QB Issue Resolution:
These are Different, and let’s examine how and why: “However, my net profit for 2018 shows 100k
And retained earnings in balance sheet for 2018 shows 3k
For both reports I run date: 1/1/18 – 31/12/18”
And this is not stated quite right: “I can understand the net profit should match retained earnings.”
RE comes from Net Income.
You run the P&L for your date range and see the Net income value at the very bottom. For that same As Of Date for that fiscal year end, you see this same value in Net Income as contributing to Equity. Not in Retained Earnings, but still part of Equity. It’s not until the First Date of the New Fiscal Year, that this amount seen from Net income “rolls” into RE for the first date of the new year, so that Income and Expense can start over at zero on that first date of the new fiscal year.
RE does not have a register view; it does not carry a balance in the chart of accounts. You Run Reports, to see the info.
Your First year of business, Net Income ends at $10,000, and for Dec 31, 2017. Run the same report on Jan 1, 2018, having no Financial activity on Jan 1, and now you see Net Income on the Balance Sheet is 0, and the $10,000 from last year is the RE value. it “rolled over” to be RE. Retained. Earnings.
End the second year the same way. That means on Dec 31, 2018, RE is $10,000 and Net Income from 2018 operations is $10,000. On Jan 1, 2019, Net Income is 0 (no business activity has taken place yet this year). RE = $20,000.
All of this assume you never took out any equity, either. All of this is part of Equity. It doesn’t matter how you slice and dice Equity, for Clarity. It all contributes to Equity. This is the Accounting Formula for why that is called a Balance Sheet = it is In Balance:
Assets = Liabilities + Equity
Resolution for Issue 'Why retained earnings is empty, but shows in report Hello, When I run a balance sheet report for last year I see retained earnings. I cannot click on it to see what it is made of. Also, it is blank when I go to chart of accounts and click “run report” for retained earnings, and select last year. How come it does not show what this number is made of ?' available: Yes (Solved).
Source: Intuit Community forum.
Why retained earnings is empty, but shows in report Hello, When I run a balance sheet report for last year I see retained earnings. I cannot click on it to see what it is made of. Also, it is blank when I go to chart of accounts and click “run report” for retained earnings, and select last year. How come it does not show what this number is made of ?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.Support for QBO
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