Are we supposed to track the PPP loan's forgivable expenses on CASH or ACCRUAL basis? Accrual makes more sense but some say CASH basis. In our case, we had a payroll the week after getting our loan but it was for the period BEFORE we got our loan. If i then go our and re-hire employees, I can only claim the lower payday for that first month. Not very fair, especially for companies that laid off most of their employees and now have to re-hire once PPP Loan is received.