CALL US: (847) 382 - 3206

Documentation for the PPP, EIDL and HHS Stimulus

04/17/2020

Once you have the “free” money from the government, it is your responsibility to demonstrate that it was used for the intended purposes.  If you don’t, the money will no longer be free.  Worse yet, if you are found to act egregiously with the money, there may be penalties.  Here’s what NOT to do with the money once you receive it:

·        Do not pay yourselves bonuses                 

·        Do not pay down debt in excess of normal debt payments

·        Do not build out your office or buy equipment

 

In short, over the few months you will be subject to scrutiny by the government, it is best to run the practice as normally as possible without any extra spending.

 

With this email is a sample (oversimplified) worksheet illustrating how we will account for these programs.  The objective of this worksheet is to demonstrate your compliance with each one.   The worksheet’s green column reflects the entirety of your practice during the sample period.  This will not be shared with the government but will enable us to reconcile all the entries with the totals for the practice to ensure that nothing is missed.  This will mirror your accounting system.    Each of the other columns is a subset of the green column and demonstrates how the funds are used exclusively for their intended purpose. 

 

The “Document Description” and “Payment Dates” columns refer to specific reports and documents you will be collecting and putting in separate folders for each program – either physical or virtual folders.  If you do this, you will be collecting the information needed for reporting and auditing purposes as you go.  We recommend you not add expense categories to your accounting system as this will complicate your system for years to come and provide little additional benefit over the folders. 

 

Whether you choose to open separate bank accounts for the money or not, you will need to produce information just like this.  For this reason, we are not recommending you open separate bank accounts for the government money.  Multiple bank accounts bring their own set of complexities. 

 

We highly recommend you have us assist you in the process.  Our cost can be minimized by having you collect the documents and provide us with the folders.  We will then in turn produce a worksheet like the one enclosed for your practice that ties to your accounting and documentation.  We will also perform the calculations necessary to include the expenditures per government regulations.  Two other areas in which we can help:

 

·        Documenting and reporting the loss of receipts for your practice

·        Documenting and reporting any coronavirus projects and making sure there is no duplication with the other programs.

 

As you are no doubt aware, the situation with these programs is highly dynamic with new information coming out daily.  As more information arrives to help you refine which expenses qualify and which ones don’t, we’ll be passing that along in a future communication.

 

 

 

Finally, for our dentist clients, there will be another communication soon regarding your specific circumstances with these programs.

Back to PBM Update

leave us a review on