Year-End Review of the Simple Trial Balance

The Trial Balance is the "master list" of all accounts in your business. It ensures that your debits equal your credits and provides a comprehensive view of your financial standing before the year-end is finalised. This report is the primary tool for catching errors, clearing "junk" accounts, and preparing a clean dataset for your accountant.

Important Note: While the Trial Balance is your primary cleanup tool, always consult with your accountant before posting final reports. 

How to Access the Report

1. Navigate to the Reports tab.
2. Select Ledger Reports and click on Simple Trial Balance.
3. Select your Date Range (ensure it covers the full financial year).
4. Click Apply to generate the view.

1. The "Zero Balance" Rule

• Debits vs. Credits: Scroll to the bottom of the report. The total of the Debit column must exactly match the total of the Credit column.

• Suspense & Unallocated: Scan the list for any "Suspense" or "Opening Balance Equity" accounts. These must be €0.00 at year-end. If a balance exists, it means transactions were posted without a category and must be reclassified before closing.

2. Verifying Stock Logic

The Trial Balance allows you to see the "mirror effect" of your stock journals across the P&L and Balance Sheet simultaneously.

• Asset Side: Look at Stock (Current Asset 13000). This should match your physical stock-take value.
• P&L Side: Check the Opening Stock (58000) and Closing Stock (59000) nominals.
• The Check: Verify that your journal entries correctly moved the opening stock to the P&L and recorded the new closing stock as an asset.

3. Payroll & Statutory Reconciliation

• Payroll Software Alignment: Compare the Wages & Salaries totals on your Trial Balance to the reports in your payroll software (CloudPay).

• VAT on Cash vs. Accrual Basis: If your business is registered for VAT on a Cash Receipts basis, please note that your Trial Balance and other ledger reports will display VAT amounts on an Accrual basis. It is normal for these figures to differ from your VAT returns, as this report follows standard accounting rules that record VAT based on the invoice date rather than the payment date.

• Liability Check: Review your PAYE and PRSI balances. These should represent only what is owed for the final period. Negative balances or unusually high figures often indicate duplicate entries or missing payments.

4. Spotting "Opposite" Balances

The Trial Balance highlights unusual entries immediately.

• Expense Accounts: These should typically have Debit balances. A credit balance in an expense account (like Rent or Heat) suggests an over-recorded refund or a reversed journal entry.

• Bank Accounts: A credit balance here indicates an overdraft or missing deposit entries.

5. Director’s Loan Account

• Threshold Check: Locate your Director’s Loan Account in the liabilities section.

• Accountant Alert: If the Director’s Loan Account shows a Debit balance (meaning the director owes the company), flag this to your accountant immediately. This can have significant tax implications, such as Benefit-in-Kind (BIK) or surcharges.

Trial Balance Final Review Checklist

Account Category	What to Verify	Checked?
Overall	Total Debits = Total Credits.	☐
Suspense/Misc	Account balance is €0.00.	☐
Stock (13000)	Matches physical stock-take value at cost.	☐
Wages	Totals reconcile with payroll software annual reports.	☐
Bank	Ledger balance matches your actual year-end statement.	☐