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hwall
Level 1

Switching Owner's Equity to a Long Term Liability

Hi. I am an accounting/bookkeeping newbie.

 

When I set up my the business in quickbooks a year ago, I added the loan from the owner's to the owner's equity accounts instead of making it a Long Term Liability (it is a loan not an investment). 

 

How do I fix this?

 

Thank you!

Solved
Best answer February 08, 2020

Best Answers
GlinetteC
Moderator

Switching Owner's Equity to a Long Term Liability

Welcome to QuickBooks Community, hwall.

 

I've got steps on how we can switch this to a long term liability. Please follow the steps below:

  1. From the Accounting tab, select Chart of Accounts.
  2. Locate the account type where you've set up incorrectly.
  3. Click the drop-down arrow besides View register.
  4. Select Edit.
  5. In the Account Type, make it to a Long Term Liabilities account. 
  6. In the Detail Type, select Other Long Term Liabilities.
  7. In the Name field, you may enter Long Term Liability/ies.
  8. Click Save and Close.

Here are screenshots that will serve as your visual guide:

ltl1.PNG

ltl.PNG

I'd also recommend reaching out to your accountant to make sure this is best for your business and proper recording is applied to your books to avoid messing them up. 

 

You're always welcome to post again anytime here if you need help with managing your QuickBooks.

View solution in original post

1 Comment 1
GlinetteC
Moderator

Switching Owner's Equity to a Long Term Liability

Welcome to QuickBooks Community, hwall.

 

I've got steps on how we can switch this to a long term liability. Please follow the steps below:

  1. From the Accounting tab, select Chart of Accounts.
  2. Locate the account type where you've set up incorrectly.
  3. Click the drop-down arrow besides View register.
  4. Select Edit.
  5. In the Account Type, make it to a Long Term Liabilities account. 
  6. In the Detail Type, select Other Long Term Liabilities.
  7. In the Name field, you may enter Long Term Liability/ies.
  8. Click Save and Close.

Here are screenshots that will serve as your visual guide:

ltl1.PNG

ltl.PNG

I'd also recommend reaching out to your accountant to make sure this is best for your business and proper recording is applied to your books to avoid messing them up. 

 

You're always welcome to post again anytime here if you need help with managing your QuickBooks.

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