Before going toward the generating balance sheet in QuickBooks first we have to know about the balance sheet so we have discussed it in detail about it in this content.
What is a balance sheet?
Balance sheet mainly used to create the financial data of any company with the help of this sheet companies easily can track their accounting data, the equity of the company is calculated by subtracting liabilities from assets.
The first part or section is known as assets which are the company's own like buildings, cash, investments, inventory, equipment, etc.
Second one is liabilities, you can say that liabilities are the loans taken by companies, amount which have to pay by the company, Debt etc.
Component of balance sheet
1. Asset-
The asset are those things that company own, in QuickBooks balance sheet asset are those amount which are not yet paid and need to pay by the customers to the company. Building, equipments and interest that the company have.
2- Liabilities-
This is the amount which the company have to pay to their vendors and creditors like loans, borrowings, the outstanding balance of previous year also taken as liabilities.
3- Equity-
When the new account is created and the first or initiale amount that you have invested to run it or the first amount through which you have added in your newly created account is known as Equity.
Also Recommend- Why Users Need QuickBooks Enterprise Support?
How to create and run balance sheet in QuickBooks?
Creating the balance sheet in QuickBooks is not the big task. Here we are discussing the simple steps which you need to follow and trough these steps you can easily create balance sheet:-
1- Create a new balance sheet:-
In QuickBooks, at the top of the right corner, you can see the report option.
From the report section, go to business overview and choose Balance sheet option
2- Set option for the balance sheet report:-
Report Period-
First you need to select the period of time for your financial data from which time period you are create it.
Display columns by
The balance sheet has only one column at the end of accounting period from there you can choose to display additional column.
Show Non-Zero or activity only
It shows the row and column that are in already use.
Compare another Period
The additional column can be included for prior period balance to compare with another one.
Accounting Method
You have to select accounting methods as it has two methods one is cash basis and second is accrual basis cash basis method is used by small businesses for tax purpose and accrual basis method is used for management purpose.
Run Report
You have to select run report to apply and save all the changes that you have made.
Customize
Click on customize if you need to customize your balance sheet further.
Save Customizations
Save customization that you have done before it.
3- To further customize your balance sheet
First you need to delft teh date renge and then select the method which is cash basis and Accrual basis.
You can change the rows and column according to your requirement.
There is also the 5 filter option which class, location, customer, product or services, and vendor.
You can select the information which you need to show the headed and footer.
4- Print or Email your Balance Sheet
Click on the email icon to send QuickBooks balance sheet report as PDF, click on the print icon to copy your quickbooks balance sheet and then send Quickbooks balance sheet report to send.
QuickBooks balance sheet out of balance error
A user can encounter the QuickBooks balance sheet out of balance error for a variety of reasons, such as using multi-currency or having damaged data. So, we have discussed all the facts behind this Error.
Reasons for QuickBooks Balance Sheet Out of Balance Error
There are many reasons behind this Error which has discussed below:-
1- It may be occurs when you uses teh features of multi currency.
2- This error could be happened due to damage of the company file.
3- There is an incompatibility between the linked transactions or the entered transactions.
Conclusion
In this content, we have discussed briefly about to Generating Balance Sheet In QuickBooks Software and also mentioned the reason behind the QuickBooks Balance Sheet Out of Balance error. Hope it will help you out.