Quickbooks retained earning shows your business profit and loss of the previous year. And when the new financial year starts then Quickbooks online automatically add the previous year’s net income into your current year balance sheet as retained earnings. And if in the current year your total assets and total liability are equal in the balance sheet. Then your retained earning will be zero for the current year. So you have seen how to zero out retained earning in Quickbooks. So let’s see it deeply. In this blog, we will discuss both types of QuickBooks whether its desktop version or QuickBooks Database Server Manager.
How do I adjust retained earnings in QuickBooks?
Retained earnings tell your past income of the business. When you close your accounting year in books. Then you have some profit balance retained. And this retained earning is directly transferred to next year’s balance sheet as retained earnings account. And this will be updated automatically when a new closing date occurs. But you can also change the closing date by these simple instructions.
- Open your Quickbooks and click on the Edit menu from the menu bar
- Now you need to select preferences and then select Accounting option
- Select date/ password from the company preferences
- After that specify the closing date and password, and then confirm it in the next box.
Read More : QuickBooks Support
How To Zero Out Retained Earning in Quickbooks?
There is no legal way to zero out retained earning in Quickbooks. But if you have done any mistake in entering an amount in the income statement. Then you can have zero out retained earnings in Quickbooks. You can correct it by examining the financial report of your firm. You should also check your journal report and general ledger.