Investigate a Negative Credit Card Balance
A negative card balance in bookkeeping software can represent a real credit, a display convention or a recording error. Start by checking how the software presents credit card liabilities and compare the balance with the card statement for the same date. Do not assume a minus sign always means the business owes money.
Check whether the card issuer owes the business
An overpayment or refund can create a credit balance with the card provider. If that happened, the records should reflect the actual credit and its source. A refund received after paying the statement in full is one common explanation. Save the statement and connect the refund to the original purchase where possible.
Investigate missing charges and duplicate payments
If payments were imported but purchases were not, the books may show an artificial credit. A duplicated card payment can have the same effect. Also check the opening balance and whether the card was set up as the correct account type. Compare the transaction history before making a category or balance adjustment.
Reconcile the entire statement period
Use the statement beginning balance, purchases, credits, fees and payments to explain the ending amount. A bank payment should match the reduction in the card liability rather than create a second expense for purchases already recorded. After correcting an error, review both the card and the bank account. If the statement itself is unclear or disputed, resolve that issue with the issuer while preserving the accounting evidence.