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Protocol2000
Level 2

Negative balance

Hello, I had a business loan in 2016, and was paid in full through daily payments within the same year. The bank account I had back then is closed, I am dealing with another bank. Why is that account still showing in my Balance Sheet, and with a negative number of 12,000+ related to that loan? Can I fix it? Should it be in 

the BS? 

Thank you in advance for any feedback.

Solved
Best answer March 19, 2020

Best Answers
Ashley H
QuickBooks Team

Negative balance

I hope you're doing well, @Protocol2000.

 

All active and inactive accounts will show in the report if there are transactions assigned to them. 

 

I recommend customizing the report. You can choose which accounts to show in the Balance Sheet and exclude the one with the negative balance (your previous bank account). Here's how:

  1. On the Balance Sheet report, click the Customize Report button.
  2. Navigate to the Filters tab.
  3. Type Account in the Search Filters box.
  4. From All accounts drop-down arrow, choose Multiple accounts.
  5. Select the accounts you want to show in the report by putting a checkmark.
  6. Hit the OK button, then OK again.

For additional information, you can check this article: Customize reports in QuickBooks Desktop. This also contains steps to create a summary and detailed reports, as well as setting up scheduled reports.

 

A negative balance on your Balance Sheet could be the cause of your source account (an Accounts Receivable account) and the target account (the balance sheet account - your bank account) not balancing. I recommend reaching out to your accountant so they can take a look at how this account is set up and make a Journal Entry crediting the A/R account, so this will balance the account to zero.

 

Please refer to this article to see information on how Chart of accounts organizes your transactions: Understand the chart of accounts in QuickBooks.

 

Let me know if you have other questions or concerns. I'm always here to help. Have a beautiful day!

View solution in original post

JonpriL
Moderator

Negative balance

Thank you for sharing the results after following the steps above, @Protocol2000.

 

Let's review the posting bank account of your daily loan payments from 2016. This way, we can identify why your bank account is showing in your Balance Sheet with negative numbers. But before doing so, I'd still recommend reaching out to your accountant. He/she can share the appropriate steps for you to take to fix the negative balance of your bank account.

 

Let's start by pulling up your loan payment transactions from the register of your loan account. To do so:

  1. Go to Lists.
  2. Select Chart of Account.
  3. Find and select your loan account.
  4. Under Reports, select Quick Report.
  5. Click Customize Report.
  6. Enter the date between 2016.
  7. Select OK.
  8. Double click a loan payment transaction to open it.

From here. you'll have to make sure that the payment is posted into the same bank account with the negative balance. If this is not the case, you'll have to edit the posting bank account.

 

I'm adding a few references here for ideas in managing your reports and transactions: Reports and Accounting for QuickBooks Desktop.

 

Let's know in the comments if you need more help. Always here to help.

View solution in original post

7 Comments
Ashley H
QuickBooks Team

Negative balance

I hope you're doing well, @Protocol2000.

 

All active and inactive accounts will show in the report if there are transactions assigned to them. 

 

I recommend customizing the report. You can choose which accounts to show in the Balance Sheet and exclude the one with the negative balance (your previous bank account). Here's how:

  1. On the Balance Sheet report, click the Customize Report button.
  2. Navigate to the Filters tab.
  3. Type Account in the Search Filters box.
  4. From All accounts drop-down arrow, choose Multiple accounts.
  5. Select the accounts you want to show in the report by putting a checkmark.
  6. Hit the OK button, then OK again.

For additional information, you can check this article: Customize reports in QuickBooks Desktop. This also contains steps to create a summary and detailed reports, as well as setting up scheduled reports.

 

A negative balance on your Balance Sheet could be the cause of your source account (an Accounts Receivable account) and the target account (the balance sheet account - your bank account) not balancing. I recommend reaching out to your accountant so they can take a look at how this account is set up and make a Journal Entry crediting the A/R account, so this will balance the account to zero.

 

Please refer to this article to see information on how Chart of accounts organizes your transactions: Understand the chart of accounts in QuickBooks.

 

Let me know if you have other questions or concerns. I'm always here to help. Have a beautiful day!

View solution in original post

Protocol2000
Level 2

Negative balance

While I did all suggested steps, when I run my Balance Sheet, I still have the old bank account showed with a negative balance. I am so puzzled! This negative balance comes from a loan I took back in 2016, I don't understand the reason why I show a negative number, when the bank account used to pay off the loan it has been closed for a couple of years. Please help. Thank You.

 

 

JonpriL
Moderator

Negative balance

Thank you for sharing the results after following the steps above, @Protocol2000.

 

Let's review the posting bank account of your daily loan payments from 2016. This way, we can identify why your bank account is showing in your Balance Sheet with negative numbers. But before doing so, I'd still recommend reaching out to your accountant. He/she can share the appropriate steps for you to take to fix the negative balance of your bank account.

 

Let's start by pulling up your loan payment transactions from the register of your loan account. To do so:

  1. Go to Lists.
  2. Select Chart of Account.
  3. Find and select your loan account.
  4. Under Reports, select Quick Report.
  5. Click Customize Report.
  6. Enter the date between 2016.
  7. Select OK.
  8. Double click a loan payment transaction to open it.

From here. you'll have to make sure that the payment is posted into the same bank account with the negative balance. If this is not the case, you'll have to edit the posting bank account.

 

I'm adding a few references here for ideas in managing your reports and transactions: Reports and Accounting for QuickBooks Desktop.

 

Let's know in the comments if you need more help. Always here to help.

View solution in original post

Protocol2000
Level 2

Negative balance

When I edit transaction, this is what I get:

Credit to bank account... $237.11

Debit to Other Current Liability... $171.81

Debit to Interest Expense... $65.30

Same entry done for all other payments, which gives me a zero balance due. When I run BS, the same account displays a (12,233.79)

Thanks everyone for helping me understand!! No doubt you never stop learning.

Protocol2000
Level 2

Negative balance

Thank you JonpriL. When I double click the transaction, this is what I get:CREDIT to bank account for 237.11

DEBIT Other current liabilities for 171.81 and DEBIT to interest expense for 65.30. Is this correct? Thank You.

Protocol2000
Level 2

Negative balance

Hello everyone. I followed your advise, and it worked, the negative balance for that loan is not on my Baance Sheet. Now, I transfer all my Quickbooks information to Turbo Tax S Corp tax preparation, and the -12,344 is there!!! what am I doing wrong?? Please help! I don't have a CPA.

Thanks again.

katherinejoyceO
QuickBooks Team

Negative balance

Thanks for coming back for more support, @Protocol2000. I appreciate you for following the steps provided by my peers above. 

 

Since the issue was when you transfer all your QuickBooks info to TurboTax, I'd suggest you contact their support at this point. You can visit the TurboTax Community to help you out with this concern. They have a dedicated support and experienced users who can guide you through the process. 

 

Please know I'm always available here to lend a helping hand. Let me know if you have more questions about QuickBooks. Stay safe. 
 

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