Understanding Retained Earnings in QuickBooks

Have you pulled your Balance Sheet and you are wondering where the “Retained Earnings” amount is coming from?
Let’s talk a little about what you’re seeing on your reports… 😊
Learn where retained earnings come from and why they are on the balance sheet.
➡️ Making reports Side by Side
Go up to Window
“Tile Vertically”/ “Tile Horizontally”
Cash Basis - At the moment you spend money it’s an expense, and at the moment you get paid from customers it’s Income.
Accrual Basis - At the moment you bill customers it’s Income, and at the moment you get the bill, it’s expense.
➡️ Profit & Loss
Has your Income, Expenses, Net Income.
➡️ Balance Sheet
Has your Assets, Liabilities, Equity.
➡️ Opening Balance
The account QuickBooks creates - a generalized account.
➡️ Retained Earnings
Profit you’ve made in the previous years.
➡️ Net Income
Current Year Profit
Timestamps:
0:00 - Intro
0:21 - Checking reports side by side
1:05 - Cash vs accrual basis
1:30 - Proft & Loss
1:41 - Balance Sheet
2:27 - Equity
3:06 - What is opening balance?
3:44 - Retained Earnings
4:27 - Net Income
5:01 - Negative in equity explained
5:50 - Why is retained earnings negative?
6:24 - Double-entry accounting
7:06 - Final Thoughts
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[@charity3105]

Thank you so much!!! I have been searching for this answer and nothing gave me the answer I was looking for! You explained and showed it so well!

[@CandusKampfer]

Hi Charity, I'm so glad this helped you! If you're looking for more QuickBooks training, I'd recommend joining us on our next workshop. You can save your seat here: canduskampfer.com/workshop Have a great day! Ireland Team Candus P.S. We’d love to connect with you! Find us on ↓ Instagram: instagram.com/candus.kampfer Facebook: facebook.com/CandusKampfer

[@BusinessCoachP]

I love all of your videos and especially the classical way of expressing difficult things in super easy way. I would like to inform you that you are my favourite channel on Quickbooks and I have great love and respect for you. May you live long. Love you.

[@BusinessCoachP]

I want to establish bookkeeping service organization that serve clients around the world. I hold MBA Finance, with over 15 years of experience. I am also Xero certified adviser; Will you please develop a video on tax filing in USA and Canada, so that I may learn more. Can you please attach me with you for bookkeeping? Thank you

[@elijahmackey9539]

The best explanation of Retained earnings and Balance sheet I have seen. Thank you.

[@CandusKampfer]

Awesome! Glad it worked for you! Elaine Team Candus

[@MJCPeters]

I totally had this wrong in my head. Now I get it, Thanks!

[@michellehoranentrywayreale3696]

You have a wonderful way of explaining all of this :) Thanks!!

[@CandusKampfer]

Yay! Glad it helped you Michelle! Elaine - Team Candus

[@ealen5545]

I wish I found you when I started the course, it's really a big help, Candus. You're also fun to watch.......

[@reniermolina1392]

Hello Candus, Great job explaining!

[@CandusKampfer]

Glad it helped you, Renier! P.S. If you would like to follow her on Facebook click here: facebook.com/CandusKampfer/ Elaine - Team Candus

[@iossorio]

Hi, very nice explanation and videos overall , if I buy one of your other courses, does the access to see these videos continue? meaning, does it expires?

[@CandusKampfer]

Thank you for watching the video! Due to the large volume of questions and emails we receive daily, Candus isn’t able to respond to all of them any longer. The courses she offers has lifetime access. If you are just starting out with QuickBooks or feeling overwhelmed and need help, register to join her next workshop here: canduskampfer.com/getting-started/ Have an amazing day! Elaine Team Candus

[@FireLiteCreations]

Hi Candus, how come your retained earnings in 2018 Balance Sheet does not match any numbers from the 2017 Profit & Loss? Where should it come from?

