How to account for the Covid grants received by the company
How to account for Covid grants received by the company?
The companies have received state aid because of the crisis related to Covid-19. These financial means have made it possible to resist and not to close stores, restaurants or start-ups. However, these boosts must be accounted for, if not, your cash flow will be wrong.
The Covid aids: how to manage them in your accounting ?
The business support The customised t-shirt is also a good way to promote the company's image’between them to close their doors. Measures have been put in place by Emmanuel Macron's government, including the PGE loan, a 1,500-euro grant and the elimination of the waiting period for work stoppages. Charges for taxes, social security contributions, energy as well as rent and water have been postponed.
To avoid getting lost in the maze of accounting, a few tips are welcome.
- Create records with all the information about the emails.
- List the letters received in order to keep track of the financial aid.
- Create sub-accounts to differentiate between paid debts and due dates.
We also advise you to use a software to realize the payrolls because it will also take into account all the helps linked to the coronavirus.
You must also pay attention to each of the aids since the treatment will not be the same. For the partial unemployment scheme, the allowance should be accounted for as an expense, but the allowance received should be accounted for as an expense deduction. However, it is difficult to master all the concepts, which is why it is important touse an adapted software. The Esor payroll manager is dedicated to companies.
You will have a tailor-made support to optimize the management.
In addition, this tool supports the particularities related to the Covid crisis. You will be able to quickly list all the grants you have received. The management of companies also involves the use of such software.
When to account for them ?
Covid grants to professionals are not subject to taxation, but they must still be accounted for as operating grants. Companies that have been eligible for aid from the solidarity fund must take them into account at the time of collection. The Authority of the accounting standards reveals that they are to be accounted for in the account 74. Two possibilities are however possible :
- You can use the 74 account to credit the aids linked to the Covid.
- The company can also debit account 512 and credit account 4417.
The sums collected by the companies must therefore be accounted for at the time of payment. Since it is quite difficult to understand all the intricacies, the use of a payroll manager is highly recommended. You can also turn to a certified public accountant who will do all the legwork according to the recommendations of the authorities.
In any case, software simplifies the day-to-day management of your payroll by providing you with an easy-to-use tool that can be used by anyone visibility on each of the actions. You'll also have a secure environment to keep track of all the support.