Should I Apply For the PPP Loan Forgiveness Right Now in 2020 or Defer?

The Paycheck Protection Program (PPP) was created as a result of the COVID-19 pandemic. It is a part of the Coronavirus, Aid, Relief, and Economic Security Act (CARES Act). Many business owners are wondering if they should apply for the PPP loan forgiveness or defer in 2020.


PL Consulting has helped many employers apply for the PPP loan and assisted others when deciding not to. Here is our expert advice on the pros and cons of applying before the end of 2020.




PPP Background Information

The PPP has helped businesses both large and small ever since it was enacted on June 5, 2020. If you apply for it, all the money that you have borrowed will be forgiven. Payroll costs include all forms of cash compensation paid to employees, including tips, commissions, bonuses, and hazard pay. The forgivable cash compensation per employee is limited to $100,000 annually.


The uncertainty that many employers are having right now is that they want to defer payroll taxes, but still hope and expect to get a PPP loan at some point. Some taxpayers want to avoid IRS penalties that may come with deferring payroll. Others are deferring payroll taxes intending to repay them if they ultimately get loan forgiveness under a PPP loan.


Employers who obtain PPP loans may defer the deposit of payroll taxes until the employer receives a decision from its lender that all or any portion of their PPP loan is forgiven.

Once loan forgiveness has occurred, the employer must resume timely payroll tax deposits. The amount that was deferred through the date that the loan was forgiven will continue to be deferred. Half of the deferred amount will be due on December 31, 2021, and the other half will be due on December 31, 2022.


Our PPP Recommendation

Instead of rushing to apply, consider how much adequate preparation will help you in the decision-making process. If you wait to apply for the PPP loan, there also may be financial benefits for borrowers. There will be additional information and guidance available to you. The loan forgiveness process has been frustrating for many employers, so the longer you wait, the more established the system is.


There is a PPP FAQ page that was recently updated in October. This page has great information that may help with your decision-making process.


Do You Have Additional PPP Questions?

We understand many factors go into your decision as a borrower and employer. We suggest that you discuss your decision with a CPA or legal counsel before submitting your application.

PL Consulting is committed to helping each one of our current and future clients with their business finances and bookkeeping. We are continuously researching up-to-date information on the Paycheck Protection Program. We are available for all the questions you have about the PPP loan forgiveness and deferring. If you would like to set up an appointment, call us at 410-764-3731.

January-October Financial Review for Tax Planning: Why It’s Beneficial


Financial reviews evaluate your financial position. Since everyone’s tax planning needs are different, each review focuses on what is most important to you. 


Financial reviews help with future tax planning. This gives you structure in your transactions and minimizes the legitimate amount of tax you pay. Tax planning is a great tool to use for businesses, wills, retirement plans, and properties. 


Tax season is a stressful time of year for everyone, but everything becomes easier when there is a tax plan in place. These 4 concepts are a part of the tax planning process and will benefit your business. 


tax planning


Utilize Tax Deductions and Tax Credits


Both tax credits and deductions reduce your tax bill. Tax credits are more beneficial, giving you a dollar-for-dollar reduction of income tax that you owe.


Tax deductions are expenses that are subtracted from your taxable income. Expenses include contract labor, supplies, and depreciation. These expenses must be for business use, and not personal use. You should keep track of your tax deductions throughout the year. 


Decide on Standard Deductions or Itemizing


Many taxpayers use standard deduction because it is much faster. Standard deductions are a flat rate deduction. The government provides set amounts of standard deductions each year based on filing statuses. 


Itemizing is a longer process, but typically ends up with more deductions. Itemizing takes your tax deductions one by one.


Determine Your Tax Bracket


Knowing which tax bracket you fall in is vital because it gives you knowledge of your current standing. It also helps you plan for the future. The higher your income is, the more money you may have to pay in taxes.


Keep Track of Your Tax Records


The most important part of tax planning is keeping records of past tax returns and documents. Stay organized so it is easy to find the paperwork. If you work with a tax preparer, it helps them keep you on track to filing taxes on time. 


It can take the IRS up to three years to decide whether to audit your return, so hold on to your records for at least that long.


Financial Review for Tax Planning


PL Consulting is experienced in all facets of tax planning and financial reviews. We structure tax plans to cut the legitimate amount of tax you pay. We help plan your tax obligations for the entire year, so there are not any surprises at tax time. We can explain the tax structure so you know where your money is going. 


Whatever your financial objectives are, we will discuss them with you and then deliver a plan to help you achieve them. We are here as your business’s go-to resource when you have questions about bookkeeping, taxes, and finances. Our services are customized to each of our clients and their business plans. 

If you have questions about why financial reviews for tax planning is beneficial, call us at 410.764.3731 or visit us at

End of Year Bookkeeping Tips: Preparing for 2021


We are quickly approaching the end of 2020. This year many construction companies, small businesses, and restaurants lost money due to COVID-19. The upcoming year is a fresh start for everyone. With these bookkeeping tips, you can stay optimistic and improve your business after the pandemic.


Now is the perfect time to sit down and analyze your business finances. Create a plan to save money, increase profits, and ensure success. Stay prepared for the upcoming year. Follow these bookkeeping tips to end the year smoothly and plan for 2021.



Submit Tax Forms

Although Tax Day (April 15, 2021) seems far away, you want to give your accountants time to file tax forms. Try not to wait until the last minute in case you need to fix any information. Additionally, these common mistakes on your taxes should be avoided. 


Gather important information from your vendors. This includes their name, address, and tax ID number. If your business works with 1099 contract workers, be sure to prepare and submit those forms by January 31, 2021. 


Bookkeeping: Plan a 2021 Budget

Create a new budget for the year based on the previous year. Keep track of what your money is going towards. Budgets put you in the right standing and prevent you from spending money on unnecessary products and services. 


If you are looking for new vendors, do it at the beginning of the year when they are giving out discounts for new customers. The right vendor will be reasonably priced and provide quality products to your company. Make note of the vendor expenses so you can make your payments on time. 


Bonuses and Holiday Gifts

You might still have room in your budget at the end of this year to give back to your hardworking employees. If you decide on using that money towards an end-of-the-year bonus, keep in mind that taxes are involved. These are taxed differently than normal paychecks. Check with an accounting professional if you are unsure of tax laws.


There may also be room in your budget to purchase holiday gifts for employees, customers, or clients. Although you may want to gift them with something expensive to show your appreciation, remember that you have a budget for a reason. Choose gifts that they will enjoy while staying within your means. 


Set and Review Bookkeeping Goals

Measure the success of your yearly goals. You may need to reevaluate or work on some goals. Use these as benchmarks for the next year. Remember that your goals can be quantitative and qualitative. Measure sales, financial statements, customers, and the satisfaction of yourself and customers. 


Get Ready for the New Year

PL Consulting hopes that you enjoy the holidays. Use these business tips to end the year strong and prepare your business for the new year. 


Do you want to learn more about bookkeeping, budgeting, taxes, or goal setting? We are here for all the questions you have as a business owner. If you would like to set up an appointment, call us at 410-764-3731.


Budgeting Basics for Small Business Owners


Creating a budget is one of the most important parts of running your small business. Your budget should be realistic. Match expenses to your expected revenue. Budgeting should allow your small business to expand and grow. 


It is nearly impossible to run a successful business without a budget in place, so you must keep track of what your money is going towards. Budget planning helps with the financial aspect of your business. It also improves general business management. Here is our expert advice on budgeting basics that you need to know to run your small business.

budgeting benefits

Budget Research

Extensive research is the first thing you want to do when developing your budget. Learn about industry standards and common costs that go into running your type of business. Speak with other business owners to get an insight on what expenses are like for them. 


Find suppliers and vendors that fit within your budget. Determine which business has the best deals and quality. Ask the right questions about bulk orders and payment plans.


Use Spreadsheets

When creating a budget for your small business, you must use a spreadsheet to manage your expenses. Drafting a spreadsheet is an effective way to lie out all the important numbers. Constantly update your spreadsheet with your revenue and costs.


Pricing Help

A budget maps out each of your costs including health care, utilities, wages, rent, and marketing. Once you have figured out the costs, you can set a reasonable price for your products and services to make a profit.


Spend What You Need

Budgets prevent you from spending money on unnecessary products and services. Your budget shows your upcoming business costs so you can prepare for them. This ensures that you make your payments in the right amounts and on time. 


Loan Assistance

You might take out a loan to grow your business. This could be for a building renovation, new product, or marketing expenses. Show lenders that you make payments on time and have valuable assets. Your budget proves that you are financially stable enough for their loans. 


Planning for the Unknown

Plans do not always work out. Having a budget in place means you can easily track your business’ financial activity and performance throughout the year. Adjust your budget as new expenses come along so that you are ready for unexpected occurrences. 


Build Your Budget

Whether you do the budgeting on your own or delegate the task to someone else, it needs to be done. Increase your profits, save money, and run a successful business.


PL Consulting has served the Baltimore, Maryland area for many years. We customize our services to each client and their business plans. Your ideas are unique to your business, and we understand that. 


Want to learn more about budgeting basics and benefits? We are here for all of the questions that you have as a small business owner. If you would like to set up an appointment, call us at 410-764-3731.