Paying dividends

Documenting a dividend

Directors are required to hold a meeting and produce minutes documenting the decision to pay a dividend.

In order for a dividend to be classed as legal, dividend vouchers must also be produced and retained.

Both minutes and vouchers will be created by the software for you.

Creating a dividend

To create a dividend:

• Select 'Bookkeeping' in the menu

• Click 'Dividends'

• And press the 'Issue dividend' button

You'll then need to fill in the following details:

• Share class - choose the class of shares you'd like to issue The dividend will be split between holders of this share class, according to the number they hold

• Dividend date - enter the date the dividends will be issued

• Amount to pay - the total amount you'd like to pay. You can only issue upto the profit available in your company, if you exceed this, a warning will be displayed

• Pay off your director's loan account - you can choose to use this dividend to pay off your director's loan account balance, instead of receiving the money

• Meeting to agree dividend - confirm that a board meeting has taken place to agree the issuing of this dividend

Then save

Paying dividends

You can now make the payment to the shareholders.

You will find a pending payment in the Bookkeeping area for each shareholder’s payment. When the outgoing transaction is shown in your importer, you can match this in.