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I have a business and I have a company credit card. I have linked this card with my QuickBooks online account. When I pull a "balance sheet comparison" report for the year, it is showing an amount in the "Total Liabilities" line. Here is a screenshot:

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When I click the amount, it lists all the amounts for which I used my credit card. Screen shot here:

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I am being asked the question:

"Please verify that you do in fact have negative liabilities as listed on your financial statement. That is normally as asset. ".

However, I am not sure whether these are negative liabilities as they are credit card expenses. Is it normal in QuickBooks to have credit card expenses being shows as liabilities? Is there a way I can correct this?

  • Do you think an amount owed to a credit card bank is not a liability? – quid May 2 '17 at 0:38
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    @quid I agree. If the amount is owed to a credit card it should be a liability. However, perhaps not a "negative liability". From (here)[accountingtools.com/questions-and-answers/… A negative liability typically appears on the balance sheet when a company pays out more than the amount required by a liability. Does the negative reflect that I over paid the credit card or I owe that much? Second is certainly not the case. – Josh May 2 '17 at 0:57
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Is it normal in QuickBooks to have credit card expenses being shows as liabilities? Is there a way I can correct this?

If they are expenses they shouldn't be negative liabilities unless you overpaid your credit card by that amount. It sounds like perhaps when you linked the account the credit/debit mapping may have been mixed up.

I've not used QB Online, but it looks like you might have to un-link the account, move all the existing transactions to 'excluded' and then link the account again and flip-flop the debit/credit mapping from what it is now. Hopefully there's an easier way.

This QB community thread seems to address the same issue.

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