Hey there, Ensobila. I'm here to provide some information regarding the negative retained earnings you're seeing in your report.
In QuickBooks Online (QBO), retained earnings is an Equity account that represents the company's profits to be reinvested or used later. It is the cumulative net income of a company that is kept by the company at a particular time. If the retained earnings are negative, it means that the balance of retained earnings appearing on the balance sheet under the stockholder's equity is negative.
Negative retained earnings happen when a company's losses exceed its starting retained earnings balance. On the Balance Sheet, for the current year, you will see the Net Income. For prior fiscal years, you will see it as Retained Earnings. To check your Retained Earnings, you can search it in the Chart of Accounts. Kindly follow these steps:
- Go to the Gear icon located at the left navigation panel.
- Under the Your Company column, click the Chart of Accounts.
- In the search bar, type Retained Earnings and double-click it
- You may customize it according to your preference.
In addition, I recommend reaching out to your accountant regarding the financial details that could affect your report. Their expertise and guidance can help you resolve this matter.
You can also utilize these articles to learn more about retained earnings:
Furthermore, you may want to learn about the chart of accounts in QuickBooks Online.
The comment section is always open for any additional questions or information you may have regarding any QuickBooks-related topics. We'll be right here to assist you.
