You’re also right about the next part. You then make adjusting entries to account for things like depreciation and accrued expenses. While not a required step, many accountants use a worksheet as a tool to organize this process. It’s a multi-column document that starts with the unadjusted trial balance, allows you to enter your adjusting entries, and then calculates the new, adjusted trial balance on one sheet. This makes it easier to spot errors and ensures the final numbers are correct before creating the official statements.