This is general information, not tax or legal advice. Rules and rates change, so check GOV.UK or ask an accountant.
A trial balance is a list of every account in your books with its balance at a date, split into debit and credit columns. Because every entry in double-entry bookkeeping has a debit and an equal credit, the two columns should total the same. See what is double-entry bookkeeping.
What it shows
- Asset and expense accounts normally have debit balances.
- Liability, equity and income accounts normally have credit balances.
- The totals of the two columns should match.
Why it matters
- It proves the books balance before you prepare reports.
- It is the starting point for your profit and loss and balance sheet.
- Accountants often ask for it at year end.
How to read one
- Check the date. It is a snapshot at one moment.
- Look at the bank accounts. Do they match your statements?
- Scan for unusual balances, such as a negative asset or a large “suspense” balance.
- Compare key accounts with last month.
If it does not balance
Software that enforces double entry rarely lets the trial balance fail. If totals look wrong, check for unposted drafts, a wrong date filter, or entries made outside the period. If a figure looks odd rather than unbalanced, the entry may be in the wrong account, which the trial balance cannot detect. See bank reconciliation mistakes.
What it cannot tell you
A balanced trial balance does not prove every figure is right. A cost in the wrong account or a missing invoice still balances.
How AvrioBooks helps
Run the trial balance and other reports from the Reports menu and export to PDF, Excel or CSV. See double-entry accounting software.
Frequently asked questions
What is a trial balance?
A list of every account balance at a date, in debit and credit columns, used to check that the books balance.
Should debits equal credits?
Yes. If they do not, there is an error somewhere in the entries.
Does a balanced trial balance mean my books are right?
Not necessarily. A cost posted to the wrong account still balances.
Can I run a trial balance in AvrioBooks?
Yes, from the Reports menu, with export to PDF, Excel or CSV.
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