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The trial balance is an accounting listing that shows the beginning and ending balances for all accounts included in the set of books. This worksheet format makes it possible to evaluate whether or not the total debits for the period cited are in balance with the total number of credits generated for the same period.
Running a trial balance on a regular basis, at least monthly, helps you identify any problems quickly and easily and fix them as soon as they arise. Preparing the trial balance should be tied to the billing cycle of the company. Do not prepare any adjusting entries yet. The trial balance is prepared before you make any adjusting entries.