Is your balance sheet in QuickBooks showing different balance on asset and liability sides? Balance sheets should always have the sum total of asset side equal to the sum total of the equity and liability side. If the balance sheet doesn’t show the asset and liability side equal, then there might be certain error hiding somewhere. Well, if you have stumbled upon resolve a balance sheet out of balance error in QuickBooks, then need not to worry, as we will help you to fix the issue and tally your balance sheet.
However, if being a QB user you find this issue to be way too difficult to sort out, then you can speak to our QuickBooks enterprise support team. Make a call to us at our toll-free number i.e. +1-844-521-0490, and our team of experts and bookkeeping professionals will fix the error for you.
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What is balance sheet out of balance error?
In a balance sheet, the total amount of assets should be equal to the total amount of liabilities, and when the amount doesn’t match, it means that the balance sheet is out of balance. This error means that there is a contrast between the aggregates of assets and liabilities. This error can be seen due a number of reasons, which are discussed later in this post.
Why your QuickBooks balance sheet is showing out of balance?
Before fixing the issue, it is very much important to know the actual reason behind it. There can be three possible reasons, why the balance sheet showed out of balance:
- Damaged data file can be of the reasons.
- The second reason that made to the list is that if the user enters or links a transaction which is not compatible.
- And the last reason can be the use of multi-currency.
Now that you know the reasons why you might have encountered this issue, it would be easy for you to tackle this issue.
Important Points to remember
Before jumping on to the solutions for the error, make sure that you go through the critical points enlisted below:
- The very first thing that the user has to keep in mind is to create a backup of the company file.
- The user is also required to check if the issue is recurring.
- And the last thing is in case of multi-user environment, the user must make sure to troubleshoot the server computer.
Quick Troubleshooting steps
Before heading to the main procedures, the user can carry out a few basic troubleshooting steps namely:
- The user needs to modify the reported total by the year and then check if the balance sheet is back in balance
- Also, the user needs to log out the QuickBooks file and log back in. Also, check if the balance sheet is back in balance
- The next step is to back up the QuickBooks company file before following any troubleshooting steps
- In case the user is working in a multi user environment, then it might lead to damage to the company file and the balance sheet might go out of balance. The user can fix the data damage and use the main system from where the file is being hosted
- Also, verifying and rebuilding QBWIN logs before proceeding is recommended
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Resolve a Balance Sheet out of balance error in QuickBooks Cash basis
Following are the best steps to resolve a balance sheet out of balance in QuickBooks
Solution 1: Troubleshooting data damage
- First of all, the user is required to fix the data damage issue with the help of the troubleshoot option.
- After that, look for the errors and rectify them by exploring the qbwin.log file.
- The next step is to run the balance sheet report once again and then verify the balance.
- And lastly, the user is required to make an attempt to narrow down the time window, for finding out when the issue occurred.
Solution 2: Resolve the Basic data damage
- After that, reopen the balance sheet and then check the balances. We expect that the balance would tally now.
Solution 3: Find out the type of transaction that is putting balance sheet out of balance
Transaction Type 1: Sold or returned inventory or discounts.
Transaction Type 2: Other than customer level, discount entered at a place
Transaction Type 3: A journal entry that is linked to the credit memo
Transaction Type 4: Eccentric account transactions.
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Solution 4: Look for the transaction which is causing QuickBooks balance out of balance error
Step 1: Note down the date on which the balance sheet showed out of balance
- First of all, in the Reports menu > Select company & Financial > balance sheet summary.
- The next step is to select the Customize Reports in the dialog box.
- And then, click on the Display tab.
- After that, the user is supposed to Rearrange the report basis.
- Now, select the date when the balance sheet showed out of balance.
Filter by year
- Firstly, the user is required to select all from the Date drop-down menu.
- After that, select the year from the Display columns.
- The next step is to click on OK button.
- And the last step is to compare the total assets and liabilities to find the month the balance sheet goes out of balance.
Filter by Month
- The user is required to mention the year where the balance went out of balance, from the field.
- Now, the user is required to select Month from the Display columns.
- After that, hit Ok.
- And the last step is to compare the balance of total liabilities and total assets.
Filter by Week
- The user is supposed to enter the month in which balance sheet was out of balance.
- After that select the week in the Display columns.
- Move ahead, by hitting OK.
- Compare the balance for finding the week where the balance sheet mismatched.
Filter by Day
- The user has to Enter the week that showed wrong balance.
- After that, the user should select the Day from the Display columns.
- Tap on OK.
- And lastly, again compare the balance of total assets and liabilities, to look for the day where the balance sheet was out of balance.
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Step 2: Now, look the transaction causing the issue
Now the user has reached the due date at which the balance sheet mismatched, the user is supposed to create a custom transaction detail report to spot the transactions that caused the bug.
- Firstly visit Reports menu
- After that select Custom Transaction Detail Report
- If any case the Modify Report does not open automatically then choose the Customize Report.
- Hit a click on the Display tab.
- After that type the Date where the balance sheet was out of balance in the form of boxes.
- After this set the Report Basis to Accrual.
- Now under columns you have to Uncheck account, split, ‘CLR‘ as well as class.
- Check the amount and hit a click on OK button
- Now the amount that was gone out of balance will appear here as the ending balance in the report.
If the user is still unable to spot the faulty transactions, then run the reports stated below for the same date:
- Customer report
- Vendor report
- Journal report
- Other transactions report
Step 3: Re-date the transactions
- After spotting the transaction causing the issue, the user is recommended to change the date. Also make a note of their current dates, followed by editing the date on each transaction to a day 20 years in the future.
- The user is then required to save each transactions.
- Followed by refreshing the report, in case the user found the correct transactions, the paid amount column will then be zero.
- The last step in the process is to locate the transactions that were dated to future and then date them back to their original date. This re-dating step basically re-links the transactions and can repair them.
If this failed to work, then move to the next step.
Step 4: Remove and re-enter the faulty transactions
In case the step failed to work, then the user can completely remove and re-enter the transaction. This would help in fixing the issue.
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Winding up!
The above stated solutions can work wonders in fixing the QuickBooks balance sheet out of balance issue. The user can follow any of the above stated solutions to get rid of the issue and tally the balance sheet. We expect that the methods enumerated above would fix the error. However, if the balance sheet continues to show difference in the balance, then the user should consult some professional with renowned experience. You can also make a call at our toll-free number i.e. +1-844-521-0490, and our team of experts and certified professional will help you to fix the problem in a single call.
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