New Dividend Calculator

Problem reported by Phill Clark 8 years ago

I'm sure it's me being an idiot however I can't see a way of being able to generate a dividend payment to a shareholder who isn't a Director? The shareholder is in the system but unless I make them a Director (which they're not in actual terms of the business) then I can't generate a dividend that includes them.

Could you advise how to resolve this? Do I just need to make them a Director in the CB system and accept this is just for the sake of making the tool work?

6 Replies

Hi Phill,

Are there any Directors on the account at the moment? The shareholder doesn't necessarily have to be a director, but a director of the company does need to be added.

I've done some more reading and did a tentative test and discovered that. All sorted now, thanks John.

Ah cool nice one Phill - if you have any other queries or problems just let me know.

Actually another quick one. Previously any dividends would get added into the purchases list ready for payment automatically. Is this not the case anymore?

Hi Phill, I'll jump in here, no the dividend tool now defaults to creating a code for each shareholder under "Dividend creditors" called "shareholder name dividends". Then when you pay it you pick this code.

This is the same methodology that you can toggle on for Expenses (Ad hoc) and the VAT liability.

The main point behind forcing this method with dividends is that debts owed to shareholders are not "Trade Creditors" for year end accounts.

When the shareholder is a director, what a lot of people do is to "pay it off" using the Director's loan account, thus moving the debt into that account.

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