Retained Earnings is the account that represents the accumulated net earnings of your company. The amount in this account changes automatically as of the first day of each year. The total income less the total expenses for the prior year (net income) flows into this account. QuickBooks automatically closes all income and expense accounts and places the company's net income in the Retained Earnings account. A relatively new feature of QuickBooks (available since the 2005 version) allows you or your accountant to view the information in your Retained Earnings account by producing a QuickReport. The automatic closing entry appears on the report with the description Closing Entry.