Change Liability Account to Decrease

Yes, I'm here to help you decrease your liability account's balance for a car loan in QuickBooks Online (QBO), @jbooze1. 

You may have entered the account's opening balance as a positive amount or incorrectly. That may be the reason its balance is increasing in the program. The amount should be negative since the future payments to the bank are a liability for your business. 

Let's go to the account's register so you can view its opening balance. You can also edit it if you've confirmed it's incorrect from there. I'll guide you how. 

1. Go to Accounting from the left menu and select Chart of Accounts. 
2. Find the liability account and click View Register from the Action column. 
3. Locate the transaction that has a memo of "Opening Balance". 
4. View the amount in the Increase column. If it's incorrect, edit it or put a negative sign before the amount. 
5. Click Save. 
6. Choose Yes to confirm. 

The two screenshots below show you the steps. For more information, check out this article: Edit An Incorrect Opening Balance. 

Once done, you'll have to record the money you got from the loan using a journal entry. Then, enter a check to track your loan payment. For the detailed instructions, visit this article: Setting Up A Loan. Here's a sample screenshot of how the process looks like in the account register. You can also see that the balance is decreasing from the $-125,000 original loan amount. 

Since a car is an asset, it gradually loses value over time. With this, you can manually track its depreciation through journal entries. To learn more about this process, kindly refer to this article: Depreciate Assets In QBO. 

I'll lend a helping hand if you need anything else. Keep safe always, @jbooze1. 

Hello, that appears to have worked. The balances are now decreasing. The opening balance transaction still shows as being reconciled, will that effect subsequent transactions when it comes to reconciling? Thanks for your help.