[@CandusKampfer]

Hi Richard, Thank you for reaching out to us! Due to the large volume of comments and emails, we receive daily, Candus isn’t able to respond to all of them any longer. We will add your question to our future tip requests. Please join the weekly tips and tricks to be notified when your question is answered. canduskampfer.com/tips If you would like to follow her on Facebook click here: facebook.com/CandusKampfer/ Have an amazing day! Elaine - Team Candus P.S. If you need help with QuickBooks, join her Live Masterclass, here is the link to save your seat:members.canduskampfer.com/quickbooks-masterclass-2020

[@shahidshahul4015]

Hi, Kindly explain how can we create 'Reserves and surplus' charts of account in Quick Book. Also in which group we create the same. Thank you

[@CandusKampfer]

Hi Shahid, Thank you for watching our videos! I will add your question to the list Candus uses to create new QuickBooks tips each month. If you haven't already joined our weekly QB Tips & Tricks emails and want to receive them, click here to join: canduskampfer.com/weeklytips/ and we'll send you our tips straight to your inbox. If you're looking for more QuickBooks training, I recommend attending her workshop. Here is the link to register to attend: canduskampfer.com/workshop Have a great day! McKenzie Team Candus P.S. We’d love to connect with you! Find us on ↓ Instagram: instagram.com/candus.kampfer Facebook: facebook.com/CandusKampfer

[@jaycee5664]

Hello there. So I started working with a new client and when analyzing the financial statements from previous yrs I noticed that Retained Earnings have a balance of 0 every year; it's like QB has not been doing the transfer as you explained. Can you please help?

[@CandusKampfer]

Hi Jay Cee! You can check out this video about Retained Earnings: canduskampfer.com/retained-earnings/ Candus uses the list to create new QuickBooks tips each month. Please join the weekly tips and tricks to be notified when your question is answered. canduskampfer.com/tips Have an amazing day! Ednalyn -Team Candus P.S. If you would like to follow her, click the links below ↓ Instagram: instagram.com/candus.kampfer Facebook: facebook.com/CandusKampfer/

[@edwinaragon4878]

Hello, I dont know if you made a video on this yet, but I just started my business, and on my 3rd year, and I have yet to take a wage for myself. I have no employee's and I'm a sole proprietorship. How would I take a wage and classify this in quickbooks as equity, and at the end of the year, how would I zero this out, if necessary

[@CandusKampfer]

Hi Edwin, Thanks for your question, I've added it to our list. Candus uses the list to create future tips and tricks. Don’t forget to join the weekly tips and tricks to be notified when questions are answered. canduskampfer.com/tips Have an amazing day! Elaine - Team Candus P.S. If you would like to follow her on Facebook click here: facebook.com/CandusKampfer/

[@battlemaniac007]

i am an accounting student. can anyone please explain to me how do we calculate retained ernings after trial balance? i have learned only double entry,ledgers,trial balance. i am now learning statement of profit and loss, statement of financial position.

[@CandusKampfer]

Hi Saad Mahmood, Thanks for your question, I've added it to our list. Once a month, Candus picks the top 10 questions and answers them Live on her FB page. If you haven't subscribed to Candus's Tips & Tricks yet, here is the link to join: canduskampfer.com/tips we'll send a reminder for her next Live top 10 answers. If you would like to follow her on Facebook click here: facebook.com/CandusKampfer/ Thank you for being part of Candus' community! Elaine - Team Candus P.S. If you need help with QuickBooks, join her Getting Started with QuickBooks workshop, here is the link to save your seat: canduskampfer.com/getting-started/

[@warrenguardiario7088]

Hi Candice like to know if you have an idea regarding what my concern.. What exactly happened was our list of customer exceeded to its limit of 14000list so we created a new company and create a enter all of those transaction basing on the previous company file that i have. In my previous file i got 25k retained earnings thats for accrual base report and got 65k on my accrual base. What exactly happened i reentered those entry to my new file as general journal entry when i check the balance sheet report... The 25k accrual base i was able to get it correctly but i noticed on my cash basis its higher than the original amount of what i expected to my old file... My question is im i doing it correctly if yes why my retained earning for cash base is not right. I did make some review about it even the journal entry i was able to make sure i entered it correctly based on my previous file information.. Other follow up question should i recorded it those entry as how it was created before rather than having a journal entry for those if i need to get the cash base correct. Please need your expertise

[@CandusKampfer]

Thank you for your question. It’s hard to answer when Candus can’t see it. She recommends talking to your tax professional. If you like the way she teaches you can join her Getting Started with QuickBooks workshop, here is the link to save your seat: canduskampfer.com/getting-started/ Have a great day! Elaine Team Candus

[@karlabejarano6185]

Hi, Can you do a video on budget?

[@CandusKampfer]

Hi Karla, Thank you for watching the video! I've added your suggestion to our list. Candus uses the list to create future tips and tricks. If you like the way she teaches you can join her Getting Started with QuickBooks workshop, here is the link to save your seat: canduskampfer.com/getting-started/ Have an amazing day! Elaine - Team Candus

[@kaveetagurav8523]

how to add opening and closing inventory value only

[@CandusKampfer]

Hi Kaveeta, Thank you for reaching out to us! Due to the large volume of comments and emails, we receive daily, Candus isn’t able to respond to all of them any longer. We will add your question to our future tip requests. Please join the weekly tips and tricks to be notified when your question is answered. canduskampfer.com/tips If you would like to follow her on Facebook click here: facebook.com/CandusKampfer/ Thank you for being part of Candus' community! Elaine - Team Candus P.S. If you need help with QuickBooks, join her Getting Started with QuickBooks workshop, here is the link to save your seat: canduskampfer.com/getting-started/

[@erosbackup1918]

I closed the books and then the owners personal expense is in the bal sheet and it's huge. I thought it would go away, like empty out. What am I doing wrong?

[@CandusKampfer]

Thank you for watching the video! Due to the large volume of questions and emails we receive daily, Candus isn’t able to respond to all of them any longer. If you are just starting out with QuickBooks or feeling overwhelmed and need help, register to join her next workshop here: canduskampfer.com/getting-started/ Have an amazing day! Elaine Team Candus

[@iamintractable1805]

I guess I dont see how 2120.44 on left is reflected on right when retained earnings shows 4443.14. What I needed to see was what numbers flowed into the new year.

[@CandusKampfer]

The 4,443.14 the the prior years retained earnings. The number on the left is the current years profit. The first day of the new year the prior years profit rolls into retained earnings.

[@iamintractable1805]

​@@CandusKampfer To be clear, it is the retained earnings from the previous year and 1 or more years priori to the previous year. An important element of understanding. This was not really explained clearly given this was a video on retained earnings.

[@theresapage3671]

Hi Candus, would it be possible to ask you a question in quickbooks privately

[@CandusKampfer]

Hi! Theresa, You can find out more at *canduskampfer.com/private-sessions-with-candus/* or email her at *Candus@**CandusKampfer.com* Have an amazing day 🙂 P.S. If you would like to follow her, click the links below ↓ *Facebook:* facebook.com/CandusKampfer/ *Instagram:* instagram.com/candus.kampfer

[@edlynagamata9879]

I cannot find retained earnings on my clients bookkeeping account.

[@CandusKampfer]

Hi Edlyn, Thanks for your question, I've added it to our list. Candus uses the list to create future tips and tricks. Don’t forget to join the weekly tips and tricks to be notified when questions are answered. canduskampfer.com/tips Have an amazing day! Elaine - Team Candus P.S. If you would like to follow her on Facebook click here: facebook.com/CandusKampfer/

[@CandusKampfer]

How many years have they been in business? You checked the chart of accounts and the balance sheet?

[@allanmbelenga2879]

I like the explanation but had hard time seeing what's on the video

[@CandusKampfer]

Hi Allan, Thanks for reaching out. I'm so glad you enjoyed the video! Thanks for the feedback. If you’d like to learn more about how to optimize QuickBooks for your business, I recommend checking out our Confidence with QuickBooks program. To learn more you can attend our Customizing QuickBooks workshop. Save your seat here: CandusKampfer.com/workshop Have a great day, Samantha, Team Candus