Using MyBookkeepingManager to View the Size of Dividend Payments

Most limited companies will pay dividends to shareholders at some stage. It is important, however, to know how much money is available in a business for such payments because dividends can only be paid from profit for the current year or retained earnings from previous years.

One of the main strengths of MyBookkeepingManager is its management of dividends. In this user guide we will look at how you can use the software to view the funds available for dividends.

You can find out more about dividends here.

View the Maximum Amount of Money Available for Dividends

To view how much money can be paid out in dividends:

The dividend columns are:

  1. From the menu bar at the top of the MyBookkeepingManager window, click View/Edit Months.
  2. Make sure that the check boxes shown in the following screen shot are selected.
  3. Make sure you have the correct year selected and then click the View/Edit Months button.
  4. If you have lots of columns displayed, you'll need to scroll to the right of the window so that you can see the dividend-related columns. In the screen shot shown below, I've turned off most of the columns so that I can see a complete spreadsheet for a range of months.
    • Actual Dividend Taken
    • Maximum Dividend Available
    • Difference (between dividend available and dividend taken)
  5. If you look at each row in the spreadsheet, you can see the figures for each month. For some months, you'll see that a bigger dividend was taken than perhaps should have been. In other words, the Actual Dividend Taken value is bigger than the Maximum Dividend Available value, resulting in a negative Difference value.

    In fact, this is fine so long as the Year Totals, and more important the Grand Totals, have positive Difference values. The Year Totals shows the amount of profit held in the company for the current financial year, and the Grand Totals shows the amount of retained profit (or retained earnings) held in the company from previous years. You need to ensure that when you take a dividend (done when you add or edit a month), the Grand Totals - Difference value does not become negative.

    If you take a dividend that is too big, it then becomes a directors' loan, which is handled differently to a dividend with regard to tax.

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