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AlanJM
Level 1

Dividend payment

Hello All,

New to QB, and would like advice on the step by step process to paying myself a dividend payment from the profits of the business - monthly or annually - and how to keep an accurate account of this dividend payment in QB

Thanks

 

Solved
Best answer November 11, 2021

Accepted Solutions
Kurt_M
QuickBooks Team

Dividend payment

Hello, @ AlanJM.

It’s our pleasure to have you here in the QuickBooks Community. Let me help you in setting up your dividend payment.

A dividend is the distribution of reward from a portion of the company’s earnings and is paid to a class of its shareholders.

Here’s what we can do to setup your dividends payment:

  1. Go to Accounting.
  2. Select Chart of Accounts and click New button.

These are the things we need to do in creating a new account.

  • Account type could be Expense, Liability or Equity.
  • Detail Type can be either Partner Distributions or Owner’s Draw.
  • Name can be changed to what you would like it to be, example: Dividends.
  • Default Tax Code: Out of Scope
  • Save

 

I’ll be providing a reference here if you wish to know more about how to create an account: Add an account to your chart of accounts in QuickBooks Online.

Once done, you can now use the Bank and the account you just created to write the check.

Here’s how:

  1. Click +New and then select Check. Choose the Payee from the drop-down ▼.
  2. From the Bank account drop-down ▼, select the account the check withdraws money from.
  3. Complete the check fields, then select Save and close.

 

Here’s an article if you want to know more about how to write a check. If you make a mistake, here’s how to void a check.

You can also seek advice from your preferred accountant as there are different ways to record dividends

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success

View solution in original post

8 REPLIES 8
Kurt_M
QuickBooks Team

Dividend payment

Hello, @ AlanJM.

It’s our pleasure to have you here in the QuickBooks Community. Let me help you in setting up your dividend payment.

A dividend is the distribution of reward from a portion of the company’s earnings and is paid to a class of its shareholders.

Here’s what we can do to setup your dividends payment:

  1. Go to Accounting.
  2. Select Chart of Accounts and click New button.

These are the things we need to do in creating a new account.

  • Account type could be Expense, Liability or Equity.
  • Detail Type can be either Partner Distributions or Owner’s Draw.
  • Name can be changed to what you would like it to be, example: Dividends.
  • Default Tax Code: Out of Scope
  • Save

 

I’ll be providing a reference here if you wish to know more about how to create an account: Add an account to your chart of accounts in QuickBooks Online.

Once done, you can now use the Bank and the account you just created to write the check.

Here’s how:

  1. Click +New and then select Check. Choose the Payee from the drop-down ▼.
  2. From the Bank account drop-down ▼, select the account the check withdraws money from.
  3. Complete the check fields, then select Save and close.

 

Here’s an article if you want to know more about how to write a check. If you make a mistake, here’s how to void a check.

You can also seek advice from your preferred accountant as there are different ways to record dividends

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success

bcbjork
Level 1

Dividend payment

Is there any way to do this from the bank transactions screen reconciling a dividend bank payment transaction?

bcbjork
Level 1

Dividend payment

Is there any way of doing this from the bank transactions screen in the reconciliation?

AldritchM
QuickBooks Team

Dividend payment

Hi there, @bcbjork.

 

There's a way to do dividend transactions in the reconciliation. Allow me to show you how:

 

  1. Click Bank transactions at the left navigation panel.
  2. Click Chart of accounts.
  3. You may utilize the filter options to find the bank or account that you'd like to work with, then click View register.
  4. Click Add check dropdown menu and select check


  5. Fill out the needed information and hit Save to finish.

 

Additionally, I'd like to leave this article to know how to review your beginning balance and look for issues for accounts you haven't reconciled before: Fix issues the first time you reconcile an account in QuickBooks Online.

 


I'd be glad to help if you need further assistance with running your reconciliation. Have a great day.

bcbjork
Level 1

Dividend payment

Hi, I dont see View register

ShaniamarieC
QuickBooks Team

Dividend payment

Hello there, @bcbjork. I'm here to help you rule this out so you to be able to see the view register tab in QuickBooks Online.

 

The View Register Tab is the term used for US accounts, in your case, it is called Account History. In your Transactions Tab, Go to View Resgiter and Click Account History. 

 

After your bank transactions have been processed, check out this article to learn how to create an account: Add an account to your chart of accounts in QuickBooks Online.

 

If there's anything else you need to accomplish in reconciling a dividend bank payment transaction, please let me know by leaving a comment below. Keep Safe!

bcbjork
Level 1

Dividend payment

I also dont have View Register.  

 

Once the dividend is created to transfer the funds from Dividends Paid equity account to the Director Loan Account.  How do I enter the funds flowing from the company (director loan account) to the director, via the bank account and ensure the bank is reconciled for that transaction?

Clark_B
QuickBooks Team

Dividend payment

Hi there, @bcbjork.

 

Let me chime in and provide clarification about the View Register and guide you through entering the funds from the director loan account to the director in QuickBooks Online (QBO).

 

To begin with, the term Account History is used in your region instead of View Register as it's from the US region.

 

To find the Account History, here's how:

 

  1. Go left navigation panel, and select Transactions.
  2. Select Chart of Accounts.

 

Beside the drop-down button in the COA section, you can now see the Account History.

 

In regards to your other concern, I suggest writing a cheque to ensure your accounts are up-to-date, and all your business transactions are accounted for.

 

Here's how to record and print a cheque:

 

  1. Select +New, and select Cheque.
  2. Choose the Payee from the dropdown.
  3. From the Bank account dropdown button, select the account the cheque withdraws money from.
  4. Complete the cheque fields you need.
  5. Select the Print option.
  6. Select Save and close to close the cheque window. Note: If you choose a save option, this adds the cheque to your bank register.

 

To know more about writing and recording a cheque, refer to this article: Create and record cheques.

 

For future reference, you can check this article to guide you in matching your bank and credit card statements: Reconcile an account in QuickBooks Online.

 

Please feel free to drop a comment below, if you have further concerns about the creating a cheque or other QBO-related concerns. I will answer them in any possible way.

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