Solutions for Balance Sheet Out of Balance in QuickBooks
QuickBooks is perhaps one of the most used accounting software in the world. It is often considered a game changer as it revolutionized accounting. Today this robust software is being used by big companies, medium and small businesses and even individuals.
However, QuickBooks Desktop often has errors as after all it is just a software. But the best part is users can easily fix the issues through various help articles or by taking assistance from QuickBooks support providers.
You may see the following error message on your desktop screen when the Issue of Balance sheet Out of Balance in QuickBooks happens.
Accrual basis of accounting basically records expenses and revenues as they are earned even though there can be changes in cash. Below are the different solutions you can try to fix QuickBooks balance sheet out of balance on an accrual basis.
- Troubleshoot basic data damage
- Resolve manually the transactions responsible for the balance sheet that is out of balance.
Step 1. Switch the report to accrual basis
Checking whether the balance sheet is out of balance in both accrual and cash basis will help determine how to troubleshoot this issue.
- From the ‘Reports menu‘, you need to choose the ‘Company & Financial‘ option and then choose ‘Balance Sheet Summary‘.
- After that choose the ‘Customize Report‘.
- On the Display tab, select the ‘Accrual under Report Basis‘.
- Finally click on “OK” button.
If the report is out of balance in both accrual and cash basis, your file might be broken. Refer to Resolve a Balance Sheet out of balance in accrual basis for troubleshooting steps.
In the event the report is in equilibrium in accrual although not in cash, it means there are some problems with specific transactions.
Step 2. Understand why QuickBooks balance sheet went out of balance
- First thing to do is go to the ‘Reports menu‘
- Then you have to select ‘Company & Financial‘
- You will get ‘Balance Sheet Summary‘
- Now choose the ‘Customize Report‘
- After this go to the ‘Display Tab‘
- Set the ‘Report Basis‘ to Cash
- Once done you can modify the columns as per the year/month/week/ day the balance sheet went out of balance.
If it is the year:
- First you have to Select All from the ‘Dates drop-down‘
- Now choose the ‘Year‘ from the Display columns
- After this tap on ‘OK‘.
- Compare the ‘Total Assets‘ and ‘Total Liabilities‘ in order to find out the year the balance sheet went out of balance.
If it is month:
- You will come across the ‘From‘ and To ‘Fields section‘ where you have to enter the year balance sheet went out of balance.
- Now select ‘Month‘ from the ‘Display columns‘.
- Tap on ‘OK‘ button.
- Now compare the ‘Total Assets‘ and ‘Total Liabilities‘ in order find the month the balance sheet goes out of order.
If it is week:
- In the ‘From and To’ fields, enter the month your balance sheet goes out of balance.
- From the Display columns, select the ‘Week‘
- Choose ‘OK‘ button
- To find the week the balance sheet goes out of balance, compare the ‘Total Assets‘ and ‘Total Liabilities‘.
If it is the day:
- In the From and To Fields, enter the week your balance sheet goes out of balance.
- Choose the day, From the ‘Display columns‘,
- Click on ‘OK‘ button
- To find the day the ‘Balance sheet‘ goes out of balance, compare the ‘Total Assets‘ and ‘Total Liabilities‘.
Step 3. Track the transaction responsible for QuickBooks Balance sheet out of balance
After you find out the date when the Balance sheet goes out of balance, make a Custom Transaction Detail Report in order to track the transaction which might be causing the issue.
- Go to ‘Reports menu‘ then choose select ‘Custom Transaction Detail Report‘
- In case the ‘Modify Report‘ does not open automatically then select the ‘Customize Report‘.
- Now click on the ‘Display tab‘.
- Now type the date where balance sheet was out of balance in the form of boxes From ‘Report Date Range‘.
- After this set the ‘Report Basis to Accrual‘.
- Under columns you have to ‘Uncheck account‘, split, ‘CLR‘ as well as class.
- You can now ‘Check the amount‘
- Tap on ‘OK‘ button
- Now the amount which went out of balance will appear as the ending balance in the report.
In case you are not able to track down the transaction that is causing the problem then run the below mentioned reports:
3. Check and fix specific data damage
This specific data damage may consist of the journal entries showing amounts without the associated accounts, the balance sheet summary out of balance, discrepancy in the column settings, and differences in the cash and accrual balance sheets. It is manual troubleshooting that can actually resolve the issue.
If still the problem persists then you can call our QuickBooks enterprise support team and seek assistance. The best part is that are certified experts are available 24/7 and provide instant solutions. Our dedicated helpline for your is +1-866-707-7925
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