Your Retained Earnings account shows the total of your company's income and expenses from all previous years.
When a new financial year starts, QuickBooks Online automatically adds the net income from the previous financial year to your Balance Sheet as Retained Earnings.
To view your Retained Earnings in the Balance Sheet:
- Select Reports.
- Locate and select the Balance Sheet to open it.
- In the report, locate the Retained Earnings item to see your company's reported net income.
You can distribute the amounts in the Retained Earnings account at the end of your financial year using a journal entry. The Debit column will decrease while the Credit will increase your Retained Earnings account.
Remember that you must offset every debit with an equal credit.
|Note If you are not sure which account to offset, consult your accountant.|