Thank you, this is what I read in the manual for QuickBooks desktop Mac, does QuickBooks online to all of these transactions automatically as well?…
Year-end adjustments QuickBooks makes automatically
QuickBooks performs certain year-end adjustments based on your fiscal year start month.
- QuickBooks adjusts your Income and Expense accounts at year-end to zero them out so you start your new fiscal year with zero net income.
- QuickBooks makes an adjusting entry to your net income. For example, if your profit for the year was $12,000, the equity section of your Balance Sheet shows a line for a net income of $12,000 on the last day of your fiscal year.
- On the first day of the new fiscal year, QuickBooks increases your Retained Earnings equity account by the previous year's net income ($12,000 in this example) and decreases your net income by the same amount. This way, you start each new fiscal year with a net income of zero.
