Some equity accounts, such as owner distributions or dividends, reset every fiscal year. Mark them so your balance sheet shows only the current year.
Mark an equity account
In Finance, go to Accounting → Chart of accounts and add or edit an account.
Set Classification to Equity.
Tick Closes at year-end, then save.
How reports change
On the Balance sheet and Trial balance, income, expense, and year-end-closing equity accounts show the current fiscal year only. Amounts from earlier years are combined into a single Prior years' earnings row. You can't drill into that row.
Retained earnings always shows its exact posted balance.
Debits and credits still balance.
QuickBooks and Xero sync never set this option, and a resync won't overwrite it.
Related: Using Hive Finance