Trial Balance is another way of keeping up the accuracy of ledger entries. It is considered to be a technique for checking the debit and credit amounts recorded in the various ledger accounts. One can consider it to be a statement that entails the total of the debit and credit balances being recorded in various accounts. Fix QuickBooks Trial Balance Out of Balance Issue. Your accounts study won’t be complete without learning about the important accounting tools. You can say, if you wish to get a clear picture of all the transaction and finance activities, you can choose to go with trial balance and voila, everything will be before you.
One can consider the task of preparing the basic financial statements which gets simplified in the trial balance sheet preparation. Thus, as a business owner or as an accountant, you can refer to the Trial Balance sheet for various account balance or ledger entries. You do not have to look for such balances in each ledger account. But, there will be times when you will see this sheet out of the balance due to some missed entries or any other tech issue.
Main Reasons of QuickBooks Trial Balance Out of Balance
- Any of the inventory returned by the customer or a discount item may be present on an invoice.
- A specific payment has been recorded against the invoice and after this a discount was entered on the Discount/Credit tab against the same.
- If there will be an open Credit Memo, and the user entered an offsetting General Journal Entry (GJE), then the entry gets linked to the Credit Memo.
With these above mentioned issues, you may wish to refresh the reports. Please refer to these following steps:
- The very first thing to do is to log-out and log-in back into your QuickBooks file and then go to your Balance Sheet Report. If the display is loading slow, you should be seeing the reports back in balance.
- Click on Recurring Out of Balance Sheet Report
- In this case, you can also modify the default date. Once you can reconcile the balance sheet account in QuickBooks, then it will memorize the report.
- Then click on the Data Damage to the Company Data File
Solution Steps to Fix QuickBooks Trial Balance Out of Balance
Step 1: Run the Report in Accrual Basis
If the above mentioned method does not work and your issue still persists, then you need to troubleshoot the data. Here’s how:
- Run the Report in Accrual Basis
- Then, you need to run the report on an accrual basis to Clean up Balance Sheet in QuickBooks.
- You need to click on the Reports menu and then you need to hit on Company and Financial button.
- Choose Balance Sheet Summary.
- Hit on Customize Report.
- From the Display tab, you can select the accrual action and hit OK to apply.
- Look for the specific Date where QuickBooks Balance Sheet is showing out of balance
Step 2: Find the Date when your Balance Sheet went out of Balance
In order to locate the specific transaction or a group of transactions causing the issues, the very first move should be to locate the date.
- Firstly, you need to open the Reports menu
- Select the Company & Financials option.
- From there, you need to click on the Balance Sheet Summary.
- Press on the Customize Report.
- In the Display section, you need to select All from the drop-down menu of dates.
- Then you need to move to the Report Basis section
- If there is an error in accrual only, click on Accrual. Else, click on Cash.
- Under the Columns section, You will get the Display columns by drop-down menu, then choose the Year to get a custom date.
- As a part of the final phase, you need to Hit on OK and equate Total Assets to Total Liabilities and Equity.
- Locate the date where the balance sheet went out of balance in QuickBooks.
- From here, you can narrow it down to the exact date.
Step 3: Find the Transactions that are making your Balance Sheet Out of Balance
In similar ways, you can choose the Month, week and day’s data. Once you have the date when the issue started, you can locate the transaction. Then you can find the specific transaction for Which QuickBooks Balance Sheet is Showing out of Balance. This approach of running reports based on custom dates will sort the balance sheet faster than you think.
- You need to open the reports menu and click on Company & Financials.
- Move on to click Balance Sheet Summary.
- You can click on the Customize Report and in the Display tab, choose All from the Dates drop-down.
- You will be able to navigate to the Report Basis section and for the balance sheet out of balance in Accrual only, click on Accrual else choose Cash.
- Under the Columns section, you should uncheck Account, Split, Clr, and Class.
- Then, you need to choose the Amount to ease out reading of the report.
- Press hit on the Paid Amount Column and hit on OK.
- In the Paid Column, the ending balance should be equal to the amount that is out of balance.
- Then you need to locate the transaction or transactions in the report that sum up to the above mentioned amount.
- Re-date the Transactions
- Now that you have reached this far, at this stage it will be a little easier to find the transaction/transactions that are causing the issue. You will have to change dates on them.
- You need to make a note of their current dates and also edit them to a day 20 years in the future.
- Save each transaction.
- Finally, just refresh the report and the Paid Amount column will display zero value if you were working on the corrected entries.
- Then you should change the date of the transactions back to the original date. This re-links the transaction so that you can troubleshoot balance sheet issues in QuickBooks.
- Delete and Reenter the Transactions
- If you could not go ahead with this process, then an alternate approach will be to delete and re-enter the transactions.