Long Term Liability

No worries, help has arrived to ensure you can update your account from bank type to long-term liability, @VroomVroom.

Turning a bank account into a long-term liability type only takes a few steps in QuickBooks Online (QBO). Here's how you do it:

1. Click the Gear icon and then choose Chart of Accounts.
2. Find the bank account you want to change in the list.
3. Under the Action column, click the drop-down arrow and choose Edit.
4. Select the Account Type and Detail Type (Long-term Liabilities).
5. Hit Save and Close.
6. A window opens and says, "Changing the type or tax form of an account may affect your accounting and reporting. Are you sure you want to do this? Hit the Yes button to confirm.

If you have transactions associated with this bank, you need to locate and change those entries manually to a different cash account type. You can also create a new account for your long-term liability. Then, transfer the existing transactions from your bank to this account.

You can invite an accountant to reclassify them for you. QBO Accountant version has a reclassifying tool that helps expedite the movement process.

This article gives you insights into how the chart of accounts works and why it’s essential to set it up correctly: Learn about the chart of accounts.

If you have follow-up questions or other concerns about operating your company’s accounts, please let me know by leaving comments below. I'd be glad to answer them for you, @VroomVroom.

@VroomVroom 

"How do I turn a "Bank" account into a long-term liability?"

You can't.  The bank accounts must have negative balances if that's the case.  The easiest thing to do is to move the amount from the bank account to the LTL account using the Transfer function (New > Transfer).  Or, even better, reclassify all of the transactions from the bank account to the LTL.  That way, all of the loan history will be under the LTL.