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Plantae
November 22, 2022
Question

-negative cash

  • November 22, 2022
  • 1 reply
  • 0 views

Hi,

 

How to offset -negative cash in balance sheet?

 

Thank you.

    1 reply

    KlentB
    KlentB
    November 22, 2022

    You came into the right place for help, Plantae.

     

    The negative cash balance in your Balance Sheet report is caused by a credit balance. This happens when a business has paid more funds than it has on hand. 

     

    You can fix this by creating a journal entry to move the amount of the overdrawn checks into a liability account. Then, shift the withdrawals back into the cash account at the beginning of the next reporting period. Keep in mind you may need to consult an accounting professional to ensure that everything is accurately recorded. Here's how:

     

    1. Click the + New button.
    2. Choose Journal entry.
    3. On the first line, select an account from the Account field.
    4. Depending on if you need to debit or credit the account, enter the amount in the correct column.
    5. On the next line, select the other account you're moving money to or from. 
    6. Enter the same amount in the opposite column.
    7. Add a memo as needed, then click Save and close.

    To learn how to resolve common issues in your financial reports, check out these articles:

     


    I'll be around whenever you have concerns with your books and reports. Assistance is just a post away.

    D
    Dhammy3
    November 12, 2023

    I have this same issue. My payroll and tax payments were being recorded out of my quickbooks "Cash Account" instead of my connected Business Checking Account when I would write checks for these exspenses. Now I have a negative cash balance in quickbooks. I need to offset them for a credit so that my cash balance is 0. 

    AldritchM
    AldritchM
    November 12, 2023

    We would like to thank you for coming to our Community page, @Dhammy3.

     

    I'll help you correct your records so that your payroll and tax payments show as coming from your Checking Account instead of your Cash Account. Aside from that, we'll set your Checking Account as the default account for payroll, ensuring that all future transactions are posted through it.

     

    To create a journal entry:

     

    1. Go to the +New icon.
    2. Select Journal entry.
    3. Fill in the fields needed.
    4. Click on Save and Close.

     

    To update the bank account in the payroll settings:

     

    1. Go to the Gear icon, then click on Payroll Settings.
    2. Tap on Accounting.
    3. Choose your bank from the Paycheck and payroll tax payments section.
    4. Click Save and Done.

     

    You can also check out the resources provided in this link for additional tips on managing your payroll accounting settings with QBO: Change your accounting preferences in QuickBooks Online Payroll.

     

    If you have any other issues or questions regarding payroll, feel free to reply. I'm here to help!

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