QuickBooks Balance Sheet Out of Balance or Balance Sheet Report Out of Balance

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 do not worry as this is the topic we will touch upon today.

The balance sheet can be created either on a 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.

QuickBooks Balance Sheet Out of Balance: Troubleshoot

Several troubleshooting steps can be followed to solve this error. The 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 an 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.

Now we have touched upon some major problems that need to be cross-checked, thus here is the thorough detail of what needs to be done.

How to Fix QuickBooks Balance Sheet Out of Balance Issue

Follow the mentioned steps to fix when QuickBooks balance sheet is out of balance issue.

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 to click the “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, the QuickBooks Balance sheet being 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 a 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, the 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 a 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 your “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 for all and Report Basis as Accrual.