P&L to show Dividends - Please 'like' this post!

Idea suggested by Ruth Gee 6 years ago

Please 'like' this post so the CB IT developers may consider adding it in as an option :-)

Our company would like there to be a function to show the Net Profit before and after Dividends (in much the same way as the Corporation Tax estimate is an option). It would help my boss see, at a glance, how we are doing and what is potentially the dividend that can be paid out on a month-to-month basis. If anybody else feels this would be a useful tool for their financial planning could they please 'like' this idea? With enough 'likes' apparently it could be something the CB IT developers would be willing to investigate. Many thanks Ruth

6 Replies

Hi Ruth,

Thanks for posting the idea here and yes, the more likes this receives the more our developer's will look into it. Also I believe I have sent you another message on your ticket so you can also read that.


Would be nice to see this in the p&l report, I can get this info in the dividend calculator already so hopefully can be copied across easily!

Hmmm...as much as I like this idea I think you should urge on the side of caution when using any software to tell you what level of dividends are available to declare.

As great as Clear Books is (I mean, I REALLY love it!!), at the moment the CT calc doesn't take Capital Allowances into account. With that being the case and then potentially throwing deferred taxation into the mix, the indicative divi figure provided stands a good chance of being off.

I do think it's good that users can see some kind of figure, it just worries me slightly that by populating it into a report that management come to rely on there could be serious repercussions.

Fair point well made! I would hope we would use it as an indicator rather than a guide. We are a service company so CAs don't feature too heavily in our accounts but good point and will bear it in mind.

Another point to consider is that dividends can only be paid from "balance sheet profits" rather than current year P&L figure. So if there are losses carried forward from previous years, these might cancel out any current year profit and therefore prevent dividends being paid. So any calculator would need to be linked to BS rather than P&L.

Agreed, Depreciation, CAs, DLAs, topping up Directors salaries, etc all need to be factored in. I think it would probably work best as a budgeting tool via journals with real time updating every quarter after payroll recs. Thanks for the Likes :-)

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