Skip to main content
D
dbacc
September 12, 2022
Question

Fix Retained Earning for Different Fiscal Year

  • September 12, 2022
  • 2 replies
  • 0 views

I'm working with a new company profile, operations started in July 2021. Fiscal year is 6/1 - 5/31. The fiscal year was not set in the account settings, so QBO automatically updated Retained Earnings on 1/1/22. I updated the fiscal year, but it appears that RE adjustment isn't updated. Now, the balance sheet for the true fiscal year end is wrong, beacsue it has this partial-year retained earning line.

 

How can I adjust this to get an accurate balnce sheet?

2 replies

Rainflurry
Rainflurry
September 12, 2022

@dbacc 

 

Under Accounts and Settings > Advanced > Accounting, did you also update the 'First month of income tax year' to be the 'Same as fiscal year'?  I recreated your issue and it worked for me - it booked the net income through 6-30-22 to RE on 7-1-22, with no entry to RE as of 1-1-22.

    G
    GlinetteC
    September 12, 2022

    I can share some insights about Retained Earning concerns, dbacc.

     

    Retained Earnings are the sum of net profit from previous years. When a new fiscal year starts, QuickBooks Online automatically adds the net income from the previous fiscal year to your Balance Sheet as Retained Earnings. Check this article to learn more about Retained earnings in QBO: How to view Retained Earnings account details.

     

    You'll want to review your closing date and ensure the accounting method is correct when running the report.

     

    Also, I recommend reaching out to your accountant, so they can provide additional options on how to adjust the amount. This way, you can ensure your books are accurate.

     

    If there's anything you want to add, please post them in a comment below. I'll be right here to help you more.

    A
    AbegailS_
    September 15, 2022

    Hi there, @dbacc. 

     

    Thanks for getting back on this thread. We value your feedback and product suggestions and I appreciate you sending some.

     

    These requests and suggestions are forwarded directly to the Product Development Team for consideration in future updates. This will also help them know how this feature will make your QuickBooks experience smoother.


    With regards to your account settings concern, for the changes to take effect, you'll need to click the Done button after you select save.

     

    Check out this article to help you personalize QBO to whatever you want: Edit company settings in QuickBooks Online.

     

    I'm also including our Help articles for related references in managing your account and transactions.

     

    The Community always has your back, so please let me know if you have any other questions. I'll be more than happy to help. Keep safe. 

    R
    rshires
    September 20, 2022

    I am having a similar issue and called support to no avail.  The client set up QBO wrong with "same as fiscal year" but they are calendar for tax reporting.  I updated in settings, but even though I saved, the reports are still reporting with 3/31 year end...how can I get help on this?

    R
    Rea_M
    September 20, 2022

    I can see the urgency of keeping your client's financial data accurate, @rshires. 

     

    Let's make sure your Report period sets for the Next Calendar Year or Last Fiscal Year date so your client's Retained Earnings account will show up in the Balance Sheet report in QuickBooks Online (QBO).

     

    You're on the right track in updating your client's Accounting preferences on the Account and Settings page. However, modifying your fiscal year-end date won't change any data in your client's account. The effect is not retroactive, especially when viewing your previous years' data.

     

    Thus, the update will affect report dates when generating new sets of reports or budgets. To check your client's net income as Retained Earnings, pull up a Balance Sheet report (from the Reports menu) and set the Report period for the Next Calendar Year or Last Fiscal Year. Please see the screenshot below for your reference.

     

     

    You can read this article to learn more about the Retained Earnings account in QBO: How to review Retained Earnings account details.

     

    Also, you may want to check out this article as your reference to guide you in closing your books to prevent unwanted changes before filing your taxes in QBO: Close your books in QuickBooks Online.

     

    Please let me know if you have other concerns about the Retained Earnings account and keeping your client's data accurate in QBO. I'll gladly help. Take care, and I wish you continued success, @rshires. 

    Terms & ConditionsAccessibility statement