Glossary · Fund Accounting
Trial Balance (TB)
A trial balance is a report listing the closing balance of every general ledger account at a point in time, confirming that total debits equal total credits.
The trial balance is the bridge between the general ledger and the financial statements. Each account in the chart of accounts is listed with its debit or credit balance, and the report is mapped to statement lines to produce the statement of assets and liabilities, operations and changes in net assets.
In fund operations the TB is reviewed at every NAV cycle and at period end. Reviewers compare balances with the prior period, investigate unexpected movements, and tie key accounts to supporting schedules: investments to the portfolio valuation report, cash to cash reconciliations, capital to the investor register, and accruals to fee and expense schedules.
A balanced TB does not prove the books are correct — entries posted to the wrong account still balance. The value of the TB comes from the tie-outs and analytical review performed on it. Auditors request the year-end TB as the starting point for their procedures.
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