What is the primary purpose of a trial balance?

The primary purpose of a trial balance is to ensure the accuracy of bookkeeping and to confirm that debits equal credits. In accounting, every financial transaction affects at least two accounts, following the principle of double-entry bookkeeping. This means that for every debit entry made, there must be a corresponding credit entry.

The trial balance serves as a tool that lists all the balances of the general ledger accounts at a specific point in time. By compiling this list, accountants can quickly identify any discrepancies that might indicate errors in the recording of transactions, such as incorrect entries or miscalculations. When the total debits equal the total credits in the trial balance, it provides a preliminary check that the accounting records are mathematically correct, establishing a basis for creating accurate financial statements.

Other options while relevant to the accounting process do not capture the fundamental role of the trial balance as precisely as ensuring the equality of debits and credits. For instance, while it contributes to the creation of financial statements, that is a subsequent step that relies on the trial balance being correct first. Similarly, summarizing account balances and preparing tax filings are outputs of the accounting process but not the primary function of a trial balance itself.