Can someone help with how I record dividends paid to directors in the UK (quickbooks online)? I'm not an accountant and there is a lot of posts out there that confuse me.
Here is the scenario -
Quickbooks online brought in the new transactions automatically under the Banking section. I now have to categorise them. How do I do that? Is it an Expense, I am not sure. I always thought dividend were payments out of profit. How do I record this? If possible, can you spell out the sequence and exactly how I should record it (sorry for my ignorance)
My company recently declared a dividend payment of £20,000 to both shareholders (all the paperwork, vouchers and meetings were correctly followed). I made the relevant payments from the bank to the shareholders. Now I need to recognise this in quickbooks.
I have just spent 3 hours with QB support and they do not seem to understand this concept. Paying dividends is a basic company action. Why does a company who creates an accounting package for businesses NOT understand this and create an action for it. It really does beggar belief.
The user above asked for step by step instructions. All they got as a response was "pay it out of retained earnings" but no one can explain how.
So the question is, how do you pay it out of retained earnings and please don't say "write a cheque" if that is the answer please explain who you write the cheque to in order to pay the money out without it looking like a purchase on your P&O .
Hi, I am very new to Quick books BUT if you look you will find that there is a way of accounting for dividends as retained earnings.
You may need to undo the way that you accounted for it - well thats the way that I did it.
Re enter as a transfer and retained earnings from equity. This will then show up on your cashflow report as a reduction in retained profit.
Looks ok to me , but of course I might be wrong !