Are you trying to understand what are retained earnings in QuickBooks? We have received thousands of requests from small and midi-size businesses who wants us to explain what is retained earnings in QuickBooks.

In this blog post, we will cover everything there is to know about retained earnings in QuickBooks and also explain to you how does QuickBooks calculate retained earnings.

If your QuickBooks retained earnings account is missing or you are facing any problem with your retained earnings in QB, don’t hesitate and just give the Intuit certified QuickBooks ProAdvisors of supportforerror a call. You can dial the toll-free QuickBooks Support Number +1866-656-1012 to get in touch with the QuickBooks Experts.

Now, let us continue.

In QuickBooks Online, the online portal will display the profits that a company earned in a fiscal year and then reinvested the amount into the company as Retained Earnings.

QuickBooks Online is programmed to automatically transfer or move money into the Retained earnings account at the end of each year. Also, QBO will not generate any report unless and until you make other entries in the QuickBooks Retained Earnings account.

Now, if you wish to view what makes up the Retained earnings for your company or business, you can choose to run a Profit and Loss report. In this report, you can click on the view details button to see the Net Income (loss) amount.

In the QuickBooks Retained Earnings account, you can also view the total income and expenses of your company for any year. QBO will add the net income from the last financial year in the balance sheet at the beginning of a new financial year.

We hope that you understand what are retained earnings in quickbooks. However, if you are still confused then do not think twice before giving the QuickBooks Experts a call. You can also click on the QuickBooks Chat icon at the bottom of this page. Click on the Message field and type What are retained earnings in QuickBooks. Click on the submit button. You will get an answer for your question in the chat itself.

How To Find Retained Earnings In QuickBooks?

If you want to find retained earnings in QuickBooks for your company then simply keep reading. As we said earlier, the Retained Earnings account will contain all the information about your company’s or business’s income and expenses from all earlier years. But you cannot merely click on the Retained earnings in your Balance sheet for viewing the details.

Retained Earnings account is a massive collection of information for all the earlier financial year’s net profit or loss. So if you want to find retained earnings in QuickBooks then you must firstly run the last year’s Profit and loss statement.

Steps To Find Retained Earnings In QuickBooks

Step 1: View the Profit and Loss Detail report

  • Open Reports and choose Profit and Loss report. Press Ctrl+F on your keyboard and type Profit and Loss if your unable to view the report.
  • Choose All Dates in the Report period drop down menu.
  • Click on Run report button.
  • Choose Net Income amount if you want to view the Profit and Loss Detail report for All Dates.

Now, you will be able to view all the transactions that account for the net profit or loss. QBO automatically move this money into your Retained Earning account.

Step 2: View the Profit and Loss report by year

The QuickBooks Experts recommend that you run Profit and Loss report by year if you want to accurately track Retained Earnings for all the years.

  • Open Reports and choose Profit and Loss report. Press Ctrl+F on your keyboard and type Profit and Loss if your unable to view the report.
  • Click on Customize option in the open Profit and Loss report.
  • Choose Rows/Columns in the customize report panel.
  • Click on Year in the Columns drop-down menu.
  • Choose Run report.

The report will display the year-by-year Profit and Loss amount transferred in the Retained Earnings. However, if you see mismatch between the Retained Earnings account for the current year and the Profit loss report, you should take a look at the account QuickBooks Report.

Step 3: Review the Retained Earnings account Quick Report

Follow these steps if you want to review the retained earnings account QuickBooks report:

  • Click on Settings and then choose Chart of Accounts.
  • Look for the Retained Earnings account.
  • Click on the Action drop-down menu and choose Run Report option.
  • Choose Dates in the Report period drop-down menu.
  • Click on Run Report.

Now, a report will appear on your screen which will contain detailed information of user-created transactions affecting the Retained Earnings account figure.

How Does QuickBooks Calculate Retained Earnings?

To put it simply – retained earnings is a sum of a company’s undistributed profit over the years.

QBO will automatically transfer the annual profits in the retained earnings account at the end of the financial year. The company will pay the shareholders in terms of dividends and they will be subtracted from the profits. Now, the company will be left with retained earnings for the year.

We hope that we answered your question: How does QuickBooks Calculate Retained Earnings?

What Type Of Account Is Retained Earnings In QuickBooks?

QuickBooks will automatically create an equity account for your company. This account is called Retained Earnings. Also, QB will automatically transfer the balance from your company’s other accounts to Retained earnings at the end of the fiscal year. You can also decide the closing date for your business.

If you want to get in touch with us, call on the toll-free QuickBooks Support Phone Number +1866-656-1012.