the population abhors, we believe an accountant is necessary beyond just what it means to us.
Because although a tax accountant isn’t required for the PPP, a lot can go wrong when dealing with complicated government legislation.
Parkersburg, WV Accountants Help with PPP Forgiveness
If you’ve received the PPP loan, here are five reasons why you should look for a tax accountant in Parkersburg, WV to help you navigate all PPP-related accounting.
- Make Filing Season a Breeze
Tax season is complicated no matter what, but filing your 2020 taxes will be even trickier if you took government assistance. In order to receive payment forgiveness, you must show that you used funds for payroll-related expenses. A tax accountant will keep your records in order now until filing day.
- Receive Maximum PPP Forgiveness
A tax accountant will make sure you claim every eligible expense this year. You’re busy running your business, and it can be hard to stay up to date on the details of new legislation. For example, did you know that the government passed the Paycheck Protection Flexibility Act that changes the initial terms of the PPP loan? A tax accountant will keep your finances in order and get you the most forgiveness possible despite any changes to the law.
- Keep Track of Multiple Programs
The PPP is not the only assistance program for small businesses struggling during COVID-19. You can take advantage of state and local initiatives, too. Governor Justice recently announced a grant program for West Virginia small businesses. Small businesses can receive up to $5,000 to cover COVID-19-related expenses. Read our recent email for more details on the program. You will need a tax accountant to make sure you stay in compliance with each of these separate programs.
- Avoid Penalties
If you spend PPP funds on items that aren’t eligible for forgiveness, your PPP funds will convert into a traditional loan with a maximum interest rate of 4% and a 10-year repayment window. This applies to honest mistakes as much as it applies to intentional fraud. A tax accountant can protect you from making honest mistakes. When in doubt, trust the experts.
Perry & Associates serve small businesses with tax accountant services in Parkersburg, WV. We put your mind at ease so that you can focus on leading your business through these unprecedented times. Learn more about the accounting service that’s right for you.
Contact us today.