You came into the right place for help, RedTopConstruction.
Usually, a negative bank balance is a result of making payments or issuing checks that are larger than the amount of money in your account. I'd suggest checking its transaction report and reviewing the payment transactions from the register of that bank account. To do so:
- Go to Lists.
- Select Chart of Account.
- Find and select the bank account.
- Under Reports, select Quick Report.
- Click Customize Report.
- Enter the date between 2016.
- Tap OK.
- Double click a loan payment transaction to open it.
From there. you'll have to make sure that the payment is posted into the same bank account with the negative balance. Also, the data on the Balance sheet depends on how you set the filters. Here’s what we can do to correct the negative balance on your report:
- Let’s make sure to have the correct report period.
- Then we’ll also make sure to check the accounting method if it is Cash or Accrual.
- Check the box that says “Show unrealized gain or loss” so it will also appear on the report.
On the other hand, 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'd suggest reaching out to your accountant to take a look at how this account is set up, Then, they'll make a Journal Entry that credits the A/R account to balance the account to zero.
I'm adding a few references here for ideas in managing your reports and transactions: Reports and Accounting for QuickBooks Desktop. Feel free to visit our Banking page for more insights about managing your company's income and sales transactions.
I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Feel free to reply to this post and I'll get back to you. You have a good one.
