A trial balance is a financial report that lists the balances of all general ledger accounts at a specific point in time. It is typically prepared at the end of a reporting period to verify that total debits equal total credits, ensuring the accuracy of the bookkeeping records.
The trial balance helps identify errors or discrepancies before financial statements are completed. While it is not a formal financial statement, it acts as a preliminary check and a foundation for preparing key reports like the balance sheet and income statement.
Accurate trial balances are essential for maintaining reliable financial records and supporting sound business decisions.