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Retained Earnings account balance after starting new financial year

jonesty
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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.

1 REPLY 1
jonesty
Experienced User
12 Posts
Experienced User
Experienced User

12Posts

3Kudos

2Solutions

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Re: Retained Earnings account balance after starting new financial year

For anybody also confused by the wonderful world of accounting, I asked my accountant and apparently this is normal.

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