How to Get Rid of QuickBooks Balance Sheet Out of Balance issue?

Posted 8 months ago in TECHNOLOGY.

A balanced QuickBooks sheet shows Total Asset equal to the sum of Total Liabilities and Total Equities. When any transaction is linked against the wrong invoice, it makes QuickBooks balance sheet out of balance.

How to Get Rid of QuickBooks Balance Sheet Out of Balance issue?

A balanced QuickBooks sheet shows Total Asset equal to the sum of Total Liabilities and Total Equities. When any transaction is linked against the wrong invoice, it makes QuickBooks balance sheet out of balance. It usually happens because of disparities in the balance sheet. It is crucial to have a balance sheet as it shows the financial status of the organization. However, we can fix this issue by finding the wrong transaction, deleting it, and re-entering it. This blog will guide you through the complete process to fix QuickBooks balance sheet errors, so read carefully.

How can one resolve QuickBooks balance sheet out of balance permanently? If this question is also bothering you, you are at the right place. Call us on our toll-free number +1-888-704-1357 and speak to certified QuickBooks professionals for effective guidance

Factors that cause QuickBooks balance sheet errors

Following are the main causes that lead to the issue:

  • The user has not refreshed or updated the balance sheet.
  • The company file containing all transactions is damaged.
  • The transactions are wrongly linked in the report.
  • A payment was entered against the wrong invoice in the balance sheet.

Solutions to Troubleshoot balance sheet issues in QuickBooks

Solution 1. Run the balance sheet report in QuickBooks on an accrual basis

To run the report on an accrual basis:

  • Start QuickBooks and go to the Reports menu.
  • Click Company & Financial and select the Balance Sheet Summary option.
  • Choose Customize Report, proceed to the Display tab, and click Accrual under Report Basis.

If QuickBooks balance sheet is out in accrual basis, rebuild your company files. If it is out of balance on a cash basis or even after the rebuild, follow the troubleshooting steps given below to find the date when the balance sheet went out.

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Solution 2. Identify the exact date when QuickBooks balance sheet went out

Finding the date will help you locate the transaction making balance sheet out of balance:

  • Open QuickBooks, click the Reports menu and choose Company & Financials.
  • Select Balance Sheet Summary and then the Customize Report option.
  • Select the Display tab, go to the Dates dropdown and choose All.
  • Head to the Report Basis section and choose Accrual if your balance sheet is out in Accrual only.
  • If the balance sheet is out in cash only, choose Cash.
  • Now, go to the Columns section, scroll the Display columns by dropdown, and click Year.
  • Now, compare the sheet and find where the balance sheet went out.
  • Go back to the Display columns by dropdown and click Month.
  • Now, proceed to the Display columns by dropdown and select Week.
  • After finding the Month and Week, follow the same steps to find the Day.
  • Now that you have the exact date, find the transaction making differences in the balance sheet and delete it. 
  • Now, enter the transaction against the correct invoice.

We know it is difficult to solve the QuickBooks balance sheet out of balance issue. We are hopeful that our blog helped you fix it. If you need any help, call us on our toll-free number +1-800-579-9430 and talk to certified QuickBooks professionals.

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Ashley Graham

Living in United States

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