When your Sage 50 Balance Sheet is out of balance, the total assets do not equal the sum of liabilities and equity. Common causes include incorrect account balances, missing transactions, or inaccurate data entry.
To resolve the Sage 50 Balance Sheet out of balance issue, review each account on the Balance Sheet to confirm accurate balances. Identify and correct any incorrectly recorded or missing transactions. Ensure that all accounts are categorized correctly and that outstanding items, such as unpaid invoices or bills, are properly recorded. Users should also understand the details of Sage 50 Bank Reconciliation to avoid discrepancies.
This error may also occur due to incorrect retained earnings balances after closing the fiscal year. The last day of the previous fiscal year and the first day of the current fiscal year may show different balances without supporting transactions. This issue can arise when accounts fail to close to retained earnings and are instead fragmented into other accounts. In such cases, users often face challenges in identifying Sage 50 Bank Reconciliation Discrepancies.
Table of Contents
Common Balance Sheet Issues in Sage 50
Here are some common problems you may encounter when using the software.
- Not all accounts were closed in the retained earnings account.
- There is a discrepancy in the balance of accounts in the income column.
- The amount of the receipt rejected was split into a different account.
- Each transaction has a different balance on the last day of the financial year and the first day of the new financial year.
Quick Fixes for Sage 50 Balance Sheet Issue or Trial Balance appearing out of Balance
- First, you have to verify the General Ledger Entries
- Open the General Ledger Tasks menu and select Post Entries.
- Click Start and check the posting journal to confirm that all entries are posted.
- Open the General Ledger Reports menu and select Year-to-Date Ledger.
- Adjust the date range to match your balance sheet period.
- If filtering by a prefix group, add a condition for the prefix.
- Click Print Preview.
- The ledger is balanced if the grand totals on the last page match the expected values.
| Beginning Balance | Debits | Credits | Ending Balance |
|---|---|---|---|
| .00 | Equal to Credits | Equal to Debits | .00 |
If the ledger is balanced but the balance sheet or trial balance is not, refer to the steps below to fix the issue.
Causes of Sage 50 Opening Balance Out of Balance Error
Sage 50 shows a warning message in the Beginning Balances window for General Ledger Accounts if there is an imbalance. This message indicates that an equity account will be created or updated to account for the difference.
The account, called Beginning Balance Equity, is of the type Equity-Doesn’t Close. While it does not appear in the Beginning Balances window, it will be included in financial statements and general ledger reports.
Here are a few causes of Sage 50 opening a balance out of balance before you start troubleshooting:
1. Incorrect Transactions
Wrong transactions can cause the balance sheet to be out of balance. These may include:
- Incorrect amounts.
- Wrong account assignments.
- Missing entries.
- Review all transactions in Sage 50 to ensure their accuracy.
2. Unreconciled Accounts
Unadjusted accounts, such as bank or credit card accounts, may leave the balance sheet unbalanced. Reconcile these accounts to ensure that the reported balances match the actual balances.
3. Data Entry Errors
Mistakes during data entry can lead to inconsistencies. Look for:
- Typographical errors.
- Wrong or duplicate entries.
- Carefully review all data entered into Sage 50 and correct errors.
4. Misclassified Transactions
Improperly classified transactions can disrupt the balance. Ensure all transactions are assigned to the correct accounts, with debits and credits properly balanced.
5. Inactive or Deleted Accounts
Inactive or deleted accounts with balances can affect the balance sheet. Confirm that:
- All accounts with balances are active.
- Account types are correctly assigned.
6. Unrecorded Adjustments
Missing adjustments, such as accruals, prepayments, or depreciation, can cause discrepancies. Ensure all necessary adjustments are recorded to align reported balances with the actual financial position.
7. System Issues or Bugs
- Software issues or bugs in Sage 50 may create balance sheet discrepancies.
- Keep your software updated with the latest versions and patches.
- Contact Sage 50 Support if the problem persists.
Learn more about managing transactions to complement your understanding of entering, editing, or deleting opening balances in Sage 50.
How to Fix the Sage 50 Balance Sheet Out of Balance Problem
Before attempting advanced solutions, create a backup of your data, and if necessary, seek the assistance of a qualified Sage business partner, network administrator, or customer support analyst.
Below are the recommended solutions for balancing the accounts in the balance sheet. Follow the steps as mentioned.
Note: It is important to ensure the balance sheet in Sage 50 is out of balance before running the data tests. The steps below should only be used when the balance sheet is out of balance. The following steps will help you resolve this issue if you have recently changed the type of one of your general ledger accounts and you notice a balance sheet that is out of balance.
Step 1: Run the Chart of Accounts/Journal Synchronization test (most common fix)
- Run Chart of Accounts/Journal Synchronization test.
- From the Help menu, choose Integrity Check.
- Follow the on-screen instructions to create a backup of your company file.
- Click on Reindex files and choose Chart from the list. Select Ok.
- After the test has finished, go back to Help > Support Utilities > Integrity check.
- Click on Reindex Files and choose Jrnl Rows. Then select Ok.
- After finishing the test, repeat the steps to perform integrity checks on the Jrnl Rows and Chart of Accounts/Journal.
- Create the balance sheet report to verify that the balances match.
Integrity checks can take some time, and you may be prompted repeatedly, so keep clicking on ok to continue with the test; otherwise, the test will pause until you take further action.
Step 2: Improperly customized or damaged report
- Run the standard version of the Trial Balance or Balance Sheet report if you are using a customized version.
- A custom report that is out of balance should be deleted and recreated. Use the standard report to start, or correct the custom version.
Step 3: Verify all the Damaged Transaction Errors
- Click Reports -> Forms -> General Ledger
- Select the General Ledger report -> Click Options
- Change Time Frame to All -> Click OK
- If any error appears, close the error message, the General Ledger report, and select a Report or Form
- Have all other users close Sage 50
- Click File -> Data Verification
- Leave both tests selected -> Click Start
- Save the backup, the tests will begin automatically when this completes
- Once data verification has finished, check the account balances; if still incorrect, or if the General Ledger Trial Balance and/or Balance Sheet are out of balance, continue to Section II
Step 4: Integrity Checks
It is suggested to prepare a backup of the company before performing the steps mentioned below.
- Close the Sage 50 program (all users)
- Select Tasks -> System, and then select Change Accounting Period
- Select period 01 -> Click OK
- Select Help, Customer Support, and Service, and then select Integrity Check
- Run Chart of Accounts/Journal Synchronization test
- Check the account balances. The General Ledger should now be in balance. If the account balance is still incorrect, proceed to the next step
- Access Integrity Check -> click Continue
- Select the Journal Balances box -> click OK
- Access Integrity Check -> click Continue
- Select G/L Balances box -> click OK
- Check the account balances; the General Ledger should now be in balance. If the account balance is still incorrect, you can proceed to the next step.
Step 5: Consolidated Company is out of balance
- Open or establish a subsidiary company.
- Go to Reports & Forms, then choose General Ledger.
- Scroll to the bottom of the General Ledger Trial Balance by clicking twice.
- Are debits equal to credits?
- If they do not, refer to running the Chart of Accounts Journal Synchronization test
- If they match, continue to Step 5
- Steps 1-4 should be repeated for all subsidiaries until all trial balances are balanced.
- Reconsolidate the consolidated company.
- Make sure the consolidated company is in balance.
How to Handle an Unbalanced Trial Balance Report?
If your Trial Balance report is out of balance in Sage 50cloud Accounts, there could be various reasons. This article explains how to identify the cause and fix the issue.
1. Bucket corruption
Bucket corruption is one of the reasons why a Trial Balance report may become unbalanced.
To fix bucket corruption:
- File > Maintenance > Recovery Tools.
- Take a backup > OK.
- Recalculate Period Values > OK > Close > No > Close.
If the trial balance is still out of balance, click Next.
2. Check for data corruption
- File > Maintenance > If prompted to close other windows > Yes > Check Data.
Types of Sage 50 Balance Sheet Reports
A balance sheet is a financial statement report that provides a summary of a company’s assets, liabilities, and net worth (equity) at a specific point in time. While the income statement focuses on a company’s profitability, the balance sheet provides a snapshot of the company’s resources on a given day. You can generate balance sheet reports based on your company’s financial history.
You typically print a balance sheet at the end of an accounting period, after creating essential sources and adjustments.
To access the Balance Sheet report, go to the Report Center located in the Home window. From there, select Financials and then Balance Sheet. Choose the name of the specific Balance Sheet report you want to view and click on the Display button.
Types of Balance Sheets
- Comparative Balance Sheet: A comparative balance sheet provides a comparison between the current accounting period and previous periods.
- Multi-period Balance Sheet (Sage 50 Premium Accounting): Multi-period balance sheets provide a comparison of financial information for multiple accounting periods and typically compare month-end figures. They can compare more than two periods at a time.
- Departmental Balance Sheet Report (Sage 50 Premium Accounting): The Departmental Balance Sheet shows your account balances by total and by department for the selected period.
- Comparative Subsidiary Balance Sheet (Sage 50 Premium Accounting): A comparative subsidiary balance sheet is available if you have consolidated two or more companies.
Conclusion
Adapt the balances with a General Journal Entry in one of the open periods in the related resources section.
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Frequently Asked Questions
What does it mean when my Sage 50 balance sheet is out of balance?
This indicates that your total assets do not equal the sum of your liabilities and equity. Such discrepancies can arise from incorrect account balances, missing transactions, or data entry errors.
What happens if the Sage 50 balance sheet doesn’t balance?
If your balance sheet doesn’t balance, it likely means that there is some kind of mistake. Your balance sheet is the best indicator of your business’s current and future health. If your balance sheet is chock-full of mistakes, you won’t have an accurate snapshot of your business’s financial health.
How do I reconcile a balance sheet in Sage 50?
To reconcile accounts in Sage 50, select “Tasks| Account Reconciliation…” from the Menu Bar to open the “Account Reconciliation” window. Select the ID of the account to reconcile from the “Account to Reconcile” drop-down. Then, enter the statement date from the account statement into the “Statement Date” field.
What causes a balance sheet to be out of balance?
An increase in assets leads to an increase in equity and vice versa. The balance sheet will not be balanced if the equity does not show the difference between assets and liabilities. Therefore, errors in calculating equity can be another reason why your balance sheet has not been tallied.
What is the ‘Beginning Balance Equity’ account in Sage 50?
When there’s an out-of-balance situation in the Beginning Balances for General Ledger Accounts window, Sage 50 creates or updates an equity account named Beginning Balance Equity to reflect the difference. This account appears on financial statements and general ledger reports, but not in the Beginning Balances window.
How to run a trial balance in Sage 50?
To run a trial balance in Sage 50:
- Go to the “Reports & Forms” menu and select “Financials.”
- Choose “Trial Balance” from the list of available reports and then select the date range for the report.
- Click on the “Print” button to generate the trial balance report.
How do I fix a Sage 50 balance sheet that is out of balance?
- Make sure your Balance Sheet check is correct and visible
- Check that the correct signs are applied
- Ensuring we have linked to the right period
- Check the consistency in formulae
- Check all sums
- The delta in the Balance Sheet checks
- Double and half the Balance Sheet check
- Work from right to left
- Opening balance testing
- Check the changes from period to period of Balance Sheet items
When should I seek professional assistance for this issue?
If, after performing the above steps, your balance sheet remains out of balance, it’s advisable to contact a qualified Sage business partner, network administrator, or Sage customer support analyst for further assistance.
