Why a balance sheet does not balance in a forecast
Searches like “balance sheet does not balance forecast” usually come from a practical problem: the PL, BS, and CF look linked, but the balance check or cash tie is not clean. This page gives a short troubleshooting order before you export Excel.
1) Check the opening BS sign convention first
A three-statement forecast inherits the first error from the opening balance sheet. Keep the sign rule consistent across assets, liabilities, and equity. If imported trial balance rows mix debit-positive and liability-positive rules, the forecast may look wrong even when each row name is mapped.
Why is my three-statement forecast result off?
Usually the result is off because the input timing or direction is off. Before changing formulas, check opening balance signs, forecast start month, collection lag, payment lag, and debit/credit direction.
2) Confirm period timing before looking at formulas
- Opening BS date should be the month before forecast start.
- Transaction month should be inside the forecast range.
- Collection lag and payment lag can push cash impact into later periods.
- Annual mode and monthly mode should not be mixed in the same interpretation.
3) Isolate journal direction
If one transaction reverses a debit and credit expectation, the model can produce a balance or cash movement that feels backwards. Use one transaction row, run the forecast, then compare the PL, BS, CF, Journals, and Checks tabs in that order.
4) Use the Checks tab before paid Excel output
The browser view is the free review layer. Use it to find the mismatch, then export Excel only after the forecast direction and checks are stable. This keeps the paid output useful as a deliverable instead of a debugging workspace.