I have a client that set up their mortgage as a credit card. How do I correct this in QBO to reflect as a long term liability?

To effectively track your liabilities in QuickBooks Online (QBO), you'll need to create an account and manually reclassify each mortgage entry from the credit card to the newly created account, Spma. Below, I'll show you how.

You'll have to establish a liability account for the mortgage. This will allow you to accurately record details such as unpaid balances and the balance as of a specific date. Here's how to create a liability account for your mortgage:

1. Log in to your QBO account. 

2. Navigate to the Chart of Accounts from the Transactions tab.

3. Click the New button. 

4. Enter the account name (e.g., "Mortgage").

5. Choose Long Term Liabilities under Account Type, then Notes Payable under Detail Type. If you plan to pay the loan by the end of the current fiscal year, pick Other Current Liabilities as the Account Type.

6. Fill in any other necessary details and click Save.

Once you have created the long-term liability account for the mortgage, you can manually reclassify each transaction from the credit card to this newly created account. If you're using QuickBooks Online Accountant to manage your client's account, you utilize the reclassify tool to batch reclassify transactions, which will save you time.

After completing these steps, it's essential to regularly update the account balances and reconcile your accounts to maintain the accuracy of your records.

Additionally, we offer a valuable service that can enhance your bookkeeping workflow. You can check our QuickBooks Live Expert Assisted. It's an additional service that will help you keep your business organized.

Count me in if you need assistance with recording transactions in QuickBooks. You can also ask more questions about the program, and I'll respond as soon as possible. Stay safe.

@spmaine 

If you want this corrected going forward (and the cc balance accurately represents the mortgage balance), set up the mortgage payable as a long-term liability and transfer the balance (New > Transfer) from the cc to the mortgage payable. You should then be able to enter a $0.00 ending balance for the cc and reconcile it.  Then, make the cc inactive.

It would be a headache to fix the historical transactions if the bank account has been regularly reconciled and the books closed.