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Dividend scenario 6

Difference between expenses recorded and paid for:

Dividends are calculated from your "Net Profit".

The "Net Profit" is reduced by expenses recorded, not expenses actually paid for.

For instance, you might record the purchase of a filing cabinet for the office at £500, however, you don’t pay for a further month.

Your Dividend will be lower than your bank