Statement of Retained Earnings
Definition
A statement reconciling opening retained earnings to the closing figure by adding the period profit and deducting dividends or distributions. It explains the movement linking the profit and loss statement to the balance sheet.
Related Terms in Core Accounting
Statement of Cash Flows (Indirect Method)
A cash flow statement that starts from net profit and adjusts for non-cash items such as depreciation and for movements in working capital to arrive at operating cash flow. The indirect method is the common presentation because it reuses figures already in the ledger.
Financial Statements
The standard set of reports describing a business: the balance sheet, the profit and loss statement, the cash flow statement, the statement of changes in equity, and the accompanying notes. Together they show position, performance and cash generation.
Accounts Payable (AP)
Money your business owes to suppliers and vendors for goods or services received but not yet paid for. Tracked as a current liability on the balance sheet. HelloBooks automates AP with purchase orders, GRN matching, and vendor bill management.
Accounts Receivable (AR)
Money owed to your business by customers who received goods or services on credit. Tracked as a current asset. HelloBooks manages AR through invoicing, payment tracking, aging reports, and automatic reminders.
Stop memorising terms — let HelloBooks do the work
AI-assisted bookkeeping that handles invoicing, GST, reconciliations, and reports automatically. Free to start.