Charlie, I appreciate you for posting in the Community. I'm here to explain why your Balance Sheet report in QuickBooks Online (QBO) shows liabilities as a negative amount.
When a company pays out more than is necessary, it often results in a negative liability on the balance sheet. For instance, a loan from the bank is listed as a liability. It should have a positive balance unless it's being overpaid.
That said, I advise checking the payments to ensure they're correct. Delete the entries once a transaction is entered accidentally into the liability account.
Alternatively, create a journal entry to offset the liability. To do that, go to + New and select Journal Entry. However, it's best to accomplish this with the guidance of an accountant to ensure the appropriate accounts to use and to keep them in order. If you're not affiliated with one, please utilize our ProAdvisor tool to search for nearby professionals.
Furthermore, the sum of your assets should equal the total of your liabilities on your balance sheet. When they don't, this article will help you find out what went wrong and how to resolve it: Fix a Balance Sheet that's out of balance.
Keep me posted for any follow-up questions you have concerning your Balance Sheet report. I'm always on the lookout for your response. Stay safe, and have a nice day ahead, Charlie!
