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Younan
January 31, 2024
Question

Retained Earnings

  • January 31, 2024
  • 1 reply
  • 0 views

hi ,

I am new to QB , the person worked before me had a Retained Earnings and it move from 22 to 23 and now to 24 .

I want to delete that amount to make it zero starting 1/1/2024 . any help 

1 reply

R
Rasa-LilaM
January 31, 2024

It's nice to see you in the Community, Younan.

 

I can see how vital it is for your company to zero out retained earnings to start the fiscal year with a net zero income. Allow me to direct you to the appropriate support that can guide you on how to properly handle this matter.

 

 The retained earnings account allows you to monitor the capital available for your business expenses. Clearing the account gives you convenient access to information from past accounting periods, including transaction details.

 

In situations like this, I recommend reaching out to your accountant for further guidance. They can offer advice on the best way to correct the amount and provide methods to resolve the issue.

 

In the event that you need to make a journal entry and set up an account for debit or credit purposes, the following resources will offer a comprehensive overview of the entire process:

 

I've provided a range of resources for you to explore. Each link below contains valuable information on closing your books and setting a password, as well as tasks to prepare for the year-end season. Feel free to click on any of the links to view the complete details:

 

Should you have any additional queries regarding managing your retained earnings information or if you need any further assistance with QuickBooks, please feel free to let me know. I'm always ready to offer the help and support you require. Have a fantastic day, Younan.

Y
YounanAuthor
February 1, 2024

Hi, thank you for your answer but I don't have anyone to help correct that , what I need is how to make the Retained Earnings to be Zero as of 1/1/2024 , What I should do ?

I can't do JE for that account and can't movie it anywhere , it must be zero .

Thank you 

Rainflurry
Rainflurry
February 1, 2024

@Younan 

 

What type of business is this (sole proprietorship, S-Corp, etc.)?  Why do you think it should be $0?  Retained Earnings (R/E) should carry forward on your balance sheet from year to year.  You only close it out if you're moving it to another equity account or you have taken it out of the business.  

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