Wheel balancing is something which is strictly concerned with the wheel and the tyre correlation. It refers to correcting the imbalance between The weights of the wheel and the tyre. Balancing is always done alongside wheel alignment to keep the weight and alignment coordination in sync.
Maintaining a balanced weight in the wheel/tyre combination is significant for a smooth and stable drive, less tyre wear and eliminating vibrations. Unbalanced tyres increase the risk of wheel and suspension damage massively.
An out of balance wheel may cause vibration to the vehicle. So it is recommended to balance tire-rim assembly if some vibrations are felt.