What is a Trial Balance Report?
A trial balance report is a document you use to check against your balance sheet and profit and loss statement match.
The trial balance adds up all of your debits and credits that both should have the same total amount at the bottom line.
If your balance sheet or profit and loss statement doesn’t match the trial balance report. There was a transaction or journal entry that was entered incorrectly.
The trial balance is used at the end of the fiscal year when you are closing out reports to be finalize. They are also used by auditors when they look at your company books.
Benefits of running a trial balance report is that it keeps your records accurate and catch mistakes that were made during the operation year.
When mistakes are found. All you have to do is go back to that transaction and correct it with an adjusted journal entry.
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