Hello Ian
When I have a client whose main operating bank account os an overdraft account i will always set it up as an Asset Bank A/c & not a Liability account.
I suggest that you do the following -
Create a new Asset bank account for the o/d a/c. Make it the first bank account in the list. You may need to reallocate some account numbers first to do this.
Reconcile the current O/D Liability Account. If there are any unreconciled payments create a Gen Journal to Cr the old liability a/c and CR the new Asset a/c. If there are uncleared deposits do the opposite.
Re-reconcile the liability account which should now have a zero balance.
Mark this account as Inactive.
Use the new a/c for your transactions on the O/D account. it will now show as the default bank account. Do not wory about the fact that it has a credit or -ve balance. Your accountant will not have a problem.
Cheers
David
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