Retained Earnings in general refers to the grand total of the income and expense that happened from all your previous years. The annual profits are a part of the retained earnings.
Whenever the new fiscal year starts, QuickBooks automatically extract the net income from your previous fiscal year report and appends it to your Balance Sheet as the Retained Earnings.
In other words you can also say retained earning is that amount of profit which the company reinvests in itself to see the retained earning you need to check the profit and loss report and the net income.
How to View Details of the Retained Earnings Account
It is not possible to choose the retained earnings from the balance sheet and this is because the retained earning account is the sum of all foregoing fiscal years net profit and loss.
To see the details follow the steps provided below:
- Firstly open your QuickBooks Software.
- Then select the reports tab from the menu.
- Next navigate to the reports field and fill the profit and loss fields.
- Now select the Profit and Loss report.
- After that select the all dates option from report period drop down list.
- Further click on the run report option and select the net income amount.
By doing this, you can view the detailed report of all the transaction that sum up to the net profit and loss which QuickBooks automatically switches to your Retained Earnings account.
How to View The Amount of Profit and Loss Transferred in Retained Earning
- Firstly select the reports tab from the menu bar.
- Then go to the Report tab and enter the profit and loss fields.
- After that select the Profit and Loss report.
- Now select the Customize option in the upper right side.
- Then choose the Rows and Columns you want.
- Next you have to choose the calendar year or the fiscal year from the drop down menu.
- Further click on the run report button.
To avoid any sort of confusion you should always have following reports maintained
- Previous Retained Earnings.
- Adjustments to Retained Earnings.
- Dividends or Owner’s Draw
Issues faced by user while working in retained earnings
One of the issues says My balance in Retained Earnings in the General Journal does not match the balance printed on my management report. Please explain how to fix this.
Another issue says there is negative retained earnings, balance sheet out of balance. To resolve all these kind issues, you can contact our SMB helpline.
To Solve The Unexpected Results While Dealing with Retained Earnings
The unexpected error is like the previous year’s net income is not rolling over into Retained Earning and this error occurs because of the damaged data .
To resolve this error follow the steps provided below.
- Make sure you make the backup of QuickBooks company file.
- Then navigate to the company menu and select the chart of accounts option.
- After that right click on the retained earnings tab and select the QuickBooks retained earning option.
- Now move the entries to another account leaving the closing entries.
- Then locate back to chart of accounts and further select the delete account option by right clicking on the retained earnings.
- Now navigate to the Reports menu and select the balance sheet standard options from the company and financial tab.
- Next restart your QuickBooks and check.
Need Professional Help?
For any queries of QuickBooks and related software, without giving a second thought give us a call at our SMB QuickBooks Helpline Chat now. We assure you the quickest response as our SMB QuickBooks Product Helps is available 24*7 at your service.
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