I recently set myself up as a Limited Company and I'm now trying to understand how to pay myself monthly dividends using Quickbooks Online. After spending some time on the forum here, I've adjusted Dividends in Chart of Accounts so that it will shown in the Retained Earnings account, but I don't understand how to actually process dividends. Could someone please help with this?
Do I just make the bank transfer manually and then run a report using Chart of Accounts? A step by step guide would be really helpful. Thank you!
Hi accountingnewb We wouldn't recommend using/renaming the retained earnings as a dividend account. We recommend that you create a separate equity account for dividends, create a journal to transfer the dividends amount from the retained earnings to the dividend account and then when you pay the dividends create expenses entering the dividend/equity account in the category column of the expense. We must make you ware that we aren't accountants and we advise you to qualify any information that we provide with a professional.
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