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Level 1

Retained Earnings Missing Entry, End of Year

Our fiscal year ends August 31.  Each year I see an entry except for last year.  It seems that quickbooks automatically generates this entry, but last year it didn't.  What do I need for it to do, to take the actual - minus budget amount and deduct it from retained earnings?  Thank you.

2 Comments 2
Kristine Mae

Retained Earnings Missing Entry, End of Year

Good day, Finance48.


Retained Earnings is an equity account that is automatically set up by QuickBooks. These are the accumulated year end balances of your business. At the end of each fiscal year (after all the invoices have been sent and all the bills paid), the negative/positive balance for your business is transferred to that account. The transfer brings your business' balance back to zero for the new fiscal year and helps you keep track of how your business accumulates or loses capital.


Our software allows you to draw from the Retained Earnings account through balance sheets, journal entries, or by writing a check. Though, I still suggest consulting your accountant on the best way to deduct from this account. 


Reach out to us if you need further assistance. While we can't provide an accounting advice, we want to make sure any technical questions you have about QuickBooks are answered.

Level 15

Retained Earnings Missing Entry, End of Year

Your "entry" is a Math computation. For any year end, run the Balance Sheet as of the Next Day. Not the final date of the fiscal year, but One Day Later.


This is Not what happens: "to take the actual - minus budget amount and deduct it from retained earnings?"


It's all Actuals. Budget is not part of this reporting.


Run the P&L Standard for the Entire Fiscal Year, Accrual Basis. Run the Balance Sheet Standard for the same Fiscal Year, Accrual Basis. Also run the Statement of Cash Flows for that same Fiscal Year (there is no Basis to set, here).


All three show the same Net Income line. That's how you know they relate; each shows a different perspective of the same data:

P&L = operational detail, contributing to or draining from the Organization

Bal Sheet= the Health and Wealth of the Organization at that Point in Time (the As Of date)

Cash Flow = where Funds were used and/or received


Now, on the top of the Balance Sheet, the As Of Date, set the date to One Date Later (Sept 1, 2018) and use the Customize button and checkmark to include Prior Period. That's where you see the Net Income or "rolled" into Equity as Retained Earnings for you (yours likely is supposed to be named "Unrestricted Fund Balance").


Now you can Double-click RE, to see the details.


Please see my attachment.

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