Retained earnings are the amount of profit a company has left over after paying all its direct costs, indirect costs, income taxes, and its dividends to shareholders. On the Balance Sheet, and Balance Sheet by Class reports in Striven, Retained Earnings are automatically calculated based on the Net Income from the start of time to the end of the previous fiscal year. On the Trial Balance Report, it is based on the Net Income from the start of time to the End Date specified by the report filter, or today’s date, if the End Date is blank.
Striven provides the option to flag an Equity-type account as a Retained Earnings account to then be calculated into the actual Retained Earnings account amount on these reports.
For details about flagging an Equity Account as Retained Earnings in Striven, please refer to the Chart of Accounts section of our Accounting Setup Guide. You can also browse our Striven Business Software YouTube channel for other informative videos.