Why Do My Trial Balance and Balance Sheet Show Different Balances for the Same Account?

What Is the Problem?

You are looking at two reports for the same fiscal year. The Trial Balance and the Balance Sheet show different balances for the same net position account.

This can look like a data error. In most cases, it is not.

Why Are They Different?

The two reports calculate net position in different ways.

Trial Balance
This report shows only what has been posted in the general ledger. It does not include current year revenue and expense activity until a closing entry is posted.

Balance Sheet
This report calculates what the close would look like if it happened today. It adds current year revenues and subtracts current year expenses automatically, even before a closing entry is posted.

Think of it this way. The Balance Sheet is looking ahead. The Trial Balance is showing only what is officially recorded. Until you post a closing entry, the two reports will show different numbers for the same account.

This is also why your Balance Sheet still totals to $0.00. It is staying in balance by including that automatic calculation.

How Do I Know If This Is Normal?

Here is a quick way to check:

1. Pull your current year revenues and expenses from the Revenue and Expense Summary report
2. Subtract expenses from revenues to get your net income
3. Compare that number to the difference between the two reports

If the gap between the Trial Balance and the Balance Sheet equals your net income, everything is working correctly. No data is wrong. You just have not posted a closing entry yet.

If the gap does not equal your net income, contact Client Support for assistance.

Important: Recalculating Will Not Fix This

Refreshing or recalculating your balances will not make the two reports match. The difference is calculated every time the report runs. It will come back after every recalculation.

The only way to resolve it is to post a closing entry.

How to Fix It

To bring the two reports into agreement, post the fiscal year closing entry for the affected fund. This involves:

• Zeroing out the revenue and expense accounts
• Posting the net amount to the correct net position account

Once the closing entry is posted, the two reports will match.

Before posting, work with your finance or accounting team to confirm how the close should be recorded. This is an accounting decision that your team needs to make. Do not post the closing entry without their guidance.