How to account for Covid aid received by the company ?
Companies received state aid due to the Covid-19 crisis. These financial means have allowed you to resist and not to close your stores, restaurants or start-ups. However, these nudges must be accounted for, if this is not the case, your cash flow will be wrong.
The Covid aids: how to manage them in its accounting ?
The business support
To avoid getting lost in the maze of accounting, some tips are welcome.
- Create files with all the information concerning the emails.
- List the letters received in order to keep track of these financial aids.
- Create sub-accounts to differentiate between paid debts and due dates.
We also advise you to use a software to realize the payrolls since it will also take into account all the helps linked to the.
You must also pay attention to each of the aids since the treatment will not be the same. For the short-time working scheme, the compensation must be accounted for as an expense, but the allowance received must be accounted for as an expense deduction. However, it is difficult to master all the concepts, which is why it is important to have a clear understanding of the accounting principlesuse an adapted software. Esor payroll manager is dedicated to companies.
You will have a tailor-made accompaniment so that the management is optimized.
In addition, this tool takes into account the particularities related to the Covid crisis. You will be able to quickly list all the aid you have obtained. The management of the companies also passes by the use of these software.
When to account for them ?
The covid grants to professionals are not subject to taxation, but they must still be accounted for as operating grants. The companies that have been eligible for the aid from the solidarity fund They must be taken into account at the time of collection. The Accounting Standards Authority reveals that they are to be accounted for in the 74. Two possibilities are however possible:
- You can use the 74 account to credit Covid-related aid.
- The company can also debit account 512 and credit account 4417.
The sums received by the companies must therefore be accounted for at the time of payment. Since it is quite difficult to understand all the intricacies, using a payroll manager is widely recommended. You can also turn to a certified public accountant who will do all the steps according to the recommendations of the authorities.
In all cases, software simplifies the day-to-day management of your payroll by providing you with a more efficient and effective way to manage your business visibility on each of the actions. You will also have a secure environment to account for all support.