When your Balance Sheet is out of balance, it can be challenging to figure out the initial point when this may have occurred. This article reviews one way that you can decipher when and what caused your Balance Sheet to be out of balance.
Step 1: Work backwards from today's date in increments.
Enter today's date into the Balance Sheet Report Parameters and run the report to see if the Balance Sheet is still out of balance. If so, adjust the date to 6 months prior to today's date and run the report. Continue this process until the report displays a balanced entry.
Example:
01/17/2022 - Today's date - Out of balance
06/17/2021 - Out of balance
01/17/2021 - Out of balance
06/17/2020 - Out of balance
01/17/2020 - In balance
Once you find the in-balance date, continue by entering in dates that are in one month increments between the in-balance and out-of-balance dates.
Example:
5/17/2020 - Out of balance
4/17/2020 - Out of balance
3/17/2020 - In balance
Now that the month has been narrowed down, continue entering in dates that are in one week increments between the in-balance and out-of-balance dates. After finding the right week, continue once more by entering in dates that are in one day increments until you find the exact date.
Example: Start of an out-of-balance Balance Sheet = 3/23/2020
Step 2: Review the Balance Sheet for the out-of-balance start day.
Run the Balance Sheet for the out-of-balance start date and review the account(s) to see any inconsistencies.
Step 3: Filter for the date and/or amount in the All Transactions grid.
Navigate to 'All Transactions' under the 'Transactions' menu in the left nav to open the All Transactions grid. From there, apply any necessary filters, based on the discoveries made while reviewing the Balance Sheet. It is recommended to start by filtering for the date and then, if needed, the amount in question.
Step 4: Identify and review the incorrect transaction(s).
When you discover the discrepancies from the All Transactions grid, open the record and review the details to find the erroneous entry. Make edits accordingly.