The negative retained earnings on your balance sheet indicate that losses from prior years have surpassed any profits earned, resulting in an overall deficit, Dhust. Allow me to elaborate further to clarify this for you.
If your beginning retained earnings are $0 and you distribute more than your current year's net income, it will result in negative retained earnings regardless of your bank account balance. Retained earnings capture the accumulated profits and losses over time, not your current cash position.
With that, I suggest consulting with an accountant to regularly review how you track depreciation and how you manage your financial records.
On top of that, when aligning your TurboTax balances with your balance sheet, consider reaching out to their support directly. They can provide detailed guidance to reconcile these balances with QuickBooks.
If you still need further assistance, don't hesitate to leave a post below.
