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LoisBuderus
Level 2

Retained Earnings/Merging companies

Good afternoon,

I am in the process of trying to merge two companies in QB Online.  I realize that "merging" will be done manually.  I am entering balances from the 2021 TB.  I am struggling on how to enter the balance in Retained Earnings to the company, what that entry will be.  As well as the balances of the expenses on the TB.  I hope I am making sense.

 

Thank you for whatever help you can give

 

Lois Buderus

Solved
Best answer August 11, 2022

Best Answers
Carneil_C
QuickBooks Team

Retained Earnings/Merging companies

Hi there, @LoisBuderus. I'm here to lend a hand with handling your retained earnings in QuickBooks Online.

 

As the new fiscal year starts, QBO will automatically add the net income from the previous fiscal year to your Balance Sheet as Retained Earnings.

 

Since you're manually merging your companies, you'll want to enter the balance in retained earnings using a Journal Entry. I'd be glad to show you how:

 

  1. Click the (+) New icon and choose Journal Entry.
  2. Arrange the date for the opening balance to match.
  3. On the first line, from the Account column, select Retained Earnings.
  4. Fill in the amount of the balance in the Credits column.
  5. From the second line, choose the account used to create the balance.
  6. Enter the amount in the Debits column.
  7. Click Save and close.

 

Please know that when selecting an account, it would be best to seek professional advice from your accountant to ensure the accuracy of your books. If you're not affiliated with one, you can utilize our Find an Accountant tool to look for one in your area.

 

For more details about retained earnings, please refer to this resource: How to view Retained Earnings account details.

 

Moreover, I've added this article for further guidance to keep your accounts, customers, and vendors organized: Merge duplicate accounts, customers, and vendors in QuickBooks Online.

 

Please let me know if you need further assistance with handling your retained earnings, or other QBO-related concerns. I'll be standing by for your response. Have a great day, and stay safe! 

View solution in original post

3 Comments 3
Carneil_C
QuickBooks Team

Retained Earnings/Merging companies

Hi there, @LoisBuderus. I'm here to lend a hand with handling your retained earnings in QuickBooks Online.

 

As the new fiscal year starts, QBO will automatically add the net income from the previous fiscal year to your Balance Sheet as Retained Earnings.

 

Since you're manually merging your companies, you'll want to enter the balance in retained earnings using a Journal Entry. I'd be glad to show you how:

 

  1. Click the (+) New icon and choose Journal Entry.
  2. Arrange the date for the opening balance to match.
  3. On the first line, from the Account column, select Retained Earnings.
  4. Fill in the amount of the balance in the Credits column.
  5. From the second line, choose the account used to create the balance.
  6. Enter the amount in the Debits column.
  7. Click Save and close.

 

Please know that when selecting an account, it would be best to seek professional advice from your accountant to ensure the accuracy of your books. If you're not affiliated with one, you can utilize our Find an Accountant tool to look for one in your area.

 

For more details about retained earnings, please refer to this resource: How to view Retained Earnings account details.

 

Moreover, I've added this article for further guidance to keep your accounts, customers, and vendors organized: Merge duplicate accounts, customers, and vendors in QuickBooks Online.

 

Please let me know if you need further assistance with handling your retained earnings, or other QBO-related concerns. I'll be standing by for your response. Have a great day, and stay safe! 

LoisBuderus
Level 2

Retained Earnings/Merging companies

Thank you, I was finally able to talk myself through the steps.  Your answer just made it clearer.

 

Lois Buderus

Kurt_M
QuickBooks Team

Retained Earnings/Merging companies

Hi there, @LoisBuderus.

 

I'm glad that my colleague's recommendation was able to help you with your query. You can always post here again if you have any additional QuickBooks-related concerns or need help performing specific tasks in QuickBooks. The Community is always open to helping you once again.

 

Thanks for choosing QuickBooks. Take care, and more power to your business!

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