After the books have been officially closed for the accounting period, you might think the process is over. But there’s one final checkpoint that ensures your financial records are ready for the next cycle—the post-closing trial balance. 



This final review step helps verify that all temporary accounts are reset to zero, and only permanent accounts carry forward.

What Is a Post-Closing Trial Balance?

A post-closing trial balance is a report prepared after all closing entries are completed. It lists the ending balances of all permanent accounts (assets, liabilities, and owner’s equity) to ensure that the books are correctly closed and balanced.

Purpose of the Post-Closing Trial Balance:

        ✅ Verifies that total debits equal total credits

        ✅ Ensures temporary accounts are zeroed out

        ✅ Confirms that only balance sheet accounts remain open
    
        ✅ Serves as the starting point for the next accounting cycle