Consider having a bank account with a negative balance. That’s an overdraft. Moreover, it’s typical to setup a bank account in the current asset sector of your accounting software. At report time, if the bank balance remains in the asset section, it’ll show with brackets or a minus sign. Optimally, the line item should reflect as a liability. For this reason, LodgeiT will switch the line item automatically in the special purpose reports. This is done to provide a more easily digestible report for non-accountants.
Bank Accounts < --- > Bank Overdraft line items
Credit cards < --- > Credit Cards – Debit Balances
Loans to Associated Person < --- > Loans from Associated Persons
Other Loans < --- > Other Loans
Other Current Assets < --- > Other Current Liabilities