Trial Balance

A trial balance is a financial report that lists all the accounts in a nonprofit’s general ledger along with their balances at a specific point in time. The report is used to verify that total debits equal total credits, ensuring the accounting system’s accuracy. By providing a snapshot of each account’s balance, the trial balance acts as an internal check before preparing financial statements, helping organizations detect errors such as misposted entries or calculation mistakes. It does not guarantee error-free books but is an essential step in the accounting cycle for confirming ledger accuracy and completeness.