Cash Expense shows a negative in Balance sheet

accountingatheart · ‎May 20, 2022

Hello,

I have created a cash expense for a client of mine that purchases some stuff in cash. When I go and check the Balance sheet there's a negative sign in front of the amount. I was wondering if that negative should be there? or do I need to fix it as an accountant?

Thanks

Adrian_A · ‎May 20, 2022

Good day, accountingatheart!

I'm here to share some details on why there's a negative amount on the Balance Sheet report.

The negative numbers showing on the cash expense item indicate there's a credit balance that your client paid more than what was expected.

You can fix this by creating a Journal Entry to credit the accounts affected and zeroed them out.

Also, to ensure that the transactions match your client's bank and credit card statements, you can reconcile the accounts. Here's an article as your guide: Reconcile accounts.

I'll be around whenever you have concerns with your client's account.

View solution in original post

Adrian_A · ‎May 20, 2022

Good day, accountingatheart!

I'm here to share some details on why there's a negative amount on the Balance Sheet report.

The negative numbers showing on the cash expense item indicate there's a credit balance that your client paid more than what was expected.

You can fix this by creating a Journal Entry to credit the accounts affected and zeroed them out.

Also, to ensure that the transactions match your client's bank and credit card statements, you can reconcile the accounts. Here's an article as your guide: Reconcile accounts.

I'll be around whenever you have concerns with your client's account.

accountingatheart · ‎May 20, 2022

Hello,

Thanks for replying back, this answered my question. Now, Do I have to cero it out every month? or a the end of the fiscal year?

Tori B · ‎May 20, 2022

Hi there, @accountingatheart.

Thanks for following up with us.

There is no set rule on how often you need to do this, that would be a decision made between you, your client and their business needs.

Please feel free to reach back out if you have any other questions or concerns. I'm always around to lend hand. Take care!

DEA LLC · ‎August 09, 2024

I paid for expense with personal cash, now I have a negative cash balance sheet account.

how do I reimburse myself and zero out the negative cash balance?

MirriamM · ‎August 09, 2024

Hello there, DEA LLC.

In QuickBooks Online (QBO), there are two ways to reimburse the money you spent on business expenses. You can choose to record the reimbursement as a Check or as an Expense transaction. Before proceeding, it's important to make sure that you have already recorded the business expense you paid for with personal funds. Here's how you can do it:

In the left menu, click the + New button.
Choose Journal entry.
On the first line, select the expense account for the purchase.
Enter the purchase amount in the Debits column.
On the second line, select Partner's equity or Owner's equity.
Enter the same purchase amount in the Credits column.
Select Save and close.

Once you've completed this, you can begin tracking the reimbursement using the following steps:

In the left menu, click the + New button.
Choose Expense or Check.
Select a bank account to use to reimburse the personal funds.
In the Category column, select Partner's equity or Owner's equity.
Enter the amount of the reimbursement.
Choose Save and close.

For future help, you can run reports to ensure that everything has been accurately documented. Reviewing statements will also help you assess your entries and ensure accurate reconciliation.

Please leave a message if there's anything else you need to record your transactions. We're always here to lend a hand, DEA LLC. Have a great day!

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Cash Expense shows a negative in Balance sheet