diff --git a/hledger-lib/Hledger/Data/Account.hs b/hledger-lib/Hledger/Data/Account.hs
index 78b40d7ce..d1ef12c56 100644
--- a/hledger-lib/Hledger/Data/Account.hs
+++ b/hledger-lib/Hledger/Data/Account.hs
@@ -11,6 +11,7 @@ module Hledger.Data.Account
 where
 import Data.List
 import Data.Maybe
+import Data.Ord
 import qualified Data.Map as M
 import Safe (headMay, lookupJustDef)
 import Test.HUnit
@@ -183,6 +184,12 @@ filterAccounts p a
     | p a       = a : concatMap (filterAccounts p) (asubs a)
     | otherwise = concatMap (filterAccounts p) (asubs a)
 
+-- | Sort an account tree by inclusive amount.
+sortAccountTreeByAmount :: Account -> Account
+sortAccountTreeByAmount a
+  | null $ asubs a = a
+  | otherwise      = a{asubs=sortBy (flip $ comparing aibalance) $ map sortAccountTreeByAmount $ asubs a}
+
 -- | Search an account list by name.
 lookupAccount :: AccountName -> [Account] -> Maybe Account
 lookupAccount a = find ((==a).aname)
diff --git a/hledger-lib/Hledger/Reports/BalanceReport.hs b/hledger-lib/Hledger/Reports/BalanceReport.hs
index 93c512542..563b98c4d 100644
--- a/hledger-lib/Hledger/Reports/BalanceReport.hs
+++ b/hledger-lib/Hledger/Reports/BalanceReport.hs
@@ -92,7 +92,7 @@ balanceReport opts q j = (items, total)
                          dbg1 "accts" $
                          take 1 $ clipAccountsAndAggregate (queryDepth q) $ flattenAccounts accts
           | flat_ opts = dbg1 "accts" $
-                         maybesort $
+                         maybesortflat $
                          filterzeros $
                          filterempty $
                          drop 1 $ clipAccountsAndAggregate (queryDepth q) $ flattenAccounts accts
@@ -101,6 +101,7 @@ balanceReport opts q j = (items, total)
                          drop 1 $ flattenAccounts $
                          markboring $
                          prunezeros $
+                         maybesorttree $
                          clipAccounts (queryDepth q) accts
           where
             balance     = if flat_ opts then aebalance else aibalance
@@ -108,9 +109,12 @@ balanceReport opts q j = (items, total)
             filterempty = filter (\a -> anumpostings a > 0 || not (isZeroMixedAmount (balance a)))
             prunezeros  = if empty_ opts then id else fromMaybe nullacct . pruneAccounts (isZeroMixedAmount . balance)
             markboring  = if no_elide_ opts then id else markBoringParentAccounts
-            maybesort   = if sort_amount_ opts then sortBy (maybeflip $ comparing balance) else id
+            maybesortflat | sort_amount_ opts = sortBy (maybeflip $ comparing balance)
+                          | otherwise = id
               where
                 maybeflip = if normalbalance_ opts == Just NormalNegative then id else flip
+            maybesorttree | sort_amount_ opts = sortAccountTreeByAmount 
+                          | otherwise = id
       items = dbg1 "items" $ map (balanceReportItem opts q) accts'
       total | not (flat_ opts) = dbg1 "total" $ sum [amt | (_,_,indent,amt) <- items, indent == 0]
             | otherwise        = dbg1 "total" $