Dividend payment

Hello, @ AlanJM.

It’s our pleasure to have you here in the QuickBooks Community. Let me help you in setting up your dividend payment.

A dividend is the distribution of reward from a portion of the company’s earnings and is paid to a class of its shareholders.

Here’s what we can do to setup your dividends payment:

1. Go to Accounting.
2. Select Chart of Accounts and click New button.

These are the things we need to do in creating a new account.

• Account type could be Expense, Liability or Equity.
• Detail Type can be either Partner Distributions or Owner’s Draw.
• Name can be changed to what you would like it to be, example: Dividends.
• Default Tax Code: Out of Scope
• Save

I’ll be providing a reference here if you wish to know more about how to create an account: Add an account to your chart of accounts in QuickBooks Online.

Once done, you can now use the Bank and the account you just created to write the check.

Here’s how:

1. Click +New and then select Check. Choose the Payee from the drop-down ▼.
2. From the Bank account drop-down ▼, select the account the check withdraws money from.
3. Complete the check fields, then select Save and close.

Here’s an article if you want to know more about how to write a check. If you make a mistake, here’s how to void a check.

You can also seek advice from your preferred accountant as there are different ways to record dividends

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success