If your Balance Sheet is not in balance, but Trail Balance is. There are some problems that will cause that: First, you should understand that your Balance Sheet and Income Statement reports create based on the periods and groups of accounts set up in your software. The Trail Balance, on the other hand, is based on a report using individual accounts. An imbalance occurs for individuals who edited the default or created their own chart of accounts. Check the settings for your periods as well as how you assigned accounts to certain groups. For instance, you may have incorrectly assigned as asset account to a wrong group of accounts. If so, your Balance Sheet and / or Income Statement reports will not match your Trail Balance.