Retain Earnings Gone Negative

1

Hello all

i am using manager last 2 years but i notice my retain earnings gone negative how can i solve this and why its gone negative.

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2

Retained earnings balance is negative because more money has been removed from that account than added to it since the inception of the business. There are many possible reasons, none of which can be identified from the partial screen shot of your Summary page you posted. Two possibilities are:

  • You distributed more profits to your capital accounts than the business has yet earned.
  • The business has been unprofitable over the long term.
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