What is a trial balance in simple terms?

A trial balance is a list of all your business accounts and their balances at a specific date. It shows all debits and credits from your general ledger to ensure they balance equally, helping you check your bookkeeping accuracy before preparing financial statements.

How often should I prepare a trial balance?

Most small businesses prepare trial balances monthly or quarterly, though some do it weekly for closer monitoring. At minimum, prepare one before creating your annual accounts and before any major financial reporting periods.

What happens if my trial balance doesn't balance?

If your trial balance doesn't balance, there's an error in your bookkeeping. Common causes include posting to wrong accounts, transposition errors, or missed entries. Review recent transactions, check calculations, and ensure all debits and credits are properly recorded.

Can I use accounting software to create a trial balance?

Yes, most accounting software like FreeAgent, Xero, and QuickBooks automatically generate trial balances. This saves time and reduces errors compared to manual preparation, whilst providing real-time access to your trial balance data.

What's the difference between a trial balance and profit and loss?

A trial balance lists all account balances to check bookkeeping accuracy, whilst a profit and loss statement shows only revenue and expense accounts to calculate profit. The trial balance is used to prepare the profit and loss statement.

Do I need an accountant to prepare a trial balance?

Whilst you can prepare basic trial balances yourself using accounting software, an accountant ensures accuracy, identifies errors, and helps interpret the results. For complex businesses or if you're struggling with bookkeeping, professional help is recommended.

What accounts are included in a trial balance?

A trial balance includes all general ledger accounts: assets (bank, debtors, equipment), liabilities (creditors, loans), equity (capital, retained earnings), income (sales, other revenue), and expenses (rent, wages, utilities). All accounts with balances are listed.

How can GoForma help with my trial balance preparation?

GoForma's accountants can set up your accounting software, train you on trial balance preparation, review your monthly trial balances for accuracy, and ensure your bookkeeping meets compliance requirements. Book a free consultation to discuss your needs.

What is a Trial Balance?

A trial balance is a financial statement that lists all ledger accounts and their balances at a specific point in time to verify that total debits equal total credits, ensuring your bookkeeping records are mathematically accurate before preparing final accounts for HMRC submissions.

Last updated Feb 2, 2026

Published Feb 2, 2026

1 min read

Written by Jordan MaceyAAT

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<p>A trial balance is a report that lists the balances of all general ledger accounts of a company at a certain point in time.</p>

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What is a Trial Balance?

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