Managing business finances becomes much easier when your numbers are organized and accurate. In QuickBooks Online, one of the most helpful tools for checking the health of your accounts is the Trial Balance. This report gives you a quick snapshot of all your ledger balances in one place, which makes it easier to spot errors, confirm totals, and keep your books on track. If you’re new to QuickBooks then understanding how the Trial Balance works can save you time and prevent headaches at the end of the month. In this blog, you will get all the detail about the trial balance in QuickBooks Online, types and importance.
What is a QBO Trial Balance?
A trial balance in QuickBooks Online is a report that lists the ending balances of all your accounts. It shows every account’s debit and credit totals side by side, helping you confirm that both sides match. The trial balance doesn’t show individual transactions but provides the final balances from your chart of accounts. With this, you can easily catch the error and correct it. You can get a full financial report about the outgoing, incoming, and current balance of your business account.
Types of Trial Balance in QuickBooks Online
Mainly, there are three types of trial balance in QuickBooks Online that are required to properly maintain accurate transaction data in a report. This data can be used in the accounting software to get a perfect financial report of the organization. Three types of trial balance reports are.
Unadjustable Trial Balance
An unadjusted trial balance is the first form that is created from the financial records of the organization. It is considered a point that can be used to see the calculation error, if any missing entries are found in the record, or if any posting mistakes are made before any corrections are made.
Adjusted Trial Balance
An adjusted trial balance is mainly created after recording the necessary entries. This trial balance type helps to ensure that the suspended or collected data are perfectly recorded or not. This helps to show a correct and actual view of your account.
Post-Closing Trial Balance
Post-closing trial balance is mainly created after the closing of the entries. Actually, this trial balance helps to confirm that all the temporary accounts, such as revenue, expenses, are properly closed and reset to zero until a new project arrives.
Why is QuickBooks Trial Balance Important for an Organization?
If you have an accurate report, then it will be very helpful for getting the perfect idea about the organization’s working procedure. Trial balance in QuickBooks Online is really very much useful for an organization because it simplifies the review process of the necessary reports for the accounting process. It can also help you know if all the transaction data is perfectly recorded in the record, which will help you.
QBO trial balance gives you proper details about the error that is present in the financial report, like incorrect entry, wrong amount, or the wrong transaction date. A trial balance in QuickBooks Online can help you know which part of your company needs improvement. You can discuss with your team on the basis of the trial report to solve the error and improve the organization’s production method.
Advantages of QBO Trial Balance
Some of the common benefits of a trial balance in QuickBooks Online are mentioned below.
Accurate Balance
Having a perfect trial balance for the report helps you ensure that the debit and credit entries perfectly match in the record. By using this, you can easily find and correct the errors that are present in the report, which helps to get a perfect report for your organization.
Financial Reporting
If you have a properly maintained trial balance, then you can easily make the financial report for the business. While running the trial balance, you can get the necessary account balance report. Getting all these reports, like profit or loss report, balance sheets report, and other reports, really makes it easy for any records.
Enhance Decision Making
A perfect trial balance helps the owner and accounting team to get a perfect view of the organization. They can make an important decision for the organization to reach its production goal easily.
Reduce Record Errors
Regular updates of the financial record and proper monitoring can really help you catch mistakes that are present in the record. It will prevent the organization from facing an error in future record building.
How to Get a Trial Balance in QuickBooks Online?
Mainly trial balance in QuickBooks Online consists of all the records of the credit or debit balance in the account. It will also tell you if all your data is correct or not. If you want to create a QBO Trial Balance, then you should follow the steps below properly to prevent any errors.
- Log in to your QuickBooks Online Software.
- In the home screen, search for the Reports option that is present in the Menu Bar.
- In the search bar inside Reports, type “Trial Balance.”
- Click on the Trial Balance report from the list.
- If you want a record of a specific period, then enter the date.
- If you want then you can modify the record by clicking on the customize option.
- After checking all the details, click on the Run Report option.
What can You do If the QuickBooks Trial Balance is Not Balancing?
If your QuickBooks Trial Balance is not balancing, it usually means there is an error in your accounting records, such as an incorrect entry, a deleted transaction, or an imbalance in debits and credits. Start by reviewing your recent transactions, journal entries, and account balances to identify anything unusual. Look for entries that were manually adjusted, posted to the wrong account, or recorded twice.
Check your company’s audit log to track any changes made to transactions. If you find an error, correct it and run the trial balance again to see if the issue is resolved. Make sure your team follows proper accounting procedures so similar mistakes don’t happen in the future. If you’re still unable to fix the imbalance, contact your accounting team or a QuickBooks professional for support.
Conclusion
The trial balance in QuickBooks Online plays a vital role in the organization to create an effective and understandable financial report. If you use a trial balance in QBO, it will reduce manual entry as well as save you valuable time. I am quite sure that from this content, you have got all the ideas about the trial balance in QuickBooks Online. If you still have any doubts, you can call our QuickBooks team for help.