Retained Earnings
Accounting & Bookkeeping Glossary
Definition
Retained earnings are the cumulative profits your business has kept (retained) rather than distributed to owners. They show up on your balance sheet under equity. Healthy retained earnings mean the business is building value over time. If your retained earnings are negative, the business has lost more money than it's made over its lifetime — a red flag for lenders.
Need help with retained earnings?
Learn more about our professional bookkeeping services and how we can help your business.
Professional Bookkeeping ServicesRelated Terms
Need bookkeeping help?
Let Steph's Books handle your books so you can focus on running your business.