What is the purpose of trial balance?

The purpose of a trial balance is to show balances of each of the accounts that hold balances in the respective company.

The trial balance is split into two sections, the income statement (statement of comprehensive income) and the balance sheet (statement of financial performance)

The balance sheet holds the accounts that the balances get carried forward each year and the income statement holds only the transactions for the current year.

So there are many uses for a trial balance. You are able to perform analytical procedures on your revenue for the year or see what the balance of your liabilities are.

The main purpose is to review the balances for the year for each account that holds a balance