Trial Balance: the check your accountant runs first
What a trial balance is, how to read the Debit and Credit columns on any day, and what to do when the totals do not agree.
A trial balance lists every account that has a balance, with its amount in one of two columns: Debit or Credit. In bookkeeping every amount is recorded twice, once on each side, so the two columns should add up to the same total. Accountants look at it first: if the totals agree, the books hang together. It is on every plan.
Step by step
- In the menu on the left, choose Reports.
- Choose Accounting & Tax, then Trial Balance.
- In the As At box at the top, pick the day you want. It starts on today.
- Read down the list of accounts, then the Totals row at the bottom.
- Read the line under the table: Debits equal credits, or Out by an amount.
The columns
| Code | The account's number, for example 1000 for the bank account. |
|---|---|
| Account | The account's name. |
| Debit | Amounts on the debit side. In plain terms: what the business has (bank, receivables) and what it spent (cost of sales, overheads), plus owner drawings. |
| Credit | Amounts on the credit side: what the business owes (payables, sales tax), what the owners put in, and what it earned (Sales). |
| Totals | The sum of each column. |
Unlike the Balance Sheet, the Trial Balance shows your Sales, Cost of Sales and Operating Expenses accounts separately, for all time up to the As At day. Retained Earnings shows only what was entered by journal (for example your opening balances), because the rest of retained earnings is those same three figures rolled into one.
Good to know: Accounts with no balance are left out.
When it is out
If the totals differ, the line under the table says Out by and the amount. It is the same gap the Balance Sheet shows, for the same reasons. Open the Balance Sheet for the explanation and the fixes.
Exporting it
On Business and Enterprise, choose Excel, CSV or PDF in the Export Format box and choose Export. You can also invite your accountant to your workspace so they can look at it directly.
See also
Was this helpful?
Still stuck? Write to us or email support@todah.ca — a person reads every message and replies by email. The FAQ covers plans, prices and the questions people ask before they sign up.