What is trial balance?

A trial balance is a bookkeeping sheet largely for internal use that shows all the ledgers in debit and credit columns.

It’s an important tool for finding any errors in your bookkeeping, as it clearly shows if all the debts and credits balance.

However, it’s still possible to make mistakes with classifying transactions or omitting information completely.

You’re likely to use a trial balance at the end of each reporting period to check your figures, and an auditor you employ might request to see it.