The Retained Earnings Account is a business’ record of their net earnings that have not been distributed to its shareholders as dividends. Essentially, this account stores the money from a company’s profits that it has decided to hold onto rather than pay out as dividends. Typically, companies use the funds in this account for reinvestment into the business. This can include things like expanding operations, purchasing new or upgraded equipment, or investing in research and development. Retained earnings can be a valuable tool for any business looking to plan for future growth and solidify its long-term financial health.