Have you closed out your temporary Equity accounts for last year?
At the end of each year, QuickBooks closes net income into Retained Earnings yet Owner Draws or Shareholder Distributions needs a Journal Entry to be adjusted.
I created a how-to video to explain how retained earnings and Equity accounts work.
Tip: If you are behind on your closing entries you can go back and adjust one year at a time.
Looking for the training on “How to enter Depreciation into QuickBooks”.
0:00 – Intro
0:31 – how retained earnings work (Profit and Loss)
1:11 – Retained earnings in Balance Sheet
3:25 – Close into Retained Earnings (Journal Entry)
6:50 – Checking Balance Sheet (Retained Earnings)
7:02 – Checking Chart of Accounts (Retained Earnings)
7:23 – Candus Kampfer Final Thoughts
Join us on our next workshop to learn how to design QuickBooks for your specific business… https://CandusKampfer.com/workshop
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I’d love to hear if this inspired an “aha moment” and if you are ready to close your Equity accounts.