Entering Dividends and Distributions

In this article

Dividends (for corporations) or distributions (for LLCs or partnerships) are a way to pass profits along to the company's owners or shareholders. Companies can issue dividends at any time but typically do so at the end of the fiscal year. That timing makes sense, given that dividends are based on after-tax profits. 

Adding a Dividends

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In your financial forecasting tool, Navigate to the  Dividends tab Under the Working Capital tab:

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On Dividends tab, Click on Add Dividend button :

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In the overlay that appears, Enter a name or description for the dividend In the overlay that appears:

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Next, indicate whether this is a one-time distribution, or happens regularly and is the same amount, or varying amounts over time:

  • If you chose a One-time amount, indicate the amount of the dividend and select the month/year that it will be issued:
  • If you chose a Constant amount, indicate the amount of the dividend and whether you will issue it monthly or yearly: 
    Then, indicate when you will issue the first and subsequent dividends in the series:
  • If you chose Varying amounts over time, enter the amounts you want to distribute in the months you'd like to distribute them:

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Click  Save and Close.

Editing or Deleting Dividends

1

To delete a dividend, click on Delete Dividend button on dividend item:

2

To edit a dividend, click on the dividend item.

Where does this entry appear in the financial statements?

In general, Dividends will not appear in the Profit and Loss statement as a separate row. a dividend payment is subtracted from Earnings to calculate your Retained Earnings. Notice that this value carries forward from the month when it was paid. This doesn't mean the same dividend is being subtracted each month; it means that the deduction is being carried forward in calculating your monthly and annual earnings: 

In the Balance Sheet, It is a part of retained earning closing:

In the Cash Flow table, you'll see a reduction in net cash, as shown below. This reduction is calculated only into the month when the dividend was paid: 

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