The QuickBooks Balance Sheet, when properly organized, should show that Total Assets equal the sum of Total Liabilities and Total Equity. However, incorrect transactions or mislinked ones can result in an unbalanced Balance Sheet in QuickBooks. To address your concerns, we’ve put together a comprehensive guide to fixing Balance Sheet out of balance in QuickBooks. We’ve included some tips at the end to help you avoid future issues that could cause an unbalanced sheet. In this guide, you’ll find answers to any questions and solutions to any problems you may encounter.
Tips: Balancing your balance sheet can be a complex task. Don’t be afraid to seek help from an expert! If you have a bookkeeper or accountant, consider reaching out to them for assistance. If you don’t have one, we’re here to help you find a professional who can guide you through the process. Trust us, getting it right can lead to some exciting insights and greater peace of mind.
Reasons to Cause Balance Sheet Out of Balance in QuickBooks
- Entering incorrect amounts or linking to the wrong account can lead to an unbalanced balance sheet.
- Linking transactions to the wrong account can result in an unbalanced balance sheet.
- If a transaction isn’t recorded in QuickBooks, it won’t appear on the balance sheet and can cause it to be out of balance.
- Double-counting transactions due to duplicates can lead to an unbalanced balance sheet.
- Removing transactions from QuickBooks will result in them not appearing on the balance sheet, causing it to be out of balance.
- Starting with incorrect balances in QuickBooks can cause the balance sheet to be out of balance.
- Entering transactions with outdated dates in QuickBooks can result in an unbalanced balance sheet.
- Importing transactions incorrectly into QuickBooks can lead to an unbalanced balance sheet.
Troubleshooting of QuickBooks Balance Sheet is off balance
Step 1: Run the Report in Accrual Basis
To ensure accuracy, it’s crucial to run your balance sheet report in accrual basis. Here’s how to do it:
- Go to the Reports menu and select “Company & Financial.”
- Choose “Balance Sheet Summary.”
- Click “Customize Report.”
- On the Display tab, select “Accrual” under “Report Basis.”
- Click “OK.”
If your balance sheet is still out of balance after switching to accrual basis, consider rebuilding your company file. However, if the imbalance is only present in cash basis, or remains after a rebuild, proceed to step 2.
Note: It’s important to determine whether the imbalance is present in both cash and accrual basis or just accrual basis. You’ll need this information for later steps.
Step 2: Determine the Date of Imbalance
To identify the source of the problem, it’s crucial to determine the date when your balance sheet went out of balance. Here’s how:
- Go to the Reports menu, select “Company & Financials,” then choose “Balance Sheet Summary.”
- Click “Customize Report.”
- On the Display tab, select “All” from the “Dates” dropdown.
- In the Report Basis section, select “Accrual” if the imbalance is only present in accrual basis, or “Cash” if it’s present in both.
- In the Columns section, select “Year” from the “Display columns by” dropdown.
- Click “OK.”
- Compare your Total Assets to Total Liabilities & Equity. Look for the year when your balance sheet goes out of balance.
Next, follow these steps to narrow down the exact date:
- Repeat steps 1 through 6. This time, select “Month” from the “Display columns by” dropdown.
- Once you find the month, repeat steps 1 through 6 again. Now, select “Week.”
- And finally, once you find the week, repeat the steps one last time. This time, select “Day.”
Now that you have the date of imbalance, move on to step 3.
Step 3: Track Down the Culprit Transactions and Fix Your Balance Sheet
Unleash the power of your Custom Transaction Detail report to find the transactions that are causing your balance sheet to be out of balance.
- Navigate to the Reports menu and select Custom Report, then Transaction Detail.
- On the Modify Report window, enter the date that your balance sheet went out of balance in the Report Date Range section.
- Choose the appropriate Report Basis. If your balance sheet is out of balance in accrual only, select Accrual. If not, select Cash.
- Streamline the report by unchecking Account, Split, Clr, and Class, and selecting Amount and Paid Amount in the Columns section.
- Click OK to generate the report.
- The Paid Amount column’s ending balance should match the amount that is out of balance.
- Scan the report to pinpoint the transaction or transactions that add up to the Paid Amount and voila! Your balance sheet is back in balance.
If the transactions remain elusive, seek the assistance of a Data Services Expert for expert-level troubleshooting of your Balance Sheet issues.
Step 4: Reset the Transaction Dates
To resolve the imbalance, follow these steps to change the dates of the problematic transactions:
- Identify the transactions causing the issue and take note of their current dates.
- Edit the date on each transaction to 20 years in the future.
- Save each transaction.
- Refresh the report and check if the Paid Amount column is now zero.
- If the Paid Amount column is zero, reset the transactions back to their original dates. This step can help re-link and repair the transactions.
- If the Paid Amount column remains non-zero, proceed to Step 5.
Step 5: Delete and Re-enter Transactions
If changing the dates doesn’t fix the issue, take the following steps to delete and re-enter the problematic transactions:
- Delete the transactions causing the imbalance.
- Re-enter the transactions with the correct information and dates.
- Check the report again to make sure the Paid Amount column is zero and your balance sheet is back in balance.
Well done for taking the time to read through our blog, we trust you’ve found a solution to fixing the balance sheet that’s out of balance in QuickBooks. However, if you’re still feeling a bit uncertain about the troubleshooting process, let us lend a hand. Simply give us a call at +1-888-704-1357 to connect with a QuickBooks specialist who will expertly guide you through the resolution. Don’t let the stress of balance sheet out of balance in QuickBooks weigh you down, get in touch with us today and let us take care of it for you.