Its prepared at the end of the month before adjustments are made in the books. It is a culmination of all the balances from the Posting Journal. It is used to see if all journal entries are posted correctly and uncover any posting errors.

Once the trial balance has been prepared, then you will move into the adjusting and closing process at the end of the month. All income statement accounts will be closed, earnings will be assessed, and the process will restart in the next month.