Trial Balance

EasyERP accounting software delivers you all the range of necessary reports that a good specialist needs. That includes the Trial Balance Summary, it is used to ensure the entries in a company’s bookkeeping system are mathematically correct. Though using a software that is by definition free from that kind of mistakes, it is still a useful tool that can help to prepare for closing the period procedure.

If you are unfamiliar with the term then you can read it here. A trial balance is a list of all the general ledger accounts (both revenue and capital) contained in the ledger of a business. This list will contain the name of each nominal ledger account from the Chart of Accounts and the value of that nominal ledger balance. Each nominal ledger account will hold either a debit balance or a credit balance. The debit balance values will be listed in the debit column of the trial balance and the credit value balance will be listed in the credit column.

As we have already mentioned preparing a trial balance in the EasyERP Accounting module is used to reveal any input errors that have occurred in the double-entry accounting system. If the total debit sum equals the total credit sum, it means that the trial balance is, well, balanced, and there should be no mathematical or input errors in the ledgers.

But keep in mind, this result does not mean that there are no mistakes or errors in a company’s accounting records. For example, transactions classified wrong or those simply missing from the EasyERP Accounting system will still count as errors that would not be detected by the trial balance report.

But enough of theory, let us see how does it look. To open up a Trial Balance Worksheet in the EasyERP accounting module simply tap on the corresponding button in the main menu, as you can see here:

EasyERP trial balance

This action will open up, and automatically fill up the Trial Balance. This datasheet will be ready right after you open it up, you don’t need to do anything. In fact, all you can do in this menu is select a time interval, from which data should be collected. To do simply press the calendar image or the date at the top of the page:

EasyERP trial balance calendar

As you can see you are able to select one of the already prepared intervals or create your own, by tapping on the Custom date and setting it there. You may found different sets of usage for different Trial balances for diverse time intervals, for example, the year-end trial balance is typically asked by auditors when they begin an audit so that they can transfer the account balances on the report into their auditing software.

Now, let us finally take a look on the Trial Balance itself, in the EasyERP accounting module:

EasyERP trial balance example

It has a form of a table that consists of four columns, and a “Total” row. The columns are:

  • Account – the items listed in this columns are the account categories that are registered in the EasyERP accounting module. You can add or remove them in the Settings -> Accounting menu. If you have set the COA correctly, this rows will display a full financial portrait of your company;
  • Debit and Credit – these columns will show how much money was added or subtracted from the corresponding categories;
  • Balance – this column shows the amount of money left on the account at the end of the time interval that you have set. Simply put it is the equivalent of debit minus credit action.

Now to address the total row at the bottom of the chart. The number in this row is just a sum of all values above it. The most important number in this table is the total of balance. It always should be 0. If it is any value that is different from 0 then there is a mistake in your accounting data, and you should figure out where it is coming from and eliminate it.

EasyERP accounting module gives you the possibility to see more detailed information about every category in the Trial Balance. You can analyze the amounts of money from every single account. To do so tap on the accounting category that interests you, this action will make a drop down list appear, with all accounts that belong to that category, and will display the cash flow of the correspondence accounts. You can see even more detailed information by pressing on the appeared account name, it will show you all the transactions that have influenced the balance, with the exact creation date and time. To close all drop down lists, tap on the category again. You can see an example below:

EasyERP category action example