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Protocol2000
March 19, 2020
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Negative balance

  • March 19, 2020
  • 1 reply
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Hello, I had a business loan in 2016, and was paid in full through daily payments within the same year. The bank account I had back then is closed, I am dealing with another bank. Why is that account still showing in my Balance Sheet, and with a negative number of 12,000+ related to that loan? Can I fix it? Should it be in 

the BS? 

Thank you in advance for any feedback.

Best answer by Ashley H

I hope you're doing well, @Protocol2000.

 

All active and inactive accounts will show in the report if there are transactions assigned to them. 

 

I recommend customizing the report. You can choose which accounts to show in the Balance Sheet and exclude the one with the negative balance (your previous bank account). Here's how:

  1. On the Balance Sheet report, click the Customize Report button.
  2. Navigate to the Filters tab.
  3. Type Account in the Search Filters box.
  4. From All accounts drop-down arrow, choose Multiple accounts.
  5. Select the accounts you want to show in the report by putting a checkmark.
  6. Hit the OK button, then OK again.

For additional information, you can check this article: Customize reports in QuickBooks Desktop. This also contains steps to create a summary and detailed reports, as well as setting up scheduled reports.

 

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 recommend reaching out to your accountant so they can take a look at how this account is set up and make a Journal Entry crediting the A/R account, so this will balance the account to zero.

 

Please refer to this article to see information on how Chart of accounts organizes your transactions: Understand the chart of accounts in QuickBooks.

 

Let me know if you have other questions or concerns. I'm always here to help. Have a beautiful day!

1 reply

Ashley H
Ashley HAnswer
March 19, 2020

I hope you're doing well, @Protocol2000.

 

All active and inactive accounts will show in the report if there are transactions assigned to them. 

 

I recommend customizing the report. You can choose which accounts to show in the Balance Sheet and exclude the one with the negative balance (your previous bank account). Here's how:

  1. On the Balance Sheet report, click the Customize Report button.
  2. Navigate to the Filters tab.
  3. Type Account in the Search Filters box.
  4. From All accounts drop-down arrow, choose Multiple accounts.
  5. Select the accounts you want to show in the report by putting a checkmark.
  6. Hit the OK button, then OK again.

For additional information, you can check this article: Customize reports in QuickBooks Desktop. This also contains steps to create a summary and detailed reports, as well as setting up scheduled reports.

 

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 recommend reaching out to your accountant so they can take a look at how this account is set up and make a Journal Entry crediting the A/R account, so this will balance the account to zero.

 

Please refer to this article to see information on how Chart of accounts organizes your transactions: Understand the chart of accounts in QuickBooks.

 

Let me know if you have other questions or concerns. I'm always here to help. Have a beautiful day!

P
Protocol2000Author
March 19, 2020

While I did all suggested steps, when I run my Balance Sheet, I still have the old bank account showed with a negative balance. I am so puzzled! This negative balance comes from a loan I took back in 2016, I don't understand the reason why I show a negative number, when the bank account used to pay off the loan it has been closed for a couple of years. Please help. Thank You.

 

 

J
JonpriL
March 19, 2020

Thank you for sharing the results after following the steps above, @Protocol2000.

 

Let's review the posting bank account of your daily loan payments from 2016. This way, we can identify why your bank account is showing in your Balance Sheet with negative numbers. But before doing so, I'd still recommend reaching out to your accountant. He/she can share the appropriate steps for you to take to fix the negative balance of your bank account.

 

Let's start by pulling up your loan payment transactions from the register of your loan account. To do so:

  1. Go to Lists.
  2. Select Chart of Account.
  3. Find and select your loan account.
  4. Under Reports, select Quick Report.
  5. Click Customize Report.
  6. Enter the date between 2016.
  7. Select OK.
  8. Double click a loan payment transaction to open it.

From here. you'll have to make sure that the payment is posted into the same bank account with the negative balance. If this is not the case, you'll have to edit the posting bank account.

 

I'm adding a few references here for ideas in managing your reports and transactions: Reports and Accounting for QuickBooks Desktop.

 

Let's know in the comments if you need more help. Always here to help.

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