Are your books balanced?
The Trial Balance is a summary of all account balances at a specific point in time. It lists every account in your system with its debit or credit balance, and confirms whether your total debits equal your total credits. If they match, your books are balanced.
This report is primarily used by accountants to verify the accuracy of your records before preparing financial statements or filing taxes. While most business owners won't review this report regularly, it's an important checkpoint that ensures your financial data is mathematically correct.
Why the Trial Balance Matters
Accountants and business owners use this report to:
- Verify accuracy by confirming that total debits equal total credits
- Prepare financial statements by using the balances as a starting point for the Balance Sheet and Profit & Loss
- Support audits by providing a clear summary of all account balances at a given date
- Identify errors by spotting accounts with unusual balances that may need investigation
- Close accounting periods by reviewing balances before finalising monthly or yearly records
Accessing the Report
To view your Trial Balance, navigate to Finance → Reports and select Trial Balance.
At the top of the report, you can select your date:
- 2025 or 2024 for the balance as of year end
- Custom to select any specific date you need
Use the Download button in the top right corner to export the report for your records or to share with your accountant.
Understanding the Report Structure
The Trial Balance displays all accounts in a simple list with the following columns:
- Account is the name of the account. Click it to view all transactions in that account.
- Debit/Withdrawal shows the account's debit balance if it has one.
- Credit/Deposit shows the account's credit balance if it has one.
Each account appears on its own row with its balance in either the Debit or Credit column, but never both. A dash (-) indicates no balance in that column.
Reading the Totals
At the bottom of the report, two rows summarise the data:
- Total Amount shows the sum of all debit balances and the sum of all credit balances
- Balanced shows 0.00 when your total debits equal your total credits, confirming your books are balanced
When your books are balanced, both columns in the Total Amount row will show the same figure. In the example above, both show 169,570.41, and the Balanced row confirms 0.00.
Which Accounts Have Debit vs Credit Balances?
Understanding which accounts normally have debit or credit balances helps you spot potential errors:
- Asset accounts (bank accounts, accounts receivable, fixed assets) typically have debit balances
- Expense accounts (salaries, rent, office supplies) typically have debit balances
- Liability accounts (accounts payable, loans, sales tax payable) typically have credit balances
- Income accounts (sales revenue, interest income) typically have credit balances
- Equity accounts (retained earnings) typically have credit balances
If an account shows a balance on the opposite side from what's expected, it may indicate an error or an unusual situation worth investigating.
Viewing Transaction Details
When you click on an account row, you'll see a detailed breakdown of every transaction in that account. The transaction view shows:
- Date is when the transaction occurred
- Type describes the transaction type (e.g., Opening Balance, Expense, Other Income)
- Description provides details about what the transaction was for
- Reference is the transaction reference number. Click it to open the original transaction.
- Debit/Withdrawal shows the debit amount for this transaction
- Credit/Deposit shows the credit amount for this transaction
- Balance shows the running balance after each transaction
The Ending Balance at the bottom confirms the final balance for that account, which matches what appears on the Trial Balance report.
How Is This Different from the General Ledger?
Both reports show account information, but they serve different purposes:
- Trial Balance shows account balances at a single point in time. It answers: "Where do my accounts stand right now?"
- General Ledger shows account movements over a period of time. It answers: "What activity happened in my accounts?"
The Trial Balance is a snapshot, while the General Ledger shows the journey. Your accountant may use both: the General Ledger to investigate transactions and the Trial Balance to verify final balances.
Frequently Asked Questions
A dash indicates no balance in that column. Each account has either a debit balance or a credit balance, not both. For example, a bank account with a positive balance shows an amount in the Debit column and a dash in the Credit column.
The Balanced row shows the difference between total debits and total credits. When it displays 0.00, your books are balanced, meaning every debit has a corresponding credit. This is a fundamental requirement of double-entry accounting.
Most business owners don't need to review this report regularly. It's typically used by accountants at month-end, quarter-end, or year-end to verify records before preparing financial statements or tax returns.
What's Next?
Now that you understand the Trial Balance, explore these related articles:
- General Ledger to see transaction activity over a period
- Chart of Accounts to see how your accounts are structured
- Balance Sheet to see your overall financial position