"Hey Kerry,
Assuming Xero does this the same way in the UK as here in Aus (and concepts of PAYE / PAYG + NIC / Super are essentially the same here as in the UK) these liabilities sit in trade creditors. Wrong? Sure is (at least in my…"
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PAYE and PAYRUN use of liabilty accounts 825 and 826
Started this discussion. Last reply by Rhys Roberts Mar 29. 1 Reply 0 Likes
Hi there when setting up a Payrun using Payrun function and approving itthe salaries are writen to 803 Wages Payable - liability accountand the 477 Salaries Expense account Employee NICs and PAYE is…Continue
How to record a Dividends payment in Xero
Started this discussion. Last reply by Catherine (Xero) Mar 17. 12 Replies 0 Likes
Hello I wish to pay a dividend to myself. There were always 2 stages to this in Sageone put the proposed dividend into the Dividend Liability account (normally retained Earnings)The second was…Continue
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Kerry posted a discussionPAYE and PAYRUN use of liabilty accounts 825 and 826
Hi there when setting up a Payrun using Payrun function and approving itthe salaries are writen to 803 Wages Payable - liability accountand the 477 Salaries Expense account Employee NICs and PAYE is written to account 477 Salaries Expense account When the salary or wages are paid during the batch pay run the Wages Payable account 803 is deducted by the amount and the payment comes from the bank account.Until the point of payment the salaries/wages are shown as a liability on the Balance…See More
Catherine (Xero) replied to Kerry's discussion How to record a Dividends payment in Xero"This is one of the reasons we introduced the set up wizard, which we didn't have for the first year or so, as a way to encourage people to investigate and get the right data in at conversion date and one of the steps even puts the 'invite…"
"Hi I absolutely agree about business owners using it themselves, but if the accounts aren't setup in the correct way at the start and the conversion balances brought in correctly there is a danger that items are treated…"
Catherine (Xero) replied to Kerry's discussion How to record a Dividends payment in Xero"Hi Mary - we certainly do encourage this where and when we can and at certain trigger points during the setup process. However it's a balancing act because we want to be an approachable accounting system, one business owners aren't afraid…"
"Hi Matthew
Just a word of warning re journal entries....Xero is SO user friendly that lots of users are processing transactions without fully understanding the impact of them. Please involve an accountant or bookkeeper for transactions which…"
Matthew Gertner replied to Kerry's discussion How to record a Dividends payment in Xero"Cassandra,
Thanks a lot for the clarification. I had no clue that Manual Journal section existed. Now, as they say, I know just enough to be dangerous. :-)
My goal is to have a balance sheet that makes sense, not necessarily that meets any…"
Cassandra Scott replied to Kerry's discussion How to record a Dividends payment in Xero"Matthew
The transaction were you debit one account, and credit another, is called a Manual Journal or General Journal.
From memory, you need to have financial adviser status to action this transaction in Xero.
Your retained earnings should not be…"
Matthew Gertner replied to Kerry's discussion How to record a Dividends payment in Xero"Hi Catherine,
Can you explain how to debit one account and credit another when neither of the accounts are bank accounts? For example, I guess I need to deduct the dividend amount from retained earnings and add it to the new dividend payable…"
Catherine (Xero) replied to Kerry's discussion How to record a Dividends payment in Xero"Hi Cassandra - you definitely know accounting better than I do! We encourage you guys with this knowledge to help each other out - I can suggest how to do certain things in Xero but don't always fully appreciate the scenario and what different…"
Cassandra Scott replied to Kerry's discussion How to record a Dividends payment in Xero"Hi Catherine
Happy to stand corrected here, but my understanding is that if a dividend is paid by a company to a shareholder, then it is not an expense transaction, but rather reflected against equity.
A dividend to stockholders or shareholders…"
Kerry replied to Kerry's discussion How to record a Dividends payment in Xero"Many thanks
I have worked it all out now
you may also need Dividends Paid as well as an account"
Catherine (Xero) replied to Kerry's discussion How to record a Dividends payment in Xero"We're just working on a little step-by-step guide for this to go into our Help Centre. You may have figured out how you want to do this by now but here are the accounts we suggest you create:
Dividend Declared (Expense)
Dividend Payable…"
Cassandra Scott replied to Kerry's discussion How to record a Dividends payment in Xero"What about CR Directors Loan (liability), DR Dividends Paid (equity)
When cash is available, CR Bank (asset), DR directors Loan."
Kerry posted a discussionHow to record a Dividends payment in Xero
Hello I wish to pay a dividend to myself. There were always 2 stages to this in Sageone put the proposed dividend into the Dividend Liability account (normally retained Earnings)The second was to Credit amount assigned to the 'Dividend Payable' account. Then when it was payable pay from the bank account to the "Dividend Payable" account Not sure how to do this in Xero. Retained earnings appears to be an earmarked account and looks like it is calculated automatically. I am not looking for…See More
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