Question

Can i change a liability account to an expense account?

Forum|Forum|3 years ago
November 29, 2022
1 reply
8 views

The account set up for payroll taxes paid was accidently set as a liability and not an expense.

QuickBooks Online

Level 6

Welcome to the Community, @arc.outdoorsmen.

Yes, we can change the account type for payroll taxes paid in QuickBooks Online (QBO), and I'd be glad to help you with that!

In the Chart of Accounts, all parent accounts and their subaccounts must have the same account type. If you want to change the account type for a group of accounts, let's start with the subaccounts followed by the parent account. Before changing, make sure you're in Accountant view.

Once confirmed, here's how to change the account type:

Go to the Gear icon and select Chart of Accounts.
Locate the account you want to change.
From the Action column, click the dropdown button beside View register and select Edit.
Change the account category to Expenses.
From the Save account under dropdown, select Expenses.
In the Tax form section, choose the appropriate detail type (Taxes Paid).
Fill out other necessary information and click Save.

You'll be prompted that changing the account type may impact your accounting and reporting. Select Yes to confirm.

In addition, you might also want to reconcile your account. This way, you can review your accounts in QBO to ensure they match your bank and credit card statements.

Should you have additional questions about changing account types in QBO, please don't hesitate to ask the Community. We're available 24/7 to answer them. Keep safe!

C

CLBLAB

TRYING TO CHANGE EXSPENSE TO LIABILTY . IT WILL NOT ALLOW ME TO EDIT ..IT COMES BACK SAYING THIS ACCOUNT IS BEING USED ON A CHECK, DEPOSIT,PAYMENT OR OTHER CASH OR UNDEPOSITED. I MUST LOCATE THE TRANSACTIONS USING THE ACCOUNT REGISTER... I HAVE VEIWED THE ACCOUNT REGISTER... WHAT DOES THIS MESSAGE MEAN...WHAT DO I NEED TO BE LOOKING FOR

JaeAnnC

Level 6

Let's work together to change an expense account to a liability account in QuickBooks Online (QBO), @CLBLAB.

The error message you encountered appears when trying to edit an account type with existing transactions. To resolve this, you'll need to run an Account QuickReport to identify the entries in that account and change each one to the appropriate account.

To do that:

Go to the Gear icon and select Chart of Accounts.
Locate the expense account you want to change and click Run Report under the Action column.
Select the transaction. Under the Category column, choose the appropriate liability account.
Click Save and Close.

If you're referring to changing the account type of your payroll transactions, you can do so in the Payroll Accounting Settings. This simplifies the process without requiring individual adjustments. I'll share this article as your guide: Change your accounting preferences in QuickBooks Online Payroll.

Moreover, do you need an extra hand with handling your accounts in QBO? If so, feel free to visit our QuickBooks Live Assisted page to connect with our experts and ask questions related to account management.

Please don't hesitate to explore the QuickBooks Community page if you have additional questions about changing account types. You can always rely on our team for answers. Stay safe.

Sign up

Login with SSO

Let's get you signed in

Login with SSO