just wondering if anyone can give some advice please .
i have myself a bit confused with how to do the dividend that would clear the directors loan account at the year end.
the director has taken a small salary each month during the year as well as taking money out which I have posted to her directors loan account. Now at the end of the year I need to post the dividend to clear the directors loan account but can't seem to get my head round it.
Hi Stephen
Just as you have mentioned the wages , just thought I should check that these have been reported via RTI to HMRC? I will assume they have.
Have you rolled the year end in sage?
Re the dividends, you don't need to do anything until the Accountant has done the year end and then they will provide you with a few adjustments, which will include the dividend adjustment through the DLA. You will just need to ascertain in the adjustments are done last working day (my preference) or first working day of new financial year.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Hi Stephen
If you have sent all the necessary reports to the Accountant (and saved them all) I would be tempted to ask them if you are ok to run the year end. Unless you close down each month and do managements in which case you will just need to do it. Dont forget to do double/treble back ups before you do.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Hi Joanne ,
Thanks. I have printed off all reports and backed them up . I can run the year end and was going to have a go at doing the dividend too but thought I would check to see if the way I would have done it would be the same as others.
Hi Stephen
Only probs with doing just the dividend - is that the ACTUAL figure, or is it likely the Accountants will be changing it? Or perhaps pushing some into another tax year (financial year different). Other thing is that if you havent done this before they have been sent their reports (which is normal as you generally dont know until their have done their tax comps) then they will not know you have done it and this will then screw up their adjustments that they send through as their start balance in their calculations will be different from yours. This will flag up next year also when they get the next years batch of reports.
The adjustments will be dependent on whether the year end has already been run or not and their preference for last or first working day adjustments, so its not so straight forward a question as it seems Im afraid.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position