Choose your...

Country Language
Don't miss out
Subscribe to QuickBooks and
get 90% off for 6 months
Claim now
MAY SALE
Claim now
MAY SALE
Buy now and get
90% off for 6 months
See plans & pricing
$1/month
for 12 months
When purchased in bundles of 10
50 %off for 3 months
50 %off for 12 months
  • Invoices
  • Expenses
  • Reports

What are Retained earnings?

Retained earnings (Definition)

Retained earnings are the portion of a company's profits that is retained for reinvestment rather than being distributed as dividends. They are recorded in the shareholder's equity section of the balance sheet at the end of each accounting period. Retained earnings can be used for a variety of purposes, including working capital and fixed asset purchases (capital expenditures), or they can also be used to pay off debt. The Statement of Retained Earnings is a summary report that details the changes in retained earnings throughout the course of a specific period, and at the end, a significant amount of retained earnings reflects a healthy business.

Ready to run your business better with QuickBooks Online?