Hi,

I am using Microsoft Money to do my husband's small company's books (Canada)
If it's a sole proprietorship, do I really need a trial balance and balance sheet?

Thanks
Jeanne

It shouldn't take you that long using a computer program to come up with a Trial Balance and Balance Sheet, therefore I strongly recommend that you prepare one.

But, you asked, do I have to? The answer to that question is no, you do not. The government only cares how much income you make, which is an income statement question.

But once again, I would like to stress on the trial balance and balance sheet, as they will be VERY useful tools when trying to analyze the business.

What is a trail balance sheet

What is a trai balance and how to get started

Formate of trial balnce and balance

A trail Balance shows that your Debits = your Credits.

If your Debits do not = your Credits then you have a posting error somewhere.

The format for a Trial Balance is Excel or a Worksheet.

Column one lists all your accounts in sequence.
Column two is your Debit Balances
Column three is your Credit Balances

At the bottom of Column 2 and 3 you total your balnces. Your Debits and your Credits should be the same amount.

What type of accounts is general reserve account ?