Trial balance: the summary that verifies everything

Sample general ledger trial balance:

Account  Title                    Debits       Credits      Debit Bal.   Credit Bal.
411      Customers               385,200     312,400      72,800
401      Suppliers               198,300     226,100                  27,800
512      Bank                    601,450     573,200      28,250
706      Sales revenue                        486,000                  486,000
641      Staff remuneration     182,300                   182,300

The five lines every manager should review monthly

1. Balance 411 (customers): your outstanding receivables — compared to monthly turnover, this reveals your DSO.
2. Balance 401 (suppliers): what you owe — changes here show if you’re slipping on payments.
3. Balance 512 (bank): reconcile with your statement — any unexplained discrepancy invalidates the rest.
4. Class 7 vs. class 6 totals: revenue minus expenses = your provisional result, no need to wait for the accountant.
5. Account 471 (suspense): should trend to zero — this is where misclassified entries are parked.

General ledger, auxiliary ledger, aged trial balance: the general ledger summarises all accounts; the auxiliary ledger details third parties (each customer, each supplier); the aged trial balance breaks down balances by age (not due, 0–30 days, 30–60 days, 60–90 days, 90+ days). The latter is the key tool for managing receivables: a growing "90+ days" column signals potential bad debt provisions.

Before sending the trial balance to your bank, accountant or a buyer, run five consistency checks — ten minutes, no accounting expertise required:

1. Balances "on the wrong side": a customer with a credit balance (have they overpaid?) often hides an unallocated payment or a misapplied credit note. A supplier with a debit balance is the mirror issue.
2. Plausible VAT: the VAT collected balance compared to monthly turnover should align with your average rate. An inconsistent 44571 account = invoices entered without VAT or duplicated.
3. Internal transfer accounts (58) cleared: a non-zero 58 account signals a transfer that left one bank but never arrived in the other.
4. Reconciled bank balance: 512 balance = statement adjusted for suspense items (bank reconciliation sheet).
5. Expenses without matching revenue (or vice versa): subcontracting in class 6 without corresponding class 7 re-invoicing on a project — has the margin for this job gone missing?

Why this matters beyond accounting: the trial balance is the first document requested by a bank (alongside the financial statements), a credit insurer or a buyer. A clean trial balance — empty suspense accounts, reconciled third parties, consistent VAT — signals sound management, boosting credibility (and sometimes saving basis points on interest rates).