A Complete Guide to Properly Address QuickBooks balance sheet out of balance issue
When in the correct order, the balance sheet displays Total Assets equals the sum of Total Liabilities and Total Equities. Any differences in it can make QuickBooks balance sheet out of balance. This usually happens because of entering transactions against the wrong invoices. However, following a step-by-step procedure can help you balance it. The remainder of this blog will guide you on balancing a balance sheet in QuickBooks, so read carefully until the end.
For further assistance on the QuickBooks balance sheet out of balance issue, call us on our toll-free number (800)-579-9430 and talk to the certified QuickBooks expert’s team
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Reasons why your QuickBooks balance sheet went out of balance?
Following is the list of prominent factors behind differences in the QuickBooks balance sheet:
1. The entries are not updated correctly in QuickBooks.
2. The user has entered a journal entry in the Credit Memo.
3. The payment is recorded against incorrect invoices.
4. QuickBooks balance sheet is not refreshed.
5. Date and time are incorrect on your device.
6. Possible damage to the company file data.
Let us learn about ways to balance the balance sheet in the next section of the blog.
Solutions to correct errors on the balance sheet in QuickBooks
Solution 1. Use an Accrual basis to run the report in QuickBooks
1. Start QuickBooks Desktop and go to the Reports menu.
2. Select Company & Financial, then click Balance Sheet Summary.
3. Choose Customize Report and move to the Display tab.
4. Click Accrual under Report Basis and then OK.
If your balance sheet is out of balance on accrual basis, rebuild your company file by following the steps given below:
1. From the File menu, choose Utilities and click Rebuild Data.
2. When the QuickBooks information window appears, click OK and follow the prompt steps to save a backup.
3. Wait till the tool repairs the company data. Once it completes, click OK.
4. Go to the File menu, select Utilities, and click Verify Data.
5. It detects company files for remaining data issues. If it finds, click Rebuild Now.
If the balance sheet is out on cash basis, follow the next solution.
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Solution 2. Search the year showing different balance
1. Open QuickBooks Desktop and select the Reports tab.
2. Choose Company & Financials, then Balance Sheet Summary, and click Customize Report.
4. From the Display tab, scroll the Dates drop-down menu and click All.
5. Go to the Report Basis section.
6. Choose Accrual if the balance sheet is out of balance in Accrual, else click Cash.
7. From the Columns section, scroll the Display columns menu and click OK.
8. Now, match Total Assets with Total Liabilities & Equity.
9. Find where the balance sheet went out of balance.
10. After finding the year, narrow the search to the month and date where the balance sheet went out.
11. Next, find the transaction that males balance sheet out of balance.
Change the transaction date, delete and enter it again.
If you get stuck at any steps to fix the QuickBooks balance sheet out of balance issue, connect with the certified QuickBooks expert’s team by dialing 800-579-9430.
