Record dividends

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

Setting Up

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

To do this:

  1. Go to Settings > Chart of Accounts.

  2. 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.

  1. Click Add New Code.

Recording a Dividends Payment

To record a dividends payment:

  1. 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, for example, 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.

  1. Click Add Transaction.

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