Hi there vishvajeet,
Thank you for sharing this information with us. Let me share some information about why the Balance Sheet is out of Balance.
A Balance Sheet report, also known as a statement of financial position, provides a snapshot of your business’s financial standing at a particular point in time. It allows you to evaluate your business's financial health and performance by showing the value of assets, the combined value of liabilities and equity, and the relationship between them. The formula used to calculate this is Assets - Liabilities = Equity.
If your balance sheet is unbalanced, you can troubleshoot it by following these steps:
- First, check the conversion ratio to ensure it is correct, especially if you are using multicurrency.
- Review each account on the report to see the transactions associated with the balance of each account.
- Run the report for the year-to-date (YTD) period and gradually narrow down the date range each month until you pinpoint the specific day when the balance sheet becomes unbalanced.
- Check the transactions during that narrowed date range to find the specific transaction causing the imbalance.
- Take the necessary steps to fix the issue and bring the balance sheet back into balance.
Keep in mind that before generating balance sheet reports, it may be beneficial to seek advice from a professional bookkeeper or accountant to ensure the correct procedures are being followed.
For complete details and a thorough explanation of the factors why it happened, I would recommend checking this article: Troubleshooting incorrect balance and mismatch with account history
Moreover, I would also like to suggest the following articles to help you manage your balance sheet reports:
If you have any questions about the Balance Sheet report, please feel free to ask by commenting below. Take care and have a great day!
