Trial Balance
A trial balance is a bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal. It is a critical step in the accounting cycle used to verify the mathematical accuracy of the double-entry bookkeeping system before preparing financial statements. The trial balance ensures that total debits equal total credits, helping to detect errors in journal entries or ledger postings.
Developers should understand trial balance when building or integrating financial software, accounting systems, or enterprise resource planning (ERP) tools to ensure data integrity and compliance with accounting principles. It is essential for applications involving automated bookkeeping, financial reporting, or auditing features, as it serves as a foundational check for accuracy in transactional data processing.