A Course of Action to the QuickBooks Balance Sheet is Out of Balance

A QuickBooks Balance Sheet is out of balance, which appears on the screen due to a mismatch in the total liabilities and total assets on your Balance Sheet. The reasons why this happens are the presence of an inventory returned, payment has been recorded against the invoice, or an invoiced discounted product is returned. Go through the blog completely and learn the methods to overcome this situation.

If you are unsure whether you can resolve the issue through the steps, consult a professional. Give a ring to +1.833.802.0002 and get directly connected with our best Experts.

Potential Reasons Why the QB Balance Sheet Goes Out of Balance

Take an overview of the blog that explains the reasons why the QuickBooks balance sheet goes out of balance.

Due to the presence of an inventory returned by the customer or a discount item.
Recorded payment is against the invoice.
It occurs when an invoiced discounted product is returned.

Effective Troubleshooting Steps For a QuickBooks Balance Sheet is Out of Balance

Below are some steps that would be sufficient to help you correct errors on a balance sheet in QuickBooks. Let me take you through each step and help you with the implementation.

Step 1: Use the reports on an accrual basis

Go to the Reports menu.
Choose the Company & Financial option.
Click on Balance Sheet Summary.
Tap on Customize Report.
Head to the Display tab.
Click Accrual under the Report Basis.
Pick OK.

Step 2: Look for the date when your balance sheet went out of balance

Go to the Reports menu.
Choose Company & Financials.
Click on Balance Sheet Summary.
Tap Customize Report.
Head to the Display tab.
Hover over the Dates dropdown.
Choose All.
Head over to the Report Basis section.
If you find that the sheet is out of balance in the Accrual only:
- Choose Accrual.
Conversely, click Cash.
Head to the Columns section.
Hover over the Display columns by dropdown.
Choose Year, followed by OK.
Do a comparison between your Total Assets and Total Liabilities & Equity.
Look for the date when your balance sheet goes out of balance.

Once you have the year, go through the same instructions to determine the exact date.

You need to repeat the steps from 1 to 15 and then go to the Display columns by dropdown.
Choose Month.
After finding the month, again repeat steps from 1 to 15.
Choose a Week.
After finding the week, follow the steps again from 1 to 15, and then choose the Day.
Now that you have the date when your balance sheet went out of balance after implementing the steps above, let’s proceed to the next step.

Step 3: Figure out the transactions that led your balance to go out of balance

Go to the Reports menu.
Choose Custom Report.
Click on Transaction Detail.
Head to the Modify Report window.
Hover over the Report Date Range section.
Go to the From and to fields.
After this, you need to fill in the date when the report went out of balance.
Head to the Report Basis section.
Choose Accrual if you find that the sheet is out of balance in Accrual Only.
Conversely, click Cash.
Head to the Columns section.
Untick the Account. Split, Clr, and Class.
Tap on Amount.
This will make the report readable.
Tap on the Paid Amount column.
Click OK.
Lastly, the balance should be equal between the Paid Amount and the remaining balance.
Now, go through the report to look for the transaction or transactions that add up to this amount.

The Bottom Line

We hope that these solutions can help you fix the QuickBooks balance sheet is out balance issue. If you still get stuck, don’t hesitate to contact an expert. Dial +1.833.802.0002 to consult a Pro Advisor.

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