TRUE JOE WAYS: Retained Earnings Clearing Account



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Retianed earnings clearing account

This is a great idea, much easier to track unintentional or intentional changes to retained earnings during the year. This is especially good where you have not had a chance to finalize and close the year at the client's.

Robert P. Niedermann more than 1 year ago

Retained Earnings Clearing

Nice idea - I like it.

Gayle more than 1 year ago

Clearing Accounts

I've been using this method for many years. I learned about it from one of the Sleeter manuals. Maybe Joe helped write it? Other clearing accounts that I've found helpful are a Journal Entries bank account, and a "Sweep Account" bank account. The Journal Entries account is entered on the first line of all manually entered journal entries. No numbers are entered on that first line. Then the debits and credits are entered on the additional lines as usual. What this does is make a register for the Journal Entries account so you can easily track manually entered journal entries. The Sweep Account is handy for when you are recording the various transactions involving a remodel of a rental building. Each subcontractor's payment is entered into the Sweep Account. Then after the job is finished a "check" is written from the Sweep account for the total amount paid to subcontractors. If you are using the Fixed Asset Manager you can then set the total up as a fixed asset. If you're not using the Fixed Asset Manager you can just record the total into the Cost subaccount of whatever type of fixed asset it is. I picked up the Journal Entries trick also from Doug Sleeter. The Sweep Account came from another accountant.

John Stevens, EA more than 1 year ago

Retained Earnings

John really liked your approach on this

Jude more than 1 year ago

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