A trial balance lists each account with its balance as of a date. Because every entry balances, the debit column equals the credit column. Accountants use it as the starting point for financial statements, and auditors and CPAs usually ask for it first. An adjusted trial balance includes period-end adjustments; a post-closing trial balance is taken after the year-end close, when only balance sheet accounts remain.
Why it matters
It’s the quickest proof the books are complete and in balance, and it’s how you compare two systems during a conversion: if the trial balances agree account by account, the ledgers agree.
Worked example
After Riverside Pay App #9 posts (sample data), the trial balance shows 1110 Retainage Receivable with a debit balance of $3,300,000 for job 24-118, matching G702 line 5.
Common mistakes
- Treating a balanced TB as proof of accuracy. It proves balance, not correct coding.
- Comparing TBs from two systems at different cut-off dates.
How os.construction handles it
In the accounting preview the trial balance can be run as of any date and split by entity, project, department or cost code, and every figure drills to its lines. See Financial reports.