Tips for making your next financial year-end easier
- Written by Stratlaw
Financial year-end could be a major “headache” if you are not prepared and organized. Whether you are new in business or have been through many financial year-ends, it will always be very important to know how to read and understand your financial statements.
The Trial Balance (TB) is the first step in the preparation of financial year-end statements and is a report listing all the balances of the general ledger that are compiled into debit and credit columns of which the totals of both columns should be equal. Asset and expense accounts are on the debit side and liabilities, capital and income accounts are on the credit side. For every debit entry, a corresponding credit has to be entered in the books.