The balance sheet can be created either in cash or accrual basis for QuickBooks. As a general rule of thumb the total asset should be always equal to total liabilities added to total equity. If the software has any error then you will be reported with the message QuickBooks Balance sheet out of balance. If this is the issue you are encountering then not to worry as this is the topic we will touch upon today.
QuickBooks Balance Sheet out of Balance: Troubleshooting steps
Several troubleshooting steps can be followed to solve this error. The QuickBooks Out of Balance error points to the report of the balance sheet that is not working. Let us discuss the steps to resolve the problems for the accrual basis balance sheet.
The most common error of accrual basis balance sheet is the income or expense account has the balance but does not allow a transaction that adds up to the balance. To solve this error here are several troubleshooting steps:
- Try to find out why the balance sheet is out of balance by calculating the amount.
- Try to find out the account problem.
- Account identification is to be tested.
- To the problem account record a check for $0.1.
- Run Rebuild data utility.
- After the test result delete the previously created check.
Since now that we have touched upon some major problems that needs to be cross checked, thus here is the thorough detail of what needs to be done.
Step 1: Find out why the balance sheet is out of balance by calculating the amount.
Create a standard balance sheet by following the steps.
Reports->Company & Financial->Balance Sheet Standard
Now calculate the amount by which your balance sheet is out of balance. Do not forget click “Modify Report” button, set “Dates to All” and “Report Basis” to “Accrual”
Step 2: find out the account problem
Now “Export” your “Chart of Accounts” by following the given path
File->Utilities->Export->Lists to IIF Files
From the “Export” window click on the “Chart of Accounts” checkbox and click “Ok”.
Through this export process, you will create delimited IIF files; in Ms. Excel open this file. The excel file will show you the Name and OBAMOUNT column, now try to find out where the mismatch is happening. In the meanwhile figure if you are still complaining about, QuickBooks Balance sheet out of balance then here is what you will have to do next.
Step 3: Account identification is to be tested
Now go back to QuickBooks and open the “Chart of Accounts” and find out the account that you have identified in Ms. Excel double click on that to create a QuickReport. Once again set the “Dates” as “All Dates” if there is no transaction in this account then try solving the error with step 2. You will successfully find an account that is showing balance in the “Chart of Accounts” but does not add up to the transaction.
Step 4: to the problem account record a check for $0.1
For $0.1 record a check to the problem account that was previously identified. Follow the below-mentioned path.
Click Banking-> Write Checks
On the Expense, tab enters the previously identified account.
Step 5: Run Rebuild data utility
Click Files->Utilities->Rebuild Data now run “Rebuild Data Utility”.
This utility will resolve the out of balance problem by matching the transaction with the account that has balance.
Step 6: After the test result delete the previously created check
In step 4 the checks that you have created delete those. Again open you “Chart of Account” by following the below-mentioned path:
Company->Chart of Accounts
Find out the problem account.
If the account that you have identified is a balance sheet account then double-click on that account to QuickZoom into the account register. Now find out the check for $0.1 and delete it by following the path Edit -> Delete.
If it is an income statement account, then also follow the same steps discussed above.
Follow the steps discussed in step 1 to create a standard balance sheet and make sure to set Dates to all and Report Basis as Accrual.
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