Retained earnings in QuickBooks
Firstly we need to know what is retained earnings.
Retained earnings is the amount of profit which we get in whole year by paying all the dividends and giving shares to all the shareholders.
In other words, the amount comes less all the expenses is the retained earnings.
Any company whether it will be big or small in size will be able to analyze their profit and losses at the end of financial year. Owner makes the income statement and profit and loss account to record the accounts and it will be helpful to prepare the balance sheet at the end of the year. Then the business takes out the amount of reatained earning and put it on the equity shareholder’s side in the balance sheet.
Retained earnings plays big role in every business.
How retained earnings work?
If we create a retained earnings account with the help of any software like QuickBooks. QuickBooks is the amazing accounting software that allows all of us to create reatained earnings account without any major mistakes. It helps in creation of accurate accounts and also to describe our business position.
If you are a user of QuickBooks then you don’t need to create reatained earning account because QuickBooks automatically create your account.
Find retained earning account in QuickBooks
Retained earnings always helps to shows the income and expenses of the company for the total year and to get the net income transfer it in the balance sheet.
You can follow these below steps if can’t find out your retained earning account in QuickBooks.
- Go to the reports
- Open your balance sheet
- Go to reatained earning items to know your company’s net income
If you are interested to create your company in QuickBooks. QuickBook automatically creates your reatained earning account and also helpful to automatically transfers all the profits of your reatained earnings account to make new account at the end of financial year.
After going to retained earning account, you need to distribute all of the previous years income in retained earnings account and also make sure that the debit side will be equal to the credit side.
How to find details in QuickBooks
If you want to see your details of retained earnings from balance sheet or if you can’t find out the details of your retained earnings account then QuickBook is very helpful.
If you want to know all the details then you need to run your all previous years P&L account.
- Locate the reports
- Choose the P&L report
- Select all dates in report
- Choose run report
- To view all the details of P&L report choose net income.
By following these steps you can view the details of P&L report that QuickBooks transfer to retained earnings.
There are some steps which will help you to view all the details year by year.
- Loacate your report
- Go to the P&L report
- Choose “customize” in P&L report
- Choose row and column under the customize
- Choose all years under the column.
Quick report in retained earnings
If in any case you find that your P&L report doesn’t match with the retained earnings, only the transactions may affect the balance sheet.
With the help of these steps you can find out the quick report.
- Choose “chart of accounts” in setting
- Go to retained earning account
- Select “run report” from action column
- Choose the dates under the report period
- Now you need Choose “run report” to see all transactions.
I hope you will now understand about the QuickBooks retained earnings. If you want to know more about QuickBooks retained earnings or need any type of related help and advice you can contact QuickBooks proadvisor
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