QuickBooks balance sheet out of balance error [resolve]

QuickBooks is a known accounting software helping companies to manage their accounts. The balance sheet is an important element of accounts. The balance sheet contains the records of the assets and liabilities. It is mandatory for a balance sheet that the sum of the assets should be the same as that of the liabilities. Sometimes you can notice that while creating a balance sheet in QuickBooks, the QuickBooks shows an error indicating that QB balance sheet out of balance. There are various reasons why a user can face the QuickBooks balance sheet out of balance error, like, if you are using multi-currency or data is damaged.

In this blog, we are discussing how can you get rid of the QuickBooks balance sheet out of balance error. We have mentioned all the possible ways that you can opt to get rid of the balance sheet out of balance QuickBooks error.

What is QuickBooks out of balance error?

The out of balance error in QuickBooks usually means that there is a discrepancy or mistake in the way transactions were recorded, resulting in an imbalance in the books. This can occur for various reasons, such as data entry errors, duplicate entries, or incorrect linking of accounts. In simple words, it means that the total debits and credits in a financial transaction or account do not match.

Possible Reasons of QuickBooks Balance Sheet Out of Balance Error 

When any error appears in your system, it certainly has some reasons for its occurrence. We are going to discuss the causes that trigger this QuickBooks balance sheet not in balance error. 

• If you use the feature of multi-currency. 
• This error appears because the data of the company file is damaged. 
• Incompatibility between the linked transactions or the entered transactions.

Methods to Fix QuickBooks Balance Sheet Out of Balance Error

There are different methods that you can use to fix the QuickBooks balance sheet out of balance error. You are needed to follow the steps mentioned in each method. 

Fix the Data Damage

Follow the steps mentioned to know you can fix the data damage. 

• The very initial step is to fix the data damage using the troubleshooting option provided.
• Next, you will need to find the error and resolve the errors that also can be QuickBooks update errors by the qbwin.log file in QuickBooks.
• Now, you will be needed to create the balance sheet again and then check if the balance is the same or not.

• After this, you need to try to narrow down the time prompt to verify which transaction is causing an issue.

Fix the Basic Damage Data

The next solution is to fix the basic data, you are needed to follow the basic steps.

• The very first step is to employ the rebuild of the data and then verify the data.
• Once you are done with the process, you will need to run the balance report again. Check if the balance matches or not. 

Check the Transaction Type 

The next solution is to determine the type of transaction due to which you are facing the QuickBooks balance sheet out of balance. There are four types of transactions that are listed below.

• The first type of transaction is when you sold an item from the inventory.
• The second type of transaction is when you are selling an item at a discount and you have entered it into a place.
• The third type of transaction is because of the journal entry.
• The fourth type of transaction is an eccentric transaction.

Find the Transaction 

The process consists of four steps which are mentioned in detail:

Look for the Date 

The very first step in the process is to check the date on which the QuickBooks started showing balance sheet out of balance. To do this, follow the below-mentioned steps.

• First, you are needed to click on the reports option and then go to the company and financial reports option. Next, you will have to click on the balance sheet option.
• After this, you are needed to click on the customize option.
• next, you will be needed to click the display option and arrange the transactions again. Once done, you are needed to look for the date on which you are being shown out of balance.

Read more - How to fix QuickBooks abort error?

Verify the Transaction 

The next step in the process is to verify which transaction is causing the QuickBooks balance sheet out of balance issue. Follow the steps:

• The very first step is to go to the report option and then click on the custom transaction report.
• After this, you are needed to customize the report by clicking on the customize option. After this, you will have to click on the display option.
• Next, you are needed to enter the date and then you are needed to set the report to the accrual basis.

• After this, you are needed to click on uncheck the account option and after that verify the amount.

• Next, you will see the same amount which was out of balance as the ending balance of the balance sheet. 

Change the Transaction Date 

The next step in the process is to change the date of the transaction. Follow the steps mentioned:

• Once you are done with the above steps, you are needed to change the date of the transaction which is leading to the error. You are needed to change the date to the exact date after 20 years in the future.
• After you have changed the date, you are needed to save the changes.
• Now, you need to refresh the sheet and then you will be able to see the right transactions. 
• Once done, you will be required to change the date back to it was the same as the original.

Delete the Transactions

The last step in the process is to remove the transactions that are causing faults in the balance sheet. 

Read more - How to make a QuickBooks Journal entry?

Conclusion:

We hope all the methods we have discussed are enough for you to fix the balance sheet out of balance QuickBooks error. We hope the article was helpful to you and you will be able to solve the error. If you still face the QuickBooks balance sheet out of balance error, you can consult with our technical team and the team will help you to resolve the error.

Frequently Asked Questions (FAQs)

Q.1 – How do I fix a balance sheet out of balance in QuickBooks desktop?

Apart from the solutions mentioned above, you can try other resolution methods listed below:

• First, check to see if there are any unposted transactions. To do this, go to the Edit menu and select Verify Data. This will bring up a list of all unposted transactions. If there are any, post them and see if that fixes the problem.
• Next, check for any incorrect account balances. To do this, go to the Lists menu and select Chart of Accounts. Then review each account to make sure the balances are correct. If you find an incorrect balance, you can adjust it by going to the Edit menu and selecting Make General Journal Entries.

Q.2 – Why would my balance sheet be out of balance?

A balance sheet can become out of balance for several reasons. One common reason is that the value of assets has changed since the last balance sheet was prepared. This could be due to changes in the market value of investments or inventory levels. Another possibility is that errors have been made in recording transactions. There are discrepancies between the amounts reported on the income statement and the actual amounts that have been paid out or received. 

Q.3 – How do you zero out a balance sheet in QuickBooks?

If you need to zero out a balance in QuickBooks, the process is relatively simple. First, open the invoice by tapping twice on it. Then, click on “Edit” and choose “Delete Invoice.” You will be prompted to confirm your decision to delete the invoice for clearing out the customer balance; tap “OK.” The customer balance will be “$0” in the program.