Dividends are payments to the companies shareholders out of the companies profits.

Setting Up

To record dividends in your KashFlow account you need to first create a transaction type (nominal code) that is set as a Capital & Reserves code

To do that, go to Settings > Chart of Accounts.

At the bottom of the screen, create the new transaction type

  • Code – the nominal code you want to use
  • Name – Dividends
  • Type –  Capital & Reserves
  • Area – Bank Transaction Type

When ready, click the Add New Code button

Recording a Dividends Payment

To record a dividends payment go to Bank > View/Add Transactions> Add New Transaction.

  • Date – this needs to be the date the money left the company bank account to pay the dividends
  • Comment – use this record a note about the transaction, i.e. “Quarter 2 Shareholder Dividends”
  • Code – select your new Dividends code
  • In/Out – as it’s money that’s left your account this should be entered as a money out transaction
  • VAT Rate – this should be N/A
  • VAT Amount – this should be 0.00
When ready, click the Add Transaction button.

The transaction will now show in the correct place on your Balance Sheet Report.

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