A trial balance is a list of every account's balance used to check that total debits equal total credits before preparing the financial statements.
Published July 2026 · Updated July 2026
A trial balance is a report that lists the closing balance of every account in the ledger, with debits in one column and credits in the other. If the bookkeeping is sound, the two columns total the same.
It's a first check before producing the profit and loss and balance sheet: if debits don't equal credits, there's an error to find. Modern software generates it automatically, but the principle is the same.
No, it confirms debits equal credits, but a transaction coded to the wrong (still-balancing) account won't show up. Reconciliation catches more.
Not with software, it's generated automatically. Understanding it helps you read your accounts.
Source: Investopedia ↗. This glossary is written for small business owners, so definitions are simplified. Tax rates and thresholds reflect 2026/27 UK rules and change over time. Berified does not provide accounting, tax or legal advice; always check the source or a qualified adviser.