Shelby Systems Support team is getting numerous questions about tracking and reporting for their Paycheck Protection Program loan. Dave Heston and I have checked several large audit firms that specialize in working with churches and other nonprofits. Download Dave Heston’s suggestions below as well as Vonna Laue’s suggestions.

In this PDF, Dave Heston, Shelby Systems’ Consultant, provides insight into setting up your chart of accounts and tracking your PPP loan.

Download Dave’s Document Here

Some important links:

Vonna Laue, CPA provides perspective to methods of recording and tracking CARES Act Paycheck Protection loan.

SBA’s Paycheck Protection Program


Richard Hammer’s article at Church Law & Tax

9 thoughts on “I Got the Government Loan – What do I do Now?”

  1. I am new to using the projects feature. The PPP loan seems like a GREAT place to utilize this! Since this ‘project’ is for such a limited time and applies to payroll, would it be best to:
    1. go into each employee and add the project to code to each of their compensations, or
    2. catch the payroll journal on the back side and add the project code?

    How would the Project Register report be affected for each option?

  2. Nicole, I don’t think using Projects for tracking payroll activity is viable. I am working on a blog to suggest several approaches depending on chart of accounts structure as well as some other variables.

  3. Only if those providing the services are your employees. Watch the SBA’s website for updates to what is and is not allowed. There are several questions still open about what is and is not part of covered expenses.

  4. Hi Mr. Johnson:
    I was thinking, use a Project Code to keep track of all the expense paid with PPP funds; of course having a separate bank account and the liability account.
    Making the payments with our Operating bank account, doing a Journal Entry to transfer the funds from PPP bank account to Operating.
    Assign project code when entering the bills and to salaries in payroll, and to original liability; when printing a Project Register I’ll get a detail of all payments.
    Does this make sense to you?

  5. Yes, you can assign project codes to track specific expenses. If you want to use Project Codes in Payroll, then you will need to update each employee’s payment distribution record for each covered distribution in the pay package. Then, you can go to General Ledger > Reports > Project Register – as you mention above. Then, select one or more project codes to pull your report.
    But, here is a question that you need to have your lender answer: What documentation do you need to show our actually covered payroll amounts?
    I believe the best report for perhaps most lenders would be the PR Source Documents, rather than the project code report. Remember, Source Documents are PDF files that cannot be changed, while users with permissions can change a journal entry’s project code even after finalizing.
    At this point in time, it all depends on your lender’s requirements.

    Hope this helps a little.

  6. Hi Alfred, Thanks this article was helpful. I want to know: How would I go about setting up a new Fund for the PPP loan? I want to create a new Net Asset account that is separate from the General Fund. But I’m running into issues because it appears in my Designated Fund Summary that the General Fund has now been depleted by the amount of my PPP funds received. So far I’ve entered 2 journal entries:
    1. Dr Cash
    Cr PPP Loan
    2. Dr General Fund
    Cr New PPP Net Asset Fund

    I found a similar topic on Aplos, and you can see that their software allows you to choose a Fund at the time you create a Journal Entry, but Shelby doesn’t have this option (at least that I’m aware of). So I’m looking for a work-around.

    Option 2, Step 2, Journal Entry Option —

    Thanks for any help you can offer.

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