Why are my Profit & Loss accounts showing a zero balance?

In QuickBooks Online, your Profit and Loss (P&L) accounts (income and expense accounts) may show a zero balance because of the automatic year-end closing process.

This is a standard accounting function. At the end of your fiscal year, QuickBooks Online automatically creates a closing entry. This entry zeroes out your income and expense accounts and moves the net amount (your net income or net loss) to the Retained Earnings account on your Balance Sheet.

This process ensures that your P&L report starts fresh at the beginning of the new fiscal year, while the cumulative profit or loss is preserved on the Balance Sheet. No manual action is required on your part to make this transfer.