Question on equity account(s)

Managing equity accounts in QuickBooks Desktop (QBDT) is an important task, Deadwood. Let's dive into some helpful information about this topic.

Big Red is right about some account types that aren't changeable; however, you can set up multiple equity accounts. To do so, you can follow the steps below:

1. Open your QBDT account.
2. Go to the Lists menu, then choose Chart of Accounts.
3. In the Account ▼dropdown, select New.
4. Choose an account type, then click Continue.
5. Complete the account details.
6. Click Save & Close.

Refer to this article for more details on adding accounts in QBDT: Add, edit, or delete accounts in QuickBooks Desktop. Please note that the year-to-date income or net loss will still be posted to the default equity account created by QuickBooks.

Moreover, if you have multiple equity accounts, you'll need to create a Journal entry to transfer your net income and loss to the equity account you've created. Upon doing so, It's advisable to have a backup of your data and consult your accountant for guidance. If you need an accountant, visit Find a QuickBooks ProAdvisor for assistance.

Additionally, I'll provide this material that discusses creating journal entry reports in QBDT for an overview of your account transactions: Use the transaction journal report in QuickBooks Desktop.

Drop a comment below if you have any other questions about your equity account QBDT. I'll be sure to help you out. Keep safe!

Well, thank you for the response, but ... you didn't directly answer my question. It sounds like QuickBooks did establish the account used for closing entries and that I can't change that, true? So then my last paragraph would apply. I assume I can change the account name and then create a new Equity for Equity Balance to JE the Current Year Change total into the new account so that the Current Year Change account (the one QB has established as the closing account) can be zeroed out at the start of a new year.

Yes? No? Clear answers please.

Yes, you're correct, Deadwood. There are accounts established by QuickBooks that cannot be changed. However, you can set up multiple equity accounts and create a journal entry after, like my colleague suggested. I'll provide some more information to help with this.

In QBDT, the default equity account, automatically created when you establish your company file, is used to close your accounting entries. Although this name cannot be modified, you can still manage your fiscal responsibilities efficiently by transferring your net income and losses through a journal entry to any additional equity accounts you’ve set up, as my colleague previously mentioned.

After making these transfers, consulting with your accountant can provide deeper insights and ensure everything aligns with best practices. If you're in need of a qualified professional, our QuickBooks ProAdvisor is at your service and just a click away.

Moreover, you can refer to the following article for comprehensive information on effectively closing your fiscal year in QuickBooks Desktop: Year-end guide for QuickBooks Desktop.

As you manage your equity accounts, remember that I'm here to provide support through the process. If you have any questions or need further assistance with your accounts, please revisit this thread. The Community and I are committed to offering prompt and thorough assistance in this forum. 

@LouiseG  - Thank you for your response.  One comment .... Not sure why you sent me a link to Year End Guide to QuickBooks Online when I clearly indicated in my previous posts that I have QuickBooks Enterprise ... maybe y'all should not be so quick to assume everyone has QBO.