Retained Earnings

Hi there, @vytronaccounting.

In QuickBooks Desktop (QBDT), once you create a new company file, the Retained earnings account is automatically added to your Chart of Accounts. Thus, being able to delete default accounts is not an option. 

Then, when closing out your books, there are closing entries made at the end of the fiscal year to transfer the balance from the Income and Expense accounts to Retained Earnings. In which its main goal is to zero out your Income and Expense accounts, then add your fiscal year's net income to Retained Earnings. 

As for your concern, in selecting the created Retained earnings account to close all the income statement account, it's not possible as of the moment since QuickBooks uses the default account. You may consider transferring the amounts manually from the default Retained earnings account to the created one. But before doing so, I recommend checking with your accountant to ensure your books are accounted for correctly. 

To learn more about managing your Chart of Accounts and how to close your books, see the below articles:

• Learn about the chart of accounts in QuickBooks
• Add, edit, or delete accounts in QuickBooks Desktop
• Close your books in QuickBooks Desktop

For future help, you can visit our Reports and Accounting articles if you need some related references in managing your accounts and transactions.

Stay in touch if you have any other questions. Have a great day ahead. 

It makes sense that you would not be able to delete a default account, but mine is gone. I deleted it, and did not just make it inactive. Is there a way to get it back? What will happen when I close my books with no default retained earnings account?

We're unable to delete a default account, Vytronaccounting. Let me help you sort this out.

First, let's check through the inactive list. Then, from there, we can see the account in question. Here's how:

1. Click Lists.
2. Go to Chart of Accounts.
3. Tick the Include inactive box below.

There's an X mark beside an inactive account. You can now look for retained earnings.

If you're unable to see it, the account may be renamed. You'll have to look for an Equity account. If you have found it, you can rename it back to Retained Earnings.

With regards to if the book is closed with no retained earnings, only revenue, expenses, and dividend accounts are closed - not asset, liability, common stock, or retained earnings accounts.

Also, you can pull up the Balance Sheet report. It will show you the Retained Earnings amount. Additionally, you can customize the report to show the details that matter to you.

Feel free to let us know if you have other concerns. We're available 24/7 to assist you. Keep safe!

For the inactive list, I cannot check the inactive box, it is grayed out (assuming this is because there are no inactive account because when I make another account inactive, I can then check that box). 

For the equity accounts, I sorted by account type and took a screenshot of all the equity accounts (they appear to all be ones that I added). The retained earnings accounts are definitely ones I added because the default one would not let me create sub account for it. I attached a screenshot.

Please let me know what else might be the problem.

Let's perform some troubleshooting steps to get this sorted out, vytronaccounting.

I appreciate you for performing the recommended solutions provided by my colleague and providing us with a screenshot. In this case, we can try running the Rebuild Data tool to fix company file data issues. It's possible there's damaged data on the file causing this odd behavior on the software. Here's how: 

1. Go to the File menu, then hover over Utilities and select Rebuild Data.
2. On the QuickBooks Information window, select OK. Follow the onscreen steps to save a backup.
3. Let the tool repair your file. It may take some time. QuickBooks may seem stuck, but as long as you can move your mouse, the tool is working.
4. When the tool finishes, select OK.
5. Go to the File menu. Then hover over Utilities and select Verify Data.
6. Let the tool check your file for data issues.

If QuickBooks doesn't find any problems, tap OK. and if QuickBooks finds an issue with your company file, select Rebuild Now. To learn more about this one, see the Fix data damage on your QuickBooks Desktop company file article. Then, try creating a subaccount again by following the steps below: 

1. Go to the Lists menu and select Chart of Accounts.
2. From the Account dropdown, tap New.
3. Select an account type and Continue.
4. Enter the account details.
5. Select the Subaccount of the checkbox.
6. From the Subaccount of dropdown, choose the parent account.
7. Press Save & Close.

If the same thing happens, try repairing QuickBooks. Before diving, ensure to create a backup of your company file first. This way, we can restore your data if you ever run into problems. Once done, restart your computer to close the programs that may affect the repair. When you're ready, here's how to repair the software:

1. Open the Windows Start menu, then select Control Panel.
2. Choose Programs and Features then Uninstall a Program.
3. Select QuickBooks from the list, then click Uninstall/Change.
4. Hit Continue or Next.
5. Select Repair, then click Next.
6. Once it's done, select Finish. Please know that you may have to restart your computer to complete the repair.
7. Update your QuickBooks to the latest release to get the latest security update.

If the problem persists, I'd suggest contacting our Customer Support Team. They'll pull up your account in a secure environment and investigate what's causing this issue. You may send a message via chat, call us at a time convenient to you, or we’ll get in touch with you instead. To ensure we address your concern, our representatives are available from 6:00 AM to 6:00 PM on weekdays and 6:00 AM - 3:00 PM on Saturdays, PST. See our support hours and types for more details about this one.

Feel free to visit our Help Article page for more insights about managing your business on your software. 

Do you have other questions you want to add here? Just post them in the reply section and I'll be there to help you out.