How to read a trial balance, for owners not accountants

A trial balance looks technical, but you can use it to spot problems.

What it is

A list of every account in your books with its balance, split into debit and credit columns.

Why the totals must match

Every entry has two sides, so total debits must equal total credits. If they do not, there is an error somewhere.

Matching does not mean correct

The totals can match even when an amount is posted to the wrong account. Treat it as a first check, not a guarantee.

What owners should look at

Does cash match what you hold? Do receivables and payables look reasonable? Is anything unusual, such as a negative stock value?

Ask your accountant

Pick any balance that surprises you and ask what makes it up. Good records can always answer.