How to record dividends paid?
Escaso
Member Posts: 1
Small family-owned corp, monthly dividends paid. Each person's personal account is set up as an account in the main banking account (all accounts were set up as "different accounts" within one actual bank account/feed -- they opened 20 saving/checking accounts under one bank username/password). Setting aside all of the business accounts, each family member/owner has a debit card linked to their personal account. How do I characterize the transfers from the main business account into those personal accounts as dividend payments?
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Hi @Escaso To transfer funds from the main business account over to each person's designated bank account, you'll need to categorize the bank transactions as "Transfers to Bank, Credit Card or Loan > Select the personal account". Please refer to this article on more information (including screenshots) on how to do this:
How to create a transfer between two accounts (e.g. categorize a credit card payment)