Retained Earnings account balance after starting new financial year
Hi, I've just "rolled over" the financial year for the first time and noticed that the "Retained Earnings" equity account (in Chart of Accounts) is now showing a balance but it's been calculated on an accrual basis. I do all of my reporting on a cash basis so this looks strange and is different to what I see on my Balance Sheet report. Is this normal and is there a way to change it? If not, does it affect anything or can I just ignore it? Thanks.
For anybody also confused by the wonderful world of accounting, I asked my accountant and apparently this is normal.
