Why it matters
The trial balance is the starting point for the financial statements and the tax return. If it does not balance, or if an account has the wrong balance, every report built from it is wrong.
Example
At year end, the bookkeeper exports a trial balance showing cash, receivables, equipment, payables, loans and equity. The debits total $410,000 and the credits total $410,000, so the books are in balance.
Related terms
Questions about Trial balance
Does a balanced trial balance mean the books are correct?
No. It only means the debits equal the credits. A transaction can be in the wrong account or the wrong period and the trial balance will still balance.