I need to make an adjustment to our retained earnings statement for the end of our fiscal year based off of our CPAs findings. Is it possible to just do a quick journal entry through the general ledger or will I not be allowed to change it that way? Any suggestions are greatly appreciated! Thank you!
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As far as I can tell, a quick journal shouldn't be necessary for this, but could also be used. If you know the final Retained Earnings balance, you could use the Retained Earnings account as the Offset Account and enter the final balance provided by your accounting firm as the Control Balance. You will then make adjustments against income, or dividends, or appropriations, or error adjustments against expenses. It all depends, what you are adjusting against. My personal choice would be a general journal, but if you foresee these entries to become common after an audit, then I would consider a quick journal for sure.
If the fiscal year is already closed, you can still book an entry in that fiscal year, i.e., an expense, revenue, etc., in the appropriate subsidiary, and GP will automatically roll the entry forward against retained earnings.
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