I have a client who has a limited company and is paid a monthly salary they also take a dividend each month - how do I record the dividend (I am using Xero)
Not familiar with Xero but what I do in other software, is post it to the Directors Loan Account (or for clarity create one, eg Director Proposed Dividends)
That way if the dividend never materialises, for any reason, it becomes a loan. As dividends cant be called unless there is sufficient profit at the year end to issue
