Trial Balance in QuickBooks
[full guide]
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QuickBooks is the best accounting software that you will ever come across as it provides you with a lot of features that you must be aware of. One of the most advanced features is trial balance. If you use QuickBooks then you must be aware of the term trial balance. But the question here is what it exactly is then don’t worry as we have got your back. If you want to know what is a trial balance in QuickBooks then you just need to get along with the article and get answers to every question.
What is a Trial Balance in QuickBooks?
Trial balance in QuickBooks shows a complete comparison or a balance of all the accounts for the given point in time. People generally use the trial balance in the Double-entry accounting system. It helps you to remove errors in accounting. Through this, you can improve your accounts as this software can detect every negative mistake in your account.
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How to Make a Trial Balance?
Making the trial balance is very easy. We generally make this trial balance at the end of the accounting year to check the accounts. In this way, you can check how much profit you have gained this year. In short, you have to put all your ledger accounts in three columns. Your trial balance report contains liability, Assets, equity, Expenses, revenues, and dividends. To start with the trial balance sheet here are a few steps to follow.
- Calculate the balance of each ledger account.
- Record the debit and the credit in the trial balance
- Now, You have to total both of the accounts and check if they are equal.
If the balance coming up after calculation is equal then it means that you have made a perfect trial balance and if not then you must have mistaken the accounts.
How to Run a Trial Balance in QuickBooks?
Now if you are stuck with the question of how to run a trial balance in Quickbooks then let me tell you that running a trial balance sheet is a much easier thing to do. You can go through any trial balance sheet with these simple steps.
- Click the Reports menu on the QuickBooks desktop.
- Select Accounts and Taxes.
- Here, you can see the option trial balance. Also, you can customize your sheet if you need to.
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Trial Balance in QuickBooks: A Double-Sided Sword
Trial balance in QuickBooks has its own pros and cons. It depends on the way you use it. The trial balance report in QuickBooks is good to use but sometimes very confusing and puzzling. Here we have enlisted pros and cons for you. Through reading down you can easily figure out whether one should use this or not.
Benefits of Trial Balance in QuickBooks
Summarize Financial Statement
It is important for you to check whether your business is in profit or loss. Preparing a financial statement can help you to look into the master or find the lack to fulfill. Through this feature, you can prepare the whole accounting report of your last financial year.
Finding Error
Through this feature, you are able to detect the error in an account that you were not able to find. The trial book detects the error in accounts in a simple way. You can find one if the total aggregate of debit doesn’t match the total credit.
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Limitations of Trial Balance in QuickBooks
Undetectable Error
Detecting errors is the toughest task you will ever do in QuickBooks. It just shows that there is an error in accounting but where the error actually is? This is the biggest question. Now when you know that there is an error then you will do the whole calculation again to find the error.
Very Confusing to Use
Through this trial balance feature, you can find the error but you will need to do the whole math again to find the Error which makes it very confusing to use.
Conclusion
In a nutshell, you have learned how to use the trial balance in QuickBooks with the easy guide. We are hoping that this article must have helped you out in a way. If you are using a trial balance then you must know everything about it. If you still have any questions then you can reach us in the comment section
Frequently Asked Questions (FAQs)
Q1. How to customize a trial balance report in QuickBooks?
- You can simply customize your trial balance with the easy steps here.
- Click Reports menu> account and taxes> trial balance> customize report.
- From here you can customize your trial balance. There are four filters that you can use.
Q2. How do I view the trial balance on the QuickBooks desktop?
Answer – You can simply view your trial balance in the account and taxes option where you can see your trial balance and here you can customize it as well.
Q3. What Is an Adjusted Trial Balance?
Answer – It is a kind of trial balance that is formed after an adjustment in the sheet. These expenses include prepaid and accrued expenses etc.
