In Sage 50, the total of your Income, Expense, Costa of Sales, and Equity-Gets Closed will close out to your Retained Earnings account. If you run General Ledger for your retained earnings on the first of January, you will see an entry posting the total of those accounts. Check out Sage's great knowledge base article here for more information! 

Thank you for your quick response. I found information on the Retained Earnings in the Sage Knowledge Base and forwarded that to my boss (who is a CPA) and he insists that is not our problem. Because it is a problem with UNDISTRIBUTED INCOME, he wants to know why that is not matching up. Any idea how to explain this to him?

What does he say the problem is with undistributed income exactly? Do you know about our new complimentary support offering Sage Q&A Live where you can join a live forum and get direct assistance from a Sage Expert on topics such as Year End Processing? Join Here!

I am running a report for the GL account Undistributed Income NOT Retained Earnings. The report for Undistributed Income is from January 1, 2019 to December 31, 2020. The ending balance of Undistributed Income for December 31, 2019 is $54447.68 LESS than the beginning balance of January 1, 2020. I have tried Sage Live and have been told I have to call technical support. I have been trying for 2 weeks to call technical support and keep sitting on hold - I have never been able to speak with anyone directly yet. 

If the balance is lower prior to the end of the closing than it is in the new year and you do not see an entry such as a general journal entry, you will want to run the chart of account journal sync test to correct that. Click here for instructions on how to run that test. 

Sage Q&A Live is a different support option than Live Chat that I highly recommend you giving a try. This is a much faster option to get your answer resolved than calling into phone support.

Ahhh - I understand what you were saying about the Sage Q&A Live. I will definitely try that! And thank you for the info about Sync Test. I will give that a try, too. Thanks again!