Running the business · 5 min read · Published
Why your QuickBooks balance sheet doesn't look right, and how to fix it
By Chris Greco, Founder and President.
When a QuickBooks balance sheet looks wrong, the error is usually in one of five places: undeposited funds, opening balance equity, loans booked as income, payroll liabilities that never clear, or a suspense account called "ask my accountant." None of them fix themselves.
Undeposited funds grows when payments are received twice. Opening balance equity is where setup shortcuts hide. A loan booked as income overstates profit by the loan amount. Payroll liabilities that do not reverse mean the filings and the books disagree. Each one is visible in five minutes if someone looks.
Start at the oldest month the books were last trustworthy. Reconcile every balance sheet account forward from there, to a statement or a schedule. Document what was wrong. Then decide who keeps it right.
Where this applies
Chris Greco
Founder and President, CFO Anywhere. CFO for owner-led companies since 2002. Executive MBA, Gies College of Business, University of Illinois.
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