How to Fix Sage 50 Balance Sheet Out of Balance?

Balance sheet issues with sage50

If your Sage 50 balance sheet is out of balance, it means that the total assets do not equal the total liabilities and equity. This can happen due to various reasons such as data entry errors, incorrect account balances, or transactions entered in the wrong period. To fix this issue, you will need to identify the cause of the out-of-balance condition.

Like other accounting software, Sage 50 is also prone to some errors or issues and the Sage 50 balance sheet out of balance is one such issue that doesn’t allow the application to match the ledgers due to unwanted errors. Every organization needs to maintain its balance sheet; it is nothing but a document that captures all the liabilities, assets, date-wise profits and losses. Sage users can easily handle such activities using software tools like Sage 50 but sometimes it also landed up some issues. Today in this article, we will come to know how easily you can fix Sage 50 balance sheets out of balance.

For accurate analysis and prediction of your company’s profit and loss, it is of utmost importance for your balance sheets to be error-free. However, since large amount of data is involved while creating a balance sheet accounting errors do occur which, if not corrected timely, can lead to an incorrect prediction of your company’s financial health.

Reason Behind Sage 50 Balance Sheet Out of Balance

Before you move troubleshoot steps on how to fix Sage 50 balance sheets out of balance. Let’s check out few causes that lead to this Sage error:

  • Damaged transactions
  • Account types have been changed
  • An account balance should be zero
  • Damaged custom report
  • Subsidiary companies are out of balance
  • General Ledger Trial Balance is being filtered for specific accounts or account segments
  • A custom report got missing general ledger account

Read More-:Trial Balance Report in Sage 50

Different Sage 50 Balance Sheet Out of Balance

Here are some of the issues that might occur while preparing a balance sheet on Sage 50 Accounting software:

  • Retained Earnings account balance is incorrect
  • Accounts have different balance on the last day of last fiscal year and first day of current fiscal year, with no transaction
  • Accounts did not close to the retained earnings account
  • Retained Earnings account amount have been fragmented to another account.

Step to Fix Sage 50 Balance Sheet Out of Balance

Follow the below mentioned steps to quickly and easily fix balance sheet issues with your Sage 50 Accounting software:

Total Time: 35 minutes

Check for Damaged Transaction Errors

🔹 Click Reports & Forms and go to General Ledger.
🔹 Select the General Ledger report.
🔹 Now click Options and change Time Frame to All.
🔹 Click OK.
🔹 If an error message appears, close the error message and the General Ledger report.
🔹 Select a Report or Form.
🔹 Click File and then click Data Verification.
🔹 Select both tests and click Start.
🔹 Save the backup.
🔹 The tests will start automatically when this completes.
🔹 Once the Data Verification process has finished, check the account balance.
🔹 Your general ledger should now be in balance.

Integrity Checks

If the general ledger balance is still incorrect, or is out of balance, then you need to run the integrity check. For this,

🔹 Let all other users close Sage 50.
🔹 Now go to Tasks, then go to System and select Change Accounting Period.
🔹 Select period 01 and click OK.
🔹 Next, select Help and go to Customer Support and Service and 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, then

Go to Integrity Check and Click

🔹 Select Journal Balances box and click OK.
🔹 Now access Integrity Check and click Continue.
🔹 Select G/L Balances box and then click OK.
🔹 Check the account balances. The General Ledger should now be in balance.

Fix Improperly Customized or Damaged Report

🔹 If you’re using a customized Balance Sheet report or Trial Balance report then you’re required to run the standard version of the report
🔹 If the standard version is also out of balance then you need to run the Chart of Accounts/Journal Synchronization test and the steps are discussed in the next solution
🔹 If the custom version is out of balance then delete the customized report and recreate it using the standard report as the starting point or you can correct the custom report.

Run the Chart of Accounts/Journal Synchronization Test

🔹 Initially, you have to run the test named “Chart of Accounts/Journal Synchronization
🔹 Next, go to the Help >> Support Utilities >> Integrity Check with the Run Journal Balance test
🔹 And then hit the Continue button
🔹 Now, select the box called Journal Balances and then hit Ok
🔹 After that, select Help >> Support Utilities >> Integrity Check within the Run G/L Balances test window
🔹 And then click the Continue button
🔹 Once you’re done with that then select the box called G/L Balances and then hit Ok
🔹 Finally, check your report is available now in balance.

Fix Consolidates Company is out of Balance

🔹 The very first, open any one of your subsidiary companies
🔹 Go to the Report & Forms section >> General Ledger
🔹 Move to the General Ledger Trial Balance and perform a double-click on the same
🔹 After that, scroll down to the bottom
🔹 Now, do your debits equal to your credits?
🔹 If they do match from each other then proceed with step 6
🔹 If they don’t then you need to run the Chart of Accounts Journal Synchronization test?
🔹 In this step, you have to repeat the above steps for all your subsidiary companies
🔹 Lastly, check whether your consolidated company is visible in balance or not.

General Ledger Trial Balance is being filtered by GL Account Type, Account Segment, Account ID

🔹 Without a filter, you have to run the standard General Ledger Trial Balance report
🔹 Verify your ending debit and the credit totals match with each other.

Also Read: How to Enter Opening Balances in Sage 50

Final Words!

After applying all the solutions provided-above hope you’re easily able to fix Sage 50 balance sheets out of balance. In case, still your balance sheet is not at par then you can try to reboot your system and then once again attempt to test the integrity or perform the same troubleshooting steps to get rid of this error. Moreover, you can call 1800 964 3096 our Sage service team to get your resolve with ease. 

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💠Frequently Asked Questions💠

How Can we Access the Integrity Check in Prior Versions?

It is recommended that always create a backup of your data before proceeding with any advanced solutions. And to access the Integrity Check in your prior versions, you can apply the below steps:
🔹 Initially, close Sage 50 software
🔹 Next, perform a right-click on the Sage (Peachtree) icon and then select Properties
🔹 Now, keep your cursor to the far right of the Target field
🔹 Here, you have to enter a blank space and then add -i
🔹 Once you’re done then click Apply followed by the Ok button
🔹 Now, start your Sage 50 application with the icon that you have just modified
🔹 Perform a backup of the company data
🔹 After that, change your accounting period to period 1
🔹 Finally, go to the File section and then click Integrity Check.

How Do I Change Accounting Periods in Sage 50?

You should always create a backup of your company data before changing accounting periods:

🔹 Go to the Tasks menu and select System >> Change Accounting Period
🔹 Next, hit the Accounting period button that you find on the Button Control Bar at the top of the main Sage 50 window
🔹 Now in case, you don’t find the “Change Accounting Period” option then the user profile does not have security access to this particular section
🔹 Using the drop-down list box, you have to pick the period
🔹 You can change this one to any other period in the one or two open fiscal years for which you’ve set your accounting periods
🔹 At last, click Ok in order to begin the changing accounting period process.
If Sage 50 decides that you have checks or invoices that need to be printed (there are checks or invoices that are dated without a reference number in the current accounting period), you will be prompted to print them before the accounting period changes. Before adjusting accounting periods, you are often asked to print reports, which is recommended.
Once the printing is done then Sage 50 checks for UN posted transactions and at the top of the main Sage 50 window, you can adjust the accounting period data.

Why do I Need to Run Data Verification in Sage 50 Accounting?

Data verification Sage 50 U.S. Edition utility lets you verify your data if in case any of your data files got missing or might possible that it gets damaged. Sage 50 makes any needed change during the data verification process so that your data records are compatible with the software data formats.

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