Are there "negative" liability accounts?

dontworryaboutit

Sales tax collected is a liability. Remitting this sales tax decreases the liability.

If you remit more than required or pay a sales tax security deposit (required in Canada) your liability account is negative.

A negative liability account however looks incorrect on balance sheet. Are there "negative" liability accounts?

KristenV

Hi @dontworryaboutit !

Liability accounts on your Balance Sheet report are able to be negative if, as you mentioned, you remit more than the amount needed. If you have additional questions about this, feel free to reach back out!