Hello All,
I need help with correcting a negative cash balance in my QuickBooks from 2023. It occurred from fraudulent activity from a "client". I have been trying to locate information on how to make the proper transactions to remove the negative balance, but have been unsuccessful. I will leave as much detail as I can below that is relevant to making the accounting corrections.
I received pre-payment for services in the amount of $1,650.00 from a "new client". I deposited the check into my business account and withdrew the funds in an owner draw. Before I spent any of the funds, I detected that the request was part of a scam. I notified the proper entities of the fraud and upon request from my bank, I deposited the funds back into my business account so the bank could execute their protocol for fraud behavior. Part of that is recouping the funds and sending back to the original location.
In doing so, this left a negative cash balance in my QuickBooks of $1,650.00. I have not been able to figure out how to get this to show $0.00. My accountant at the time was not aware of how to make the correction in the system either, so this was locked in for 2023. I appreciate any help in figuring out how to get this zeroed out and hopefully not messing up reports/numbers for this year or last. I attached screenshots from my QuickBooks in hopes that this will help seeing the order of events.
Sincerely,
Rachel H., a.k.a. Up A Stream
