How to List Multiple Revenue Accounts on the Trial Balance
- 1). Create appropriate revenue accounts by adding them to the company's chart of accounts. The chart of accounts is the foundation for the general ledger. It contains every account an accountant needs to use for recording transactions. Multiple revenue accounts help companies segregate and report on sales from different product lines, divisions, or countries, for example.
- 2). Record the revenue data in the correct accounts. Accounting records depend heavily on the accuracy of numerical entries and the use of appropriate and descriptive account names. Recording the data properly into the specific revenue accounts results in detailed, insightful financial statements and other reports.
- 3). Generate a trial balance report. Most accountants use accounting software and the trial balance is one of the most commonly-used reports. The trial balance displays every account listed in the chart of accounts. Check the trial balance report to see if every new revenue account added to the chart of accounts has appeared on the trial balance report.
- 4). Review the trial balance report to verify that the revenue account balances make sense. Many accountants work with a high volume of accounting entries, and transactions sometimes get entered into the wrong revenue account. The trial balance can reveal errors such as an unexpected high or excessively low balance in your new revenue accounts. These errors are not as visible on the financial statements because many lines of accounting data are consolidated into fewer reporting line items.
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