I feel I would have a better understanding of my balance sheet without the accumulation of retained earnings. I do not need it for any kind of valuation. Is it advisable to zero out retained earnings end of year and how is that done.
Let me help share some insights about reconciling your year-end in QuickBooks.
QuickBooks adjusts your Income and Expense accounts at year-end to zero them out so you start your new fiscal year with zero net income. On the first day of the new fiscal year, QuickBooks increases your Retained Earnings equity account by the previous year's net income and decreases your net income by the same amount. This way, you start each new fiscal year with a net income of zero.