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BuckheadBookkeeper
August 31, 2021
Question

Negative numbers on balance sheet

  • August 31, 2021
  • 2 replies
  • 0 views

My client has negative numbers on their Balance sheet in these areas.....

 

Assets

Clearing Account - Negative Number

 

Other Current Assets

Undeposited Funds – Cash and Checks – Negative Number

Payroll Asset – Negative Number

 

Liabilities

Accounts Payable – Negative Number

 

Equity

Retained Earnings – Negative Number

Net Income – Negative Number

 

How can I fix these?

2 replies

C
Charies_M
August 31, 2021

You came into the right place for help, BuckheadBookkeeper.

 

The negative numbers showing on the accounts indicate that there is a credit balance that made the company paid more than the expected amount. This can be fixed by creating a Journal Entry to credit the accounts affected. This way, the balance will be zeroed out.

 

Before doing so, I recommend reaching out to your accountant so they can guide you on which accounts to choose.

 

Here's how to create a journal entry:

 

  1. Go to + New icon.
  2. Select Journal entry.
    1.PNG
  3. Fill out the fields to create your journal entry.
  4. Select Save and new or Save and close.

I've got a visual guide on Understanding the Balance Sheet: Asset, Liability,; and Equity. This contains helpful information about managing the balance sheets in QBO.

 

You  might also want to check out these articles that can give some insight into reconciling process: 

I want to make sure that you're able to get back to running your business as soon as possible. I'll be back around shortly. 

C
Charies_M
September 2, 2021

Hi, BuckheadBookkeeper.


Hope you’re doing great. I wanted to see how everything is going about the negative numbers on the Balance Sheet. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at any time.


Looking forward to your reply. Have a pleasant day ahead!

P
PRECIOUSs
October 4, 2024

I also have a negative number on the PayPal on the balance sheet, how can I fix this ?  Oh and my bank has a recon discrepancy of the same amount also negative balance.

R
RoseJillB
October 5, 2024

Let's go over to your reports and register to fix discrepancies in your entries, @PRECIOUSs. This way, we can ensure an accurate record of your finances. 

 

In QBO, when your bank balance is negative, it usually results from making payments or processing checks that exceed the available funds in your checking account. This results in a negative figure on your balance sheet report. Additionally, mis-categorized or mismatched transactions can also lead to a negative balance.

 

To address this, we can pull up your Balance Sheet report and click on the negative amounts to identify which transactions are causing discrepancies.

 

Regarding the reconciliation issue, the negative amounts stem from transactions that were deleted after being marked as reconciled. Duplicate entries can also impact your register's balance. To resolve this, we'll need to check your bank register for valid transactions that are marked as unreconciled and re-reconcile them. After that, we will unreconcile the duplicate entries once they have been verified.

 

Furthermore, you can review these articles to guide you in customizing reports streamlined to your business needs and fix issues after reconciling an account:

 

 

If you have any further questions or need assistance with any specific transactions or reconciliations, please don't hesitate to reach out. We are here to help you achieve clarity and accuracy in your financial management. 

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