Schiff Dental Clients Update , Monday, May 11, 2020 at 6 PM EST

SBA / US Treasury Guidance – update – PPP Loans
We are still waiting for the guidance on, what are the rules on how to properly spend your PPP funds? As soon as they are released, we will summarize them for you.

Accounting for your PPP Loan Proceeds – in QuickBooks / Peachtree / MYOB

We at Schiff have come up with a procedure to account for the PPP funds used for qualified expenses.

How to account for your PPP loan funds in your accounting software?

  1. Setup new General Ledger liability account – PPP loan payable – code your deposit of funds to this account—- Entry for initial deposit  is  Debit Cash, Credit PPP loan payable
  2. Code all disbursements to this PPP Loan Payable account —-(Entry for each PPP payment is Debit PPP loan payable, Credit Cash)
    • Payroll – Gross wages for each employee and SUTA tax (FICA and FUTA should be coded to Payroll tax expense account) , please recall that if an Associate is on Payroll, their Payroll is limited to $1,923 a week.
    • For Sole member LLC (Schedule C) – Draws – Code $1,923 per week for owner , Debit the PPP Loan Payable, Credit Cash
    • Health insurance – employees only – charged against the PPP Loan Payable as a Debit, Credit Cash
    • 401k match for employees only if you have been funding the match per payroll – charge to the PPP Loan Payable as a Debit , Credit Cash
    • Rent or Interest on Mortgage – Please charge these disbursements against the PPP Loan Payable Account as a Debit, Credit Cash . Please make sure you have a copy of your current lease
    • Utilities – Please charge these disbursements against the PPP Loan Payable Account as a Debit, Credit Cash – Utilities include >> Gas & electric, water, internet access and telephoneWhen the PPP loan account zeros out, you have spent all PPP funds. The gross wages, staff health, 401k match & SUTA paid from this PPP loan account should total to 75% or greater than the original PPP loan amount. When the account is zero you should return to your regular accounting entries.
  3. Keep copies of invoices and/or cancelled check in a separate folder so we can render an “accounting” to the bank at the end of the 8-week period.

Please reach out to your Schiff Team member if you need help setting this up within your Accounting Software

COVID-19 & Dentistry: Teledentistry, Billing for PPE, & In-practice Virus Testing

Below, is an excellent webinar (tomorrow at 5 PM EST) on the above subject matters, to include, “How to bill for PPE”? We are getting a lot of calls and e-mail inquiries on this very subject. As many of you know, Dr Charles Blair and I have been great friends for over 20 plus years. Dr Blair always shares beyond the attendees expectations. I would highly encourage you to register for this webinar.

Beyond the challenges associated with ramping up a practice during the COVID-19 recovery phase, dental offices are also faced with navigating new coding practices. Join Dr. Charles Blair, dentistry’s leading authority on insurance coding strategies, fee positioning and strategic planning, for a critical update on what practices can put into place for a stronger comeback. Dr. Blair will discuss:

  • Increased PPE costs and what can be done to offset this
  • In-practice virus testing including the required waiver certificate and the two new codes that will be effective as of June 1
  • Coding for teledentistry

If you cannot make the live webinar, be sure to register anyway and we’ll send you the recording afterward.