About the Trial Balance

Use the Trial Balance report to check you've entered transactions correctly over time or at the end of a day.

Why is it important?

The Trial Balance report is important because it gives you a view of all ledger accounts. This includes all Balance Sheet and Profit and Loss accounts together in one report. It's also important for forecasting and analysis. For example, you may run a report of this year’s balances and one of last year’s balances to compare costs, expenses, and income. This data is critical for budgeting and to help you make important financial decisions about your business.

What's on the report

The Trial Balance report shows a snapshot of the balances of each nominal ledger account at a point in time. It includes cumulative totals of the debits and credits posted to each account.

Look for unexpected balances

If you see balances that are too small or large, you can run the report for today's date then drill down the balances to see details.

Select any underlined balance in the Debit or Credit column to see what makes it up. If you drill down on:

  • A Balance Sheet ledger account (except for Profit and Loss), the Nominal Activity report opens for you to review the transactions posted to the account. Select an amount to drill down further as needed.

or

  • The Profit and Loss line, the Profit and Loss report opens, detailing the account balances that have been summarised into Profit and Loss.

To return to the Trial Balance report, close the opened report or select Back in your browser.

Profits from previous years

The Trial Balance report shows all ledger accounts and includes a year-to-date column. Use it to compare balances from year to year.