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Tracking COVID-19 Related Costs
In this unprecedented time, our firm strongly recommends that all additional costs, related to COVID-19, be tracked separately from all other costs/departments. We recommend setting up a "new" department in your general ledger (financial statements) to track as many COVID-19 related expenses as possible. In these uncertain times, we want to be cautious and proactive. Facilities might have to verify the additional costs due to, but not limited, to the following.
Loans (SBA and others) - example: 8 week tracking period for SBA loan
Potential Medicaid additional add-ons (currently under discussions)
Below are examples of possible additional expenses:
Payroll - example: new staff hired for infection control, replacement workers for those sick, OT, additional labor for cleaning, hazard pay to maintain staff, etc.
Personal Protective Equipment (PPE) - masks, gloves
Screening costs for employees to enter the building
Cleaning supplies and additional costs for everyday supplies
Building retro fittings - example: putting in dividers to separate employees, staff, etc.
Please inform those responsible for your general ledger/financial statements. If you have any questions or need assistance, please contact our office.
Blog by Robin Parker, CPA, Sr. Accountant