▶ Why does the Balance Sheet not balance?

Why isn't my balance sheet balancing?

You might be encountering this issue due to several reasons. Here's how to identify and fix it:

You can start by re-running 'Calculate', as you might have missed this step earlier.

Next, generate the balance sheet to pinpoint where the error lies:

• Distinguish whether it is the Last Year, the Current Year, or both that do not balance.
• Calculate the discrepancies and make a note of them.
• If there's no data for the previous year, it needs to be either copied over (for those with a previous financial year) or entered under 'Restate Last Year' (for new users - refer below). This should resolve the issue.

If the difference is just a few pennies, it's likely due to a rounded entry (perhaps taken directly from the AGAR) - double-check the figures entered via Setup/Restate Last Year.

If there are imbalances in the figures (more than mere pennies):

1. Navigate to Setup → Bank Balances. Record the VAT figure and verify that it matches the value under Restate Last Year/VAT.

2. In Setup/Bank Balances, calculate the opening balances of all bank accounts and petty cash, and check that it equals the value under Restate Last Year/Cash at Bank.

3. In Restate Last Year/Funds, confirm that the sum of the General, Earmarked, and Capital Funds Carried Forward matches the Box 7.

4. Also in Restate Last Year, verify that the difference between the Funds (Box 7) and Cash at Bank (Box 8) equals the sum of the adjustments:
   
   Cash at Bank (Box 8) + (Debtors, Prepayments, Stocks & Stores, VAT) - (Creditors, Accruals, Receipts in Advance, Doubtful Debts) = Funds (Box 7)

If any of these values are missing, enter them under Restate Last Year/Adjustments. If these values exist but don't balance, further investigation is required to identify which figures are accurate and which need correction.

If you identify any missing entries at any point, add them and rerun 'Calculate' to check if this has resolved the issue.

💡 Remember, any time you make changes, rerun 'Calculate' to check if the issue has been resolved.