What is a trial balance in accounting?

In accounting, a trial balance is a report that lists the balances of all ledger accounts of a company at a specific time. These accounts are related to all major accounting items, such as equity, revenue, assets, liabilities, gains, and losses. Generally, it is used to show the balance of credits and debts at a given time.

Trial balances are a great way to detect any errors or inaccuracies in a general ledger. This is extremely important to make sure all major accounting items are in order for a business. They cannot detect all errors, such as original entry errors or errors of omission, but it is a great basic start to keeping your accounting organized and correct.