The SBA's Economic Injury Disaster Loan (EIDL) is a special loan backed by the government that offers an unusually low interest rate.
One section of the EIDL agreement, "Books and Records," outlines your bookkeeping and recordkeeping responsibilities, such as maintaining accurate books for the most recent five years of operation.
Here are some of the conditions of the EIDL loan agreement:
An accurate and up-to-date set of books will allow the SBA (and you!) to get a clear look at the financial health of your business, using financial documents such as your balance sheet and income statement.
You'll need to track and categorize all your business expenses. Receipts and invoices should be digitally filed and recorded. It can take some time, but it's well worth the effort to be able to see where your money is going and ensure you'll be able to get the most of your eligible deductions come tax season.
Our Bookkeeping Basics guide can help you with the basics, and includes a free downloadable PDF you can reference.
For SBA-ready books, you should have completed financials for the last five years of your business: a fully completed and accurate ledger of transactions, list of accounts, an income statement, and balance sheet.
That will put you in the best possible position if the SBA chooses to audit your business. Plus, preparing regular financial statements is a recommended best practice for understanding how your business is performing. These documents also allow your CPA or accountant to prepare an accurate tax return.
We are offering free 1 Month Basic Bookkeeping to all new customers so you can experience Accracy's seemless and professional services.
As long as you use them for different purposes, you can use the PPP and EIDL loans at the same time. Here's how.
Sales tax is ......
If you file your taxes after the due date, you can expect IRS penalties. Late-to-file and late-to-pay penalties can total up to 25% of your estimated tax bill.
