Dictionary / Preclosing Trial Balance
What does Preclosing Trial Balance mean in accounting?
Quick definition
Financial reportingA trial balance prepared before giving effect to final adjusting and closing entries. This term guides how bookkeepers record, classify, and explain related transactions in routine financial reporting.
Read more below
Examples
December list still shows sales and wages
You run a bike shop. On January 3 you export Trial Balance from QuickBooks Online as of December 31: Sales $167,350, Shop wages $44,880, Checking $12,075, and the wheel truing stand $3,920. You have not posted December depreciation on the stand or the $1,775 of shop wages still owed. That list is the preclosing trial balance: income and expense still show, and the final adjusting entries and closing entries have not been given effect. Keep this file; do not treat it as finished year-end books until those journals are in.
Closed-year export sent as preclosing
You run a music studio. On January 17 your CPA asks for the preclosing trial balance as of December 31 so she can enter depreciation and accruals. You already closed the year in Xero and export Trial Balance: Checking $7,360, the upright piano $9,820, Accounts payable to a sheet-music supplier $615; Lesson income and Studio rent are gone. That is a post-closing trial balance, not the preclosing list she asked for. Restore the earlier export, or reopen the period and rerun the report while income and expense still have balances, then send that file.
Why it matters
You print a preclosing trial balance after the year's activity is in the general ledger, and before you post the last adjusting entries and closing entries. That is usually once a year when the accounting period ends, not every month-end. Income and expense accounts still have balances, so you can see what still needs depreciation, accruals, or other year-end journals on that unadjusted trial balance. Skip it, or send a post-closing trial balance instead, and you close or adjust without a snapshot of those open P&L lines.
Further reading
Compare this term with reference material from other accounting and finance websites.
Keep learning
Start with the bookkeeping basics, then compare software when you are ready to pick a tool.
Getting startedBookkeeping basics for small-business ownersWhat bookkeeping is, the records you need, double-entry in plain English, and a monthly rhythm that fits a 1–50 person shop.Updated October 4, 2026
RolesWhat does a bookkeeper do?A bookkeeper records bills, invoices, and bank activity so your books stay current. See the weekly work, the month-end close, and what they do not do.Updated August 18, 2026
Monthly closeMonthly bookkeeping: what to close each monthMonth-end is the job: reconcile banks and cards, age bills and invoices, check payroll, then read the reports. A close checklist for small-business owners.Updated August 18, 2026
Receipt CaptureThe 7 Best Receipt Capture Tools for Small BusinessThe 7 best receipt capture tools for small business, ranked: OCR accuracy, QuickBooks and Xero sync, real pricing, and honest tradeoffs for each pick.Updated August 9, 2026Frequently asked questions
What is Preclosing Trial Balance in bookkeeping?
A trial balance prepared before giving effect to final adjusting and closing entries.
When should I use Preclosing Trial Balance?
Use Preclosing Trial Balance when the transaction facts match its definition and you need the ledger and financial statements to reflect the correct account and period.
What is a common mistake with Preclosing Trial Balance?
Preclosing Trial Balance is used for preclosing trial balance entries, while Paid-In Surplus covers a related but distinct bookkeeping purpose. Review both terms before posting unusual transactions. A common mistake is applying it by label only instead of checking the underlying transaction details.