The COVID-19 pandemic has upended lives across the country as officials struggle to curb its spread. As cities and states have put restrictions in place to slow infections, businesses of all kinds have felt the financial squeeze.
Certified public accountants have helped guide their clients through this troubling time as they try to navigate the sudden financial strain the pandemic has brought. The CARES Act provided some relief for businesses, dispersing more than $525 billion through the Paycheck Protection Program. As the time comes for businesses to apply for PPP loan forgiveness, CPAs can provide vital assistance to ensure success for their clients. Here are some things to keep in mind while helping clients with PPP loan forgiveness.
Do your clients qualify?
Your client was able to secure a PPP loan early on in the pandemic that helped them stay afloat. But, are they eligible for loan forgiveness now? This is an important question that business owners are counting on their accountant to make clear for them. CPAs need to keep their clients informed of the requirements throughout the loan process to ensure they qualify for full forgiveness. Keeping the right number of employees on the payroll and avoiding big payouts are important factors that will affect a business’s qualification for forgiveness. A CPA can help clients meet this and other requirements before submitting their application.
Completing forgiveness applications
It’s no surprise that PPP loans can be confusing, especially for business owners dealing with a mountain of stress just trying to keep food on the table for themselves and their employees. Having a good CPA on their side is an invaluable aid for business owners during these difficult times.
Alex owns the insurance solutions portfolio for Quantexa globally and his focus is on enabling insurance carriers to adopt innovative technologies to maximize business value from data and analytics. He has extensive experience delivering solutions for global organizations including Allianz, RSA, Zurich and AXA.
Bryan Cannon has over 25 years of investment and financial planning experience. A portion of his clientele includes high net worth and ultra-high net worth individuals. Bryan is the host of Markets ‘N5, a bi-weekly video series focused on analyzing market trends based on technical analysis.
Bryan’s career covers a diverse range of investment and securities experience ranging from financial and estate planning for high and ultra-high net worth families, as well as senior and partner roles with both the big Wall Street firms and smaller boutique firms.
Apart from his commitment to understanding each client’s unique needs and implementing strategies that preserve and protect their assets and wealth, Bryan still finds time to remain active in his community. He serves on several local boards, coaches youth soccer, is a Boy Scout Leader, and volunteers with local charities, including assisting the Charlotte Men’s Shelter. In his downtime, he enjoys participating in various fitness and sports activities and enjoying quality time with his family mountain biking and whitewater paddling at the US National Whitewater Center located in Charlotte, North Carolina.
Bryan holds a B.S. in communications and business. In 2018, he became a 5 Star Wealth Manager Award winner.
Candice is a managing director in the Global Client Business within Goldman Sachs Asset Management, and serves as global head of the Strategic Advisory Solutions team. She focuses on global capital market research, macroeconomic strategy, portfolio construction and client engagement.
Keeping track of expenses and documentation after the loan is received and getting the correct paperwork put together for the forgiveness application is essential. Make sure clients meet deadlines, turn in the correct forms, and stay in touch with their lender throughout the application process. Give clients the confidence that their application is thorough and accurate to give them the best chance of their loan being fully forgiven.
Staying on top of changes
Of course, the confusion that has occurred with the Paycheck Protection Program doesn’t belong just to borrowers. Some CPAs may find they have a few questions along the way as well. Lawmakers hurried to get financial assistance to cash-strapped businesses when COVID-19 shut down the country; there were bound to be a few snags and revisions to the program. The federal government has put out notices and questions and answers to clear up issues along the way, and changes have been made to the program as the pandemic raged on through the year. It’s up to CPAs to stay apprised of these changes and updates to FAQs so they can properly assist clients. There are still more questions to be answered, including tax issues, so this is a continual process.
CPAs can provide valuable assistance to their clients who are doing their best to stay in business in the midst of a pandemic. Stay informed about the PPP loan forgiveness process and give clients a reliable adviser in their corner to guide them through the process.
