Do we carry forward the dividends paid to employees into the balance sheet of the next financial year?

Hi Shuru,

If you want to carry forward the dividends paid to the next financial year, you can use a journal entry in QBO. To know the balancing accounts to use in the journal. Let's check with your accountant about this. This way, you can receive the best legal advice for your business as we ensure your books are accurate.

Check this link to learn more about how to: Create journal entries in QuickBooks Online.

If you have follow-up questions about the process above, let me know by commenting below. I'm always around to help. Have a nice day.