{"id":4077,"date":"2013-05-17T06:22:05","date_gmt":"2013-05-17T04:22:05","guid":{"rendered":"http:\/\/www.officetodo.com\/public\/?p=4077"},"modified":"2013-05-12T06:22:52","modified_gmt":"2013-05-12T04:22:52","slug":"my-balance-sheet-does-not-equal","status":"publish","type":"post","link":"https:\/\/www.officetodo.com\/public\/my-balance-sheet-does-not-equal\/","title":{"rendered":"My balance sheet does not equal"},"content":{"rendered":"

You may think that you did everything right and if you\u2019re using an accounting software, such a situation should not even arise. However, presuming here that you haven\u2019t bought an accounting software and are still doing your accounts either on paper or in Excel or some other form of method, situations like \u201cmy balance sheet does not equal\u201d are bound to happen.\u00a0<\/p>\n

There are various reason why this may happen \u2013 human error, logic failing, oversight, missing a debit and \/ or credit from your entry to have it making sense and so on. As I\u2019ve said before, be the reasons what they are, its how you remedy the situation that matters.<\/p>\n

First thing first, check if your beginning balances equal \u2013 do assets match the sum of liabilities and equity. If so, move onto transactions you accounted:<\/p>\n

    \n
  1. Does the entry have both sides \u2013 both debit(s) and credit(s)?<\/li>\n
  2. Do the debit(s) and credit(s) actually equal themselves?<\/li>\n
  3. Are the entries (the debit(s) and credit(s)) done on accounts, which actually make sense? I.e. you didn\u2019t just increase account receivables with debit and with credit you decreased for an example \u201ccost of sales\u201d (instead of accounting for a sales revenue)?<\/li>\n<\/ol>\n

    And that\u2019s pretty much there is to check with accounting entries. Trust me, where things can go wrong, they will eventually at least. What\u2019s important, is actually finding the mistake and rectifying it.<\/p>\n","protected":false},"excerpt":{"rendered":"

    You may think that you did everything right and if you\u2019re using an accounting software, such a situation should not even arise. However, presuming here that you haven\u2019t bought an accounting software and are still doing your accounts either on paper or in Excel or some other form of method, situations like \u201cmy balance sheet […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28,48],"tags":[],"class_list":["post-4077","post","type-post","status-publish","format-standard","hentry","category-4-reporting","category-4-3-balance-sheet"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=4077"}],"version-history":[{"count":2,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4077\/revisions"}],"predecessor-version":[{"id":4080,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4077\/revisions\/4080"}],"wp:attachment":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=4077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=4077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=4077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}