When you explain (or manually enter) the transaction, select ‘Money Paid to User’ as the ‘Type’. Please note that this type is only available for business bank accounts and will not be visible for personal accounts.
Payments to more than one shareholder
If your company has more than one shareholder, you're likely to be paying dividends to more than one person at one time. Your bank may group these together as one transaction on your bank statement. In FreeAgent you can only record dividends paid to one user at a time, so in this situation you will need to split the transaction by changing the amount so that it reflects the dividend paid to one shareholder.
Choose the user to whom this dividend was paid. Please note that any shareholders who are receiving dividends need to be set up as shareholders, employees or directors in the Users area.
Under ‘Reason’, choose ‘Dividend’.
Create the new transaction.
View the recorded dividend payment
Select ‘My Money’ at the top of the screen and choose ‘Dividends’ from the drop-down menu. You will see that FreeAgent has posted this dividend here.
Remember that if you altered the amount of the payment because the company was paying more than one user's dividend at once, you'll now have an extra transaction to explain. You will need to repeat the above process to explain the dividends paid to any other shareholders.
FreeAgent is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 (register no. 799763) for the provision of account information services.
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