The Easy Guide to Rectify QuickBooks Balance Sheet out of Balance

A balance sheet in balance always shows Total Asset equal to the sum of Total Liabilities and Total Equities. Any changes or differences in it make QuickBooks balance sheet out of balance. The balance sheet gets unbalanced when a user incorrectly enters or links a transaction. On the occurrence of this error, you will see that the sum of total liabilities and equities does not match with the total assets. However, the troubleshooting steps given in the next section of the blog will help you resolve the QuickBooks balance sheet issue, so read carefully.

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What causes the difference in QuickBooks balance sheet?

Following are some possible reasons behind this balance sheet error:

1. Entering transactions against the wrong invoice.
2. Having a discount item on an invoice.
3. Using a multi-currency feature.
4. The entered transactions are incompatible.

Quick Ways of fixing QuickBooks balance sheet

Solution 1. Use an Accrual basis to run the QuickBooks report

1. Open QuickBooks, go to the Reports menu, and choose Company & Financial.
2. Select Balance Sheet Summary and then click Customize Report.
3. Choose the Display tab and click Accrual under the Report Basis.

If the balance sheet is out in accrual basic, there is some damage to the company file, rebuild it first. Here’s How:

1. Go to the QuickBooks File menu, choose Utilities and click Rebuild Data.
2. Wait and let the tool run to repair the data and click OK once it finishes.
3. Select the File menu again, select Utilities and click Verify Data.
4. If QuickBooks find an issue in the company file, click Rebuild Now.

If the balance sheet is out on a cash basis, proceed to the next solution.

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Solution 2. Find the exact date where the QuickBooks balance sheet went out

1. Go to the QuickBooks Reports menu and click Company & Financials.
2. Click Balance Sheet Summary and then Customize Report.
3. Move to the Display tab and click All from the Dates dropdown.
4. Proceed to the Report Basis section, click Accrual if your balance sheet is out in Accrual. Else, click Cash.
5. Now, proceed to the Columns section and select Year from the Display columns by dropdown.
6. Click OK and match Total Assets to Total Liabilities & Equity to find when the balance sheet went out.
7. Now that you know the year where the balance sheet went out, repeat the same process, and track down to the exact date.
8. To find Month, scroll the Display columns by dropdown and click Month.
9. After that, choose Week from the dropdown and, at last, select Day.

• Next, find the transaction that is making the balance sheet out of balance.
• Re-date the transaction that is making the balance sheet out.
• Finally, delete the transaction and then re-enter it.

We are full of hope that the procedure given above will help you fix the QuickBooks balance sheet out of balance error. If you are having confusion or are stuck with the same issue, call us on our toll-free number +1 800-579-9430 and speak to certified QuickBooks professionals.

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