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Anonymous
Not applicable

Why doesn't the "quickbooks balance" for my fixed assets match my balance sheet for fixed assets?

I do not reconcile my QBO with my bank account, so I don't understand why, for my fixed asset accounts, the "ending balance" isn't the sum of Original Cost - Depreciation. For example, I have a fixed asset account called "Farm Buildings." Original Cost = 65,801.31 and Depreciation = -3,364.92. However, "QuickBooks Balance" = 124,872.78. The register balance is correct, as is my balance sheet. So where does the 124,872.78 come from?
7 Comments 7
Anonymous
Not applicable

Why doesn't the "quickbooks balance" for my fixed assets match my balance sheet for fixed assets?

In other words, why is it doubled?

john-pero
Community Champion

Why doesn't the "quickbooks balance" for my fixed assets match my balance sheet for fixed assets?

First issue would be you need to reconcile your bank account. Monthly, like clockwork.  This is important to verify that all transactions that should be in are in and those that should not are not. Do that before anything else. Other than original asset purchase no transaction against tge asset other than a sale would ever be in the bank register.

 

If your balance on the fixed asset is anything other than original cost you have a problem.  I mean there is nothing wrong with having a SEPARATE sub-asset account for each asset accumulated depreciation but the original cost asset account MUST also be a sub account. Both of these are children of the parent asset which acts as a summing account(never posted to) and its balance is ALWAYS equal to original cost.

 

As to how you got extra or reverse transactions in your account you can only tell booking at each transaction.

 

Did you, for example, make later building provements that should be their own new asset or equipment in the barn that also should be separate? A $68k barn with a $60k stanchion parlor is still a $68k barn.

Anonymous
Not applicable

Why doesn't the "quickbooks balance" for my fixed assets match my balance sheet for fixed assets?

@john-pero Thanks for the reply but just so we're not wasting anyone's time here:

 

  • I never have - and never will - reconcile my bank account through QBO. It is not necessary and can cause a lot of headaches. I manually reconcile my accounts every morning. I have done this for three years. To the penny. There are no issues there.
  • I know how to set up a fixed asset account.
  • I know what parent and sub accounts are.
  • I know what account summing is.
  • I know that the sum of a given Fixed Asset account (as I said in my post) should be Original Cost minus Accumulated Depreciation.
  • I do not have any "extra transactions."
  • I know how to track improvements made to fixed assets and I how to depreciate them.
  • My balance sheet is accurate.
  • The registers for the fixed asset accounts are accurate.

 

I should probably have been a little clear in my post: Next to "Ending Balance" QuickBooks is DOUBLING the actual balance of the fixed asset register, which, itself appears to change depending on how I sort it by date.

 

Please see attached screenshots. In the first screenshot (sorted by date descending), note the "Balance" in the right hand column next to the journal entry "04/27/21" journal entry. It says "124,872.78." This number matches the number under "Ending Balance" at the top. But both are wrong - they are exactly DOUBLE the accurate balance.

 

In the second screenshot (sorted by date ascending) note the note the "Balance" in the right hand column next to the same journal entry "04/27/21" journal entry. It now says "62,436.39." This is the SAME journal entry as above. This balance is correct and does not match the number under "Ending Balance" at the top.

 

Also see my redacted balance sheet for the same fixed asset account. It is summing its sub accounts correctly and reporting the correct number.

 

Screenshot (9).pngScreenshot (10).pngScreenshot (11).png

Anonymous
Not applicable

Why doesn't the "quickbooks balance" for my fixed assets match my balance sheet for fixed assets?

Here's another example. Notice how the actual sum of the sub accounts is half of what QBO says it is...

 

Screenshot (14).png

john-pero
Community Champion

Why doesn't the "quickbooks balance" for my fixed assets match my balance sheet for fixed assets?

digesting the screenshots

john-pero
Community Champion

Why doesn't the "quickbooks balance" for my fixed assets match my balance sheet for fixed assets?

I didn't mean to suggest you did not know what you were doing, forgive me for that, I was simply pointing out where errors can occur.  I do see the problem with the register.  But if your balance sheet is correct all I can guess is that for some unknown reason the balance being reported is the sum of both debits and credits, in other words, it is summing the money you put in plus the money you take out.  It is not correct. Sounds like a software bug. 

 

Gear icon>Feedback  report it as a bug, they should create a case.

Anonymous
Not applicable

Why doesn't the "quickbooks balance" for my fixed assets match my balance sheet for fixed assets?

@john-pero No problem at all; I was just trying to be more clear, which I should have been in my original post.

 

I did end up calling QBO support and the guy was actually helpful. He basically said it had bugged out.

 

So we just created new parent accounts and moved the sub accounts into them as appropriate. They are summing correctly. We then deleted the old parent accounts, which still showed a balance even though they were empty and their registers were empty.

 

When we deleted them, QBO did not make any adjusting transactions so it looks like all is well at this point.

 

Thanks for your help.

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