Being an accounting software, QuickBooks is known for a lot of amazing features and one amongst them is creating a balance sheet quickly and easily. But then, there are scenarios when due to multiple reasons your software keeps showing the pop-up of “QuickBooks Balance Sheet Out of Balance.” This is an error in your balance sheet feature of software. And it arises when Total Asset is not equal to the sum of Total Equities and Total Liabilities.
If this keeps happening, it will take up a lot of time and resources which will not be pleasing at all. So, here is everything you should know about the QB error QuickBooks Balance Sheet Out of Balance.
The 4 reasons for the Balance sheet out of balance error in your QuickBooks?
Here are some reasons why your QuickBooks is malfunctioning. Figure out which of these causes is affecting it.
- When the user mistakenly enters any offsetting journal entry (GJE) towards an open Credit Memo. When both these things are linked in the balance sheet, it creates an imbalance. And then your QB Balance Sheet Out of Balance problem gets displayed.
- It also happens when a person returns the inventory which is present in the invoice.
- The same happens when an invoiced discounted product is also returned.
- When you have recorded a payment for your inventory, against an invoice, and then the QB user punches an entry in the credit tab or discounted tab of the sheet.
What are the ways to fix Balance Sheets Out of Balance of QuickBooks?
After determining the cause of this problem, here are the best 5 ways by which you can fix it:
Solution 1: Try re-entering by deleting the transaction
One of the easiest and quickest ways to get this error fixed is by simply re-entering the transactions after deleting them. At times it happens that a mismatch or entering mistake can lead to this error.
Solution 2: Check the accuracy of the entries
It is better to be double sure about the entries. All the details mentioned in all the columns should be accurate. Follow these steps to ensure accuracy.
- Go to the “Report Menu” and then click on “Company & Financial button.”
- Then from the drop down, select the “Balance Sheet Summary” button.
- From the window that opens on your screen, select the “Customize report” button.
- Then you will have to click the “Customize Report” button.
- On the displayed window you will have to select “Accrual” which is given under “Report Basis.”
- Once done, click on Ok
This will fix the problem!
Note: If you figure out that QuickBooks Balance Sheet Out of Balance error is due to the accuracy. Then you must rebuild and recheck the company file to prevent such problems from happening in future.
Solution 3: Try re-dating the transactions
This is one of the initial steps that you should follow because it is quicker and easier than others. Here is what should be done.
- Simply have a look at your balance sheet and try to figure out the transaction(s) that are causing this problem.
- Once you find them, simply change their dates.
- There is a trick to do this! Just make a note of the current dates that are there on the balance sheet against those entries.
- Then edit them to 20 years in future.
- Once done, save the transaction.
- After this, refresh the entire report. If you did find the correct transactions, check the paid amount column because it will be displaying 0 now.
- Now, if everything has gone as per the steps, you will have to just date them back to the original ones.
Note: By following these steps, your QuickBooks Balance Sheet Out of Balance will come back in place. It re-links all the incorrect transactions and also repairs them.
Solution 4: Figure out when QuickBooks Balance Sheet went Out of Balance
The next way to find out the cause of this problem is to figure out when your balance sheet went out of balance. Here are the steps to follow:
- In this solution, you will have to open the “Reports menu” and select “Company & Financials.”
- From the drop-down menu, you will then have to select “Balance Sheet Summary.”
- Select the dates dropdown in the tab on your screen and “Select All.”
- Then go to the “Report Basis” tab and select “Accrual” if your QB balance sheet is out of balance in accrual only. Otherwise, click on “Cash.”
- Then go to the column section, click the dropdown, and select the year.
- Now click on the “OK” button.
- Now do the comparison between Total Equity and Liabilities against the Total Assets to determine the date when your balance sheet went out of balance.
Note: Now, when you find the correct year, do the same steps for the month, week, and then date. All you need to do is select the particular column to narrow down the search.
Solution 5: Determine the transaction that is causing this problem
To fix this problem, try running a detailed check on the latest transactions. Here is what can be done.
- Start by going to the “Report Menu” and then select “Custom Report.”
- Then go to “Transaction Details.”
- There will be a “Modify Report Window” where you can report the range of dates in the given section.
- Now enter the date that you think or have determined that Balance Sheet Out of Balance of QB.
- Then go to the “Report Basis” section and select “Accrual” or “Cash” based on the problem you had figured out.
- Now in the “Column Section”, just uncheck “Account”, “Split”, “CLR”, and “Class”.
- Just select “Amount” because this will help in reading and understanding the report.
- Select the “Amount Paid” column.
- Click on “Ok”
Even after trying all the above-given solutions, you are not getting the fruitive result; we suggest you try the advanced troubleshooting method of QuickBooks Balance Sheet Out of Balance. And if the problem still persists, connect with an Asquare Cloud Hosting Helpline Number for assistance.