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T
TWE3
July 6, 2022
Question

Closed Bank accounts

  • July 6, 2022
  • 1 reply
  • 0 views

Using QBs Online -- the non-profit I'm bookkeeping for has 2 previous bank accounts that are showing negative balances in the chart of accounts.  Both seem to be fully reconciled as of account closing based on a review of the reconciliation reports.  These negative balances are affecting the Statement of Financial position that we are trying to create for a potential auditor.  I see that it is possible to inactivate these accounts through the chart of accounts, but it indicates an adjusting transaction will be made and I'm concerned that the adjustment will further confuse the issue.  How about simply editing this balance to zero via the chart of accounts?  Does this sound reasonable?

 

Thanks,

Nanette

 

 

1 reply

M
Mich_S
July 6, 2022

I can see you're trying to fix the negative balance on a reconciled bank account, @TWE3. I'm here to ensure you'll get the help that you need.

 

Kindly make sure to run the Balance Sheet report and review the discrepancy from there. You can do that by clicking on the negative amount. See the photo below for reference:

 

 

Furthermore, please note that QuickBooks Online creates an adjusting entry if an inactive account has either a positive or negative balance. Before taking any further actions, it's best to get in touch with an accountant. They have the ability to look into this further and give you the best accounting advice to avoid errors in your books.

 

Here's a guide on how you can manage reports in QBO: Customize reports in QuickBooks Online.

 

I'm always ready to answer additional questions that you may have regarding banking or QuickBooks in general. Take the best care!


 

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