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Why is my company's balance sheet not in balance?
Why is my company's balance sheet not in balance?

Reasons your company's balance sheet may not be balancing

Updated over a month ago

❗Notice: This article details why a single company's balance sheet may not be balanced. Please see 'Why is my consolidated balance sheet not balancing?' for consolidated groups.

Single Company Entities

To resolve an unbalanced balance sheet for a single company, we recommend the following workflow:
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Step 1: Check the company in your source accounting system. Is it in balance?

✅ Yes, it is. Good! Now, let’s make sure the data is up to date in Fathom:

  1. In Fathom, go to the My Companies page
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  2. Click the Three dots icon for a company.

    1. If multiple companies are imported into Fathom, hover over the company to reveal the Three dots icon.
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  3. Select Update

    1. If you're updating a cloud-sourced company, a modal will appear where you can update your data.

    2. If you're updating a desktop-sourced company, then you will be taken to the Company Settings, where you can update the data.


The data should be updated in Fathom, and the company should now be in balance. If the company is still out of balance, please move on to Step 2.

❌ No, it is not. Fathom brings in the amounts and values from your source accounting software. You’ll want to make sure your company is in balance in your source accounting system and then update the data in Fathom.

Step 2: Are accounts classified correctly in your Chart of Accounts in Fathom?

When you import a company, Fathom will do its best to map accounts to their correct classification based on your financials.

You can review the Chart of Accounts in Fathom for companies on a Fathom Pro plan. Learn how to review the Chart of Accounts from our Chart of Accounts article.

✅ Yes, they are. Good! Then, the company should be in balance in Fathom.

❌ No, they are not. To reclassify an account in Fathom:

  1. In the Chart of Accounts, hover over the account you need to reclassify
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  2. Click the green Reclassify button.
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  3. From the menu, choose the account’s appropriate classification.
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  4. Save changes
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💡Smart Tip: We recommend making no more than 20 changes to the Chart of Accounts in Fathom before saving changes. This ensures that all of your changes will be saved correctly.


The balance sheet should be balanced once all accounts are classified appropriately in Fathom. To review the types of account classifications in Fathom, please see this article.

Did this not resolve the issue?

Feel free to contact our support team using the support chat option or via email at support@fathomhq.com.

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