In my balance sheet should a loan be a negative number

I'm glad you check this with us, scuba32541.

A loan on a Balance Sheet is a liability. When you see a negative number for a loan, this indicates that there is a credit balance. Which means, the company paid more than the amount needed.

To correct this, you may want to create a journal entry to credit the Accounts Receivable account to zero out the balance. 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.
   
3. Fill out the fields to create your journal entry.
4. Select Save and new or Save and close.

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

Let me know if you have additional questions. I'd be more than happy to help. Have a nice day ahead!

If the company borrowed money to be paid back to lender, yes that would be a credit balance liability.

If the company loaned money to someone else, then that loan would be a debit in an asset account.

Adding for clarification:

Whether the amount on a report shows with brackets or not, depends on the report.

Income statement and balance sheet show all amounts without brackets, even when they are credits.

These two reports show "normal" balances without brackets, and show "opposite" balances with brackets.

I teach all my clients to use the TB (Trial Balance) reports since it shows ALL accounts on one page and has columns for debits vs. credits. This helps them learn which is which without trying, just by seeing on report.

@scuba32541 

"In my balance sheet should a loan be a negative number"

NO.

Whenever you've got a negative number on the Balance Sheet for loan account, it's the opposite of what the account type should be.

For example Loan from the Bank is a liability on the Balance Sheet, it should show a positive balance always unless the loan is overpaid or transactions are mixed up in the loan register. Or it should not be a liability account.