QuickBooks is a prominent accounting software that helps you in managing your business. It comes with hundreds of accounting features that can be very helpful for you in growing your business. However, there are so many functionalities or processes that you may not be aware of. Keeping such things in my mind, we at getsupportnumber, provide all the latest news and help articles to make QuickBooks more convenient for you. In this article, we will be discussing about how to fix a balance sheet that’s out of balance in QuickBooks Desktop.
You should make sure that your total match with your total liabilities on your balance sheet. If they are not matching with each other, we are here to help you out in such situations.
Tip: You may find the Balance reports can be a bit complex to understand. It’s advised to contact your accountant or bookkeeper for help. If you don’t have an accountant, you can contact our QuickBooks Support department.
|Important: There are possibilities that you have made changes in transactions to fix the issue, ensure to create a backup of your company file before continuing.|
Steps To Fix A Balance Sheet That’s Out Of Balance In QuickBooks Desktop
Step 1: Run the report in accrual basis
Run the report in accrual basis if you haven’t done it before.
- From the main menu of QuickBooks, go to Reports > Company & Financial and then select Balance Sheet Summary.
- Click on Customize Report.
- Navigate to the Display tab, and from the Report Basis, select Accrual.
- Click on OK.
You need to rebuild your QuickBooks company file, if the balance sheet is out of balance in accrual basis. If the balance sheet is out of balance in cash basis only or it is out of balance even after rebuilding, go to step 2.
|Important: You need to check whether the balance sheet is of balance in accrual only basis, or both cash and accrual basis.|
Step 2: Find the date when your balance sheet went out of balance
You can find out the transaction or the transaction causing the issue, locate the date while this report went out of balance.
- From the main menu, go to Reports > Company & Financials.
- Click on Balance Sheet Summary and then select Customize Report.
- Navigate to the Display tab and select All from the Dates drop-down options.
- Open the Report Basis section. Select Accrual if your balance sheet is out of balance in accrual only. If not, select Cash.
- Go to the Columns section and from the Display columns, click on Year. Click on OK.
- Do a comparison between the Total Assets to Total Liabilities and Equity. Check if your balance sheet becomes out of balance.
Once the year is identified, follow the below-mentioned steps to reduce the exact date.
- Perform the step 1 again but this time, you have to select Month from the Display column
- Once the month is identified, perform steps from 1 to 6 again. Select Week
- Perform the same steps again and this time, select Day.
- Now, you have all the required information about when the report went out of balance. Go to the 3rd
Step 3: Find the transactions that are making your balance sheet out of balance
Open a Custom Transaction Detail report for noted date.
- From the main menu, go to Reports > Customer Report and then Transaction Detail.
- From the Modify Report window, identify the Report Date Range section. Provide the date on which the report went out of balance under the From and to
- Navigate to the Report Basis section. Select Accrual if your balance sheet is out of balance in accrual only. If not, select Cash.
- From the Columns section, remove the checkmark from the Account, Split, Clr, and Class. Choose Amount Doing this will allow you to read the report easily.
- Select the Paid Amount
- Click on OK.
- Make sure that the ending balance in Paid Amount section is same as the amount which is out of balance. Check out the report to locate the transaction or transactions.
If the transaction couldn’t be identified, you need to perform advanced troubleshooting for balance sheet issues.
Step 4: Re-date the transactions
- When you identify the transaction or transactions due to which the issue is occurring. You need to change the dates on them. Now, make changes in the date on each transaction to a day 20 years.
- Save each transaction.
- Refresh the report, if the correct transactions are identified, the Paid Amount column should become zero.
- Identify the transactions that are dated for future and date them as per the original date again. Note: Re-dating will re-link the transactions and your issue may get resolved.
If the issue is still around, go to the next step:
Step 5: Delete and reenter the transactions
If you still face issue even after changing the dates on the transaction or transactions, you need to remove and then re-enter them.
Reach Us For 24/7 QuickBooks Technical Support
Following the steps provided in this article should be helpful for you to manage or fix A Balance Sheet That’s Out Of Balance In QuickBooks Desktop. However, it can become a bit complex to do it or you may find it difficult if you don’t have proper knowledge about QuickBooks. In such situations, you need to get connected with our technical support department by dialing our toll-free QuickBooks Support Phone Number +1-866-701-7446 to get instant support.