We noticed that the retained earnings for 2023 carried forward was different from 2024, what can cause this?

Hi there, Dian. In QuickBooks Online (QBO), the differences in equity can be caused by several factors. Allow me to outline it below.

These are:

• Transaction changes in income, expenses, and distributions can affect equity.
• Manual adjustments or corrections made to accounts can lead to discrepancies.
• Errors during bank reconciliations may impact reported equity.
• Any contributions or withdrawals by owners will directly affect equity.
• The choice between cash and accrual accounting can influence how equity is reported.

Also, I suggest pulling up the Profit and Loss by Year report and Retained Earnings Account Quick Report to compare and learn the difference. I'll show you how.

1. Go to the Reports menu and select Standard reports.
2. From the Type report name here box, enter the Profit and Loss by year report.
3. Select the report to open it.
4. Customise the reporting period and other details needed.

To get the Retained Earnings Account QuickReport:

1. Go to the Transactions menu and select Chart of Accounts.
2. Locate the Retained Earnings account.
3. From the Action column, click Run Report.
   
4. Customise the reporting period and other details the same as in the Profit and Loss report to compare.

Check out this article for more details on customising and how to save it for easy access if you need to run the same report in the future in QuickBooks: Customise reports in QuickBooks Online.

Feel free to reach out f you have any questions about retained earnings or equity differences in QBO. The Community space is always available for additional support.