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islandenviro
February 17, 2023
Question

Cash basis. Bank accounts reconcile, but balances are incorrect in balance sheet

  • February 17, 2023
  • 1 reply
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1 reply

LieraMarie_A
LieraMarie_A
February 18, 2023

Hi there, @islandenviro.

 

Welcome to the Community! I'm pleased to help you figure out how to fix a Balance Sheet that's out of balance.

 

Your total assets should match your total liabilities on your Balance Sheet. If they don't, we can perform some steps to locate the transaction/s causing the issue. It’s a good idea to ask your bookkeeper or accountant for help before you continue. If you don't have one, you can visit the ProAdvisor site to run a search.

 

To start, let's run the Balance Sheet Summary report and find the date it went out of balance. 

 

Here's how:

 

  1. Go to the Reports menu.
  2. In the Search field, look for Balance Sheet Summary and select it.
  3. Under Accounting method, choose Cash.
  4. In the Columns section, from the Display columns by dropdown, select Years.

  5. Select OK.
  6. Compare your total assets to total liabilities & equity. Find when your balance sheet goes out of balance.

 

Once you find the year, follow the same steps to narrow down the exact date.

 

  1. Repeat steps 1 through 6 above. This time, from the Display columns by dropdown, select Month.
  2. After you find the month, follow steps 1 through 6 again. Now, select Week.
  3. And finally, once you find the week, repeat the steps again. This time, select Day.
  4. Now that you have the date your report went out of balance, continue to step 3.

 

After you determine the date, let's find the transactions that are making your balance sheet out of balance. To do that, let's run a Transaction Detail report for the date you noted.

 

Here's how:

 

  1. On the Reports page, look for Transaction Detail by Account and select it.
  2. Enter the date the report went out of balance in the From and to fields.
  3. Under Accounting method, choose Cash.
  4. Look through the report to find the transaction/s causing the issue.
  5. Make the necessary changes to fix the balance.

 

Additionally, I've added these articles that'll help you personalize and memorize your financial reports. This way, you can easily access them in the future:

 

 

Please let me know if you have other questions about managing reports. I'd be delighted to help you more. Keep safe always!

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