QuickBooks Balance Sheet out of Balance denotes the financial position of your company at a given point of time. This report incorporates the total assets, liabilities, and equity of your company at any particular point of time. However, you can get an error message that states, “out of balance balance sheet in QuickBooks.” When this error occurs, your total asset does not match your total liabilities on your balance sheet. In this post, we will discuss the possible reasons behind the unbalanced sheet and how to troubleshoot them.
What is the QuickBooks Balance Sheet out of Balance?
QuickBooks balance sheet is out of balance issue arrives the total asset is not equal to the sum of the total liabilities and equities in QuickBooks. Several reasons can evoke this issue, and we have listed some of the most apparent reasons in the below-given list:
Data Damage In The QuickBooks Company File:
Most of the discrepancies in the QuickBooks reports are caused due to the data damage in the QuickBooks company file. Lost data integrity in the application can make your out of balance balance sheet in QuickBooks.
When Using Multi-Currency Feature:
When using the multi-currency mode, you can get an error if the exchange rate of the payment is different from the exchange rate from when the invoice was created. It will cause the gain or loss to not reflect in the balance sheet.
Improperly Entered Transactions
When your transactions are not properly linked or entered, you may get your qb balance sheet out of balance application. To resolve this issue, you need to identify and fix such transactions incorrectly.
Things you need to Consider before Troubleshooting “Balance Sheet in Cash/accrual Basis out of Balance” issue
Before getting started with the troubleshooting solutions, you need to check the below-given points:
- First of all, edit your reported total by “year” and check if the issue is resolved.
- Sign out your QuickBooks file and then login again to check if your balance sheet is back in balance.
- Create a backup of your company file so that you can prevent the permanent data loss of your critical financial data.
- The data damage may occur while working in the multi-user mode, causing a out of balance balance sheet issue. To resolve the issue, you need to use the main computer that is hosting the company file.
- Run the verify and rebuild data utility to repair the QBWIN logs.
How to Fix a Balance Sheet that is out of Balance?
Taking backup of your QBW or company file is Prior to resolving the balance sheet out of balance in quickbooks, you need to follow the below-given solutions:
Solution 1: Repair the Basic Data Damage
To repair the data integrity issues in QuickBooks, follow the below-given steps:
- Repair the damaged data using the standard procedure.
- Find and resolve the errors by exploring the qbwin.log file.
- Run your balance sheet again to check your balance and to verify the differences in the amount.
Compress the time window and try to find when did QuickBooks balance sheet does not balance issue occur.
Solution 2. Search the date when the Balance Sheet went out of Balance
To search for the transactions causing out of balance balance sheet, we need to find the date when the report went out of balance.
- Click on the Reports menu and choose Company & Financials.
- Select Balance Sheet Summary and choose Customize Report.
- Within the Display tab, choose All from the Dates drop-down.
- Move to the Report Basis section.
- Select Accrual if the balance sheet is out of balance in accrual. Else, select Cash.
- Move to the Columns section and select Year from the Display column drop-down.
- Click OK and find where the balance sheet went out of balance by comparing the Total Assets to Total Liabilities & Equity.
After finding the year, repeat the same process to get the exact date
- Repeat the above steps and move to Display column drop-down menu and choose Month.
- After finding the month, follow the same steps and reach the Display This time select Week.
- At last, repeat the same process and choose Date from the Display column drop-down.
Now that you’ve found the exact date, follow solution 3 to search the transaction.
Solution 3. Search the Transaction that is making Balance Sheet Report out of Balance
You need to run a custom transaction detail report for the date you find when the balance sheet went out of balance.
- Once again, move to the Reports menu and choose Custom Report.
- Select Transaction detail and get to the Modify Report window.
- Look for the Report Date Range section and provide the date when the report went out of balance in the From and To
- From the Report Basis section, choose the type: Accrual or Cash according to the balance sheet.
- Within the Columns section, un-mark the Account, Class, Split, and Clr.
- Choose the Paid Amount column and click OK.
- The Paid Amount column needs to be equal to the ending balance. Go through the transactions that add up the amount.
Solution 4: Add new Data to the Transactions
- Select the transaction or group of transactions causing the issue. Note down their current date. Then change each transaction date to 5 years next.
- Now, Save all transactions carefully.
- Now, Refresh the balance sheet report. Check Paid amount column showing zero figure.
- Now, Go back to all transactions whose data you have changed. Change all dates into the past noted down the date.
Solution 5: Delete and Recreate transactions
Is Changing data not helping you out in fixing the Error balance sheet out of balance QuickBooks, Well Then try to delete each transaction whose date you have changed last time. Then Recreate each transaction.
Reach Us for quick aid on the balance sheet out of Balance QuickBooks!
This post elaborates on how to fix the unbalanced balance sheet in QuickBooks. However, if you need to get in touch with our qualified QB experts, give us a call on our helpline number 1.800.579.9430. Our expert team will guide you in troubleshooting the QuickBooks balance sheet out of balance in the QuickBooks application.