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in this video i want to share with you how do you do your closing entries so one of the things we do at the end of every year is we close out our equity accounts into our retained earnings we technically do it on the first day of the next year and i want to walk you through how to do that so the first thing to know is kind of how retained earnings work and i've done a video on this before but i thought that'd be a great place to start and then we could talk about equity all right so to dive in the first thing we want to talk about is our reports and looking at our profit loss to understand our retained earnings so you're going to reports profit and loss and then you're going to look at let's just say last year because a lot of times people don't understand how retained earnings work how they close how quickbooks closes them naturally for you so i kind of want to show you how this works so first things first we pull up say last year and we'll see we have profitability of 91.25 so remem...
