If you’ve ever wondered how accountants turn your raw financial data into readable financial reports, the trial balance is how. The trial balance is at the heart of the accounting cycle-a multi-step process that takes in all of your business’ financial transactions, organizes them, and turns them into readable financial statements. Here’s an unadjusted trial balance example (more on what that means below) for the fictional company Pepper’s Inc., for the period ending December 31, 2022: Account You may have also heard it referred to as a trial balance sheet as it should be one worksheet summarizing all of your activity for a certain period in time. The trial balance is a list of all your business’ ledger accounts, and how much each of those accounts changed over a particular period of time.
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