Bank account shown as liability on balance sheet

Any non-GBP account will need to be adjusted due to currency fluctuations. So although the bank account has a balance in it’s currency (e.g. USD), in the background and on reports like your Chart of Accounts and Balance Sheet, there’s a GBP balance.

On the bank account itself, you can go to Options and record the currency gain/loss there. The values here only affect the GBP balance.
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As an example, let’s say the balance of your USD account is $100.00, and the GBP value currently on QuickFile is £80.00. But as of today, the value is £75.00, so it needs to be adjusted down £5.00. I’ve kept the numbers simple for the purpose of this example.


To do this, I’d go to record a currency gain/loss, and enter the following journal entry:

This then adjusts your chart of accounts to the new value, and the bank account balance remains unaffected.

Hope that helps!