Hi
We recently purchased Solar following an intensive evaluation and I am so glad we did so... it has helped us manage our accounts simply and focus on our core business - thank you!
Anyway, we are at the point where we want to make a dividend payment;
I've read the help on how to record dividend payments, but I have a further question... how should I record a dividend payment to multiple shareholders (our company has 3)? Or is it not necessary to account for dividend payments that way?
I am thinking that our bank account will show three payments,one to each of the shareholders, plus we need to record a corporation tax liability for future payment associated with the dividend payment, and simply entering a single general transaction from our cheque account to our retained earnings accounts in Solar does not quite cover this.
Any help would be much appreciated!
Hi Mike,
We're glad to hear you like our software!
Yes, it's fine to record three dividend payments instead of one group payment.
To record the corporation tax for that year, create a General Transaction from the Corporation Tax Liability account to the Tax Expense account on the last day of the financial year. When you pay the tax, record another General Transaction from the Cheque Account to the tax liability account.
Cheers,
