Problems
Why doesn't my balance sheet balance?
Short answer
Usually because of manual journals posted to the wrong account, deleted reconciled transactions, or incorrect opening balances. Software normally forces a balance, so the real problem is often wrong figures in accounts like 'uncategorised' or 'suspense'.
Detailed answer
Distinguish balance from accuracy
Double-entry software normally enforces assets equals liabilities plus equity, so a balanced report can still contain serious classification errors. If a exported report actually fails to balance, first check filters, dates and whether all accounts are included. Opening balances or a damaged import may also require investigation.
Trace the questionable balances
Review suspense accounts, owner or director balances, retained earnings, loans and tax accounts. Compare each material balance with a supporting statement or schedule. Do not create an arbitrary equity journal to hide a difference. Ask an accountant to review unexplained balances and any proposed changes to prior-year figures.
Country differences: rules, thresholds and terminology differ between the US, UK, Australia and Canada. Check the official source for your country below.
Official sources
Published by Expert Bookkeeping Services · Last updated 2026-11-01. General information only — confirm specifics for your situation with a qualified adviser.
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