Like every other software, Sage 50 also has a few errors. One of them is Sage 50 balance sheet out of Balance. It showcases that your total assert is not equal to the total liberalities or equity. In this blog, we have discussed different reasons that can lead to such problems. So keep reading to find your answer.
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Table of Contents
What Causes Sage 50 Balance Sheet Out of Balance?
Below we have discussed all the reasons behind Sage 50 balance sheet Out of Balance. This will help you troubleshoot the problem as well.
- Presence of Incorrect Transactions
- The existence of incorrect transactions can lead to the Sage 50 balance sheet being out of Balance. It means the balance sheet has transactions with incorrect amounts, or there are some missing entries. Thus, first check the transaction history in your Accounting software, and make sure that it is accurate.
- Inaccuracy while entering the Data.
- Another possible reason is following the incorrect step while entering the data in the balance sheet. Thus you have to look for any Typographical errors or duplicate or incorrect entries. Apart from that, go through the data entered in Sage 50 to find and fix all the errors.
- You might be using an Unreconciled Account.
- There are chances that you might be accessing an unreconciled account that causes Sage 50 Balance Sheet Out of Balance.
- Reconcile the related accounts to the actual account balance like the Bank account, credit card accounts, and other balance sheet accounts.
- Improper classification of Transactions.
- In case the classifications are not classified in an appropriate way, the balance sheet might be unbalanced. Hence make sure that the transaction is properly classified and assigned to the exact accounts.
- You are using Deleted or Inactive Accounts.
- You might be using an inactive or deleted account that can affect the balance sheet. So, check and find out if all the accounts are active or not.
- Bugs in the System
- It might be possible that the bugs present in your System are causing discrepancies in the Balance sheet.
- Unrecorded Adjustments in the Balance Sheet
- The unrecorded adjustments in the sheet can also be a major cause behind the Sage 50 out-of-balance balance sheet.
What are the Most Common Balancing Sheet Problems in Sage 50?
In this section of the article, we have mentioned the most common problems that users can face while using the Sage software.
- All the Accounts were not closed in the retained earning account.
- Every accounts were not closed in your retained earnings account.
- There is some inaccuracy in the Balance of accounts in the income column.
- The amount of the receipt rejected was split into a different account.
- Every transaction has a different balance on the last day of the financial year and first day of the upcoming financial year.
How to Eliminate Sage 50 Balance Sheet Out of Balance?
Now, let’s move ahead and learn the best ways to resolve the Sage 50 out-of-balance balance sheet issue. You can check the paragraph given below, and choose a way as per your preference.
Solution 1: Utilize the Chart of Accounts/Journal Synchronization test
Running the chart account is considered among the most effective fixes of the Balance sheet out of Balance in sage 50 Error.
- Firstly run the Chart of Accounts or Journal Synchronization Test.
- Thereafter, move to the Help menu, and select Integrity Check.
- Next, follow the on-screen procedure to create the Backup of your Company file.
- Hit the Reindexed Files and select Chart from the given list. Tap on Ok.
- Once the test is finished, head to the Help box and select the Support Utilities option.
- Now, click on the Integrity Check, and select the Reindexed files.
- Moving ahead, select Jrnl Rows, and tap ok.
- After the text Test is finished, repeat the instructions to do the integrity checks on Jrnl Rows and Chart of Accounts/Journal.
- Finally, Create the Balance Sheet Report to review and makes sure that the balance matches.
Solution 2: Review all the Damaged Transaction Error
Alternatively, if the first one won’t fix the Sage 50 accounting balance sheet is out of balance problem, you have to go with verifying the damaged transaction Errors.
- Initially, hit the Reports tab, and head to the Forms button.
- Thereafter click on the General Ledger and choose the General Ledger Report.
- Next, hit the Options tab, and make changes in the Time Frame to All.
- Click ok and wait for some time.
- If any error message appears on your screen, close it, and choose the Report or Form.
- Now ask all the users to close Sage 50 and tap on File.
- After that, select Start and save the Backup. The test will begin on its own when the Backup is completed.
- Now, let the data verification process be completed. Once it is done, review the account balance. If the Balance is still incorrect, head to section II.
Solution 3: Do the Integrity Checks
Before you go with integrity checks, it is recommended to prepare a backup of the company:
- All users have to close the Sage 50 Program from their respective Systems.
- Thereafter, choose the Tasks tab, and move to the System button.
- Next, you have to select the Change Accounting Period option and run the Chart of Accounts/Journal Synchronization test.
- Moving ahead, Check the account balances. The General Ledger should must be in Balance now. However, if the account balance is still not correct, head to the next steep.
- Now access the Integrity Check option, followed by clicking the Continue button.
- Choose the Journal Balances box, and hit ok.
- Again you have to Access the Integrity Check and then press Ok.
- Lastly, check the account balances; the General Ledger now must be balanced.
Solution 4: Consolidated Company is Out of Balance
If the consolidated company is Out of Balance, it will cause a Sage 50 balance sheet out-of-balance issue in your System. Thus, reconsolidate it immediately.
- Firstly launch or establish a subsidiary company, and head to the Reports & Forms.
- Next, double-tap to choose General Ledger and scroll down to the bottom of the General Ledger Trial balance.
- Now check if debits are equal to credits.
- Suppose they don’t, then refer to running the Chart of Accounts Journal Synchronization test.
- But if they do, Continue to Step 4.
- Steps 1-3 must be repeated for all the subsidiaries until you balance all the trial balances.
- Now, reconsolidate the Consolidated Company.
Note: Ensure that the consolidated company is in Balance.
Solution 5: If your Report is Damaged or Improperly Customized
Lastly, if none of the above methods works in your favor, and if the balance sheet is out of Balance in sage 50, then try this method.
- If you are utilizing a customized version, then begin the process by running the Standard version of the Trial Balance or Balance Sheet Report.
- However, if there is any custom report that is out of Balance must be deleted. Thereafter you have to recreate it. Thus make use of the standard report to start or make changes in the custom version.
In a Nutshell!
At this point, we are ending our blog. We hope now you can easily fix the Sage 50 balance sheet out of balance Error. However, if you have any doubts, consult our professionals using the Sage live chat option. Apart from that, you can also email us your queries and get help from the Sage experts 24*7.
Frequently Asked Questions!
Question 1: How do I fix a Sage 50 balance sheet out of Balance?
Answer: To fix the Sage 50 balance sheet that is out of Balance, follow the given set of instructions:
- Ensure that your Balance sheet check is appropriate and clearly visible as well.
- Verify and make sure that the Correct Signs are applied.
- Find the incorrect customized and damaged report.
- Try to fix the Sage 50 out-of-balance balance sheet using the Journal Synchronization test or use the Chart of Accounts.
- Work on the Corrupted Transactions and fix it.
- Check for the Out of Balance Consolidated Company and fix it as well.
Question 2: How do I fix the unbalanced trial balance in Sage 50?
Answer: Looking for a way to fix the unbalanced trial balance in Sage 50? If yes, then check the steps mentioned below:
- Launch Settings, and click on Change Program Date.
- Now, if another window prompts, close it.
- Select Yes, and match the software date with the incorrect revaluation date.
- Thereafter press ok, and reverse the original transfer.
Question 3: Why is my balance sheet out of Balance?
Answer: If you are wondering why the balance sheet is out of Balance in Sage 50, let’s find a few reasons, as it will give you an insight into the problem and help you in finding it as well.
- In case there is any damage in your transaction history.
- Your account balance must be Zero.
- Suppose your Custom report is corrupted or damaged.
- In case your Subsidiary company is out of Balance.
- It might be possible that a custom report is missing from the general ledger account.
- If the General trial balance begins filtered for some particular account or its segment, then also you can face a sage 50 accounting balance sheet is out of balance problem.
- In case your Account type is changed.
Question 4: How do I reconcile a balance sheet in Sage 50?
Answer: To reconcile an account in Sage 50, you have to provide a few details, including your bank statement date and ending bank date. Next, you have to clear the transactions that ate present on the Bank Statement. Every time you will clear a transaction, you will receive the difference on your Outstanding Checks, deposits in transit, and unreconciled difference fields.
Question 5: What happens if the balance sheet doesn’t balance?
Answer: If your balance sheet is not matching, then it means there is some mistake in your sheet. It indicates your current as well as future growth. Thus in case your balance sheet is full of mistakes, you can’t measure your business growth and issues properly.