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Level 1

I would like to pay out dividends from my company. How can I track this on quickbooks?

 
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QuickBooks Team

I would like to pay out dividends from my company. How can I track this on quickbooks?

HI there Nathan,

 

Welcome to the QuickBooks Community! You've made a great choice using QuickBooks Online to manage the books for your business. We're proud to offer a robust small-business accounting software that makes it easy to stay organized. It's important that you're able to track and record money movement for all types of transactions, so I'd like to point you in the right direction to help you pay out dividends from your company.

 

It's common for QuickBooks users to create a Retained Earnings or Liability account to keep track of dividends, and then record journal entries to show the money movement to and from those accounts. When it comes to the specifics such as which type of account you should set up for your business, and which accounts to debit and credit with the journal entry, your accountant will be your best resource.

 

Invite your accountant to work with you in your QuickBooks account by using the Invite function from the My Accountant tab. If you're not yet working with an accountant, you're in luck. We have a database of QuickBooks-certified accountants that are at your disposal should you like to work with one of them. From the My Accountant tab, use the Find a pro to help button to get you on your way to a new accountant. 

 

In the meantime, I have a few articles that I think will be helpful. These provide you with the steps to add a new account to the Chart of Accounts in order to get you set up to properly track your dividends, as well as how to create a journal entry. I hope you find these helpful.

 

 

I know that with the help of your accountant, you'll know how to properly account for the money movement involved in paying out dividends. Enjoy your weekend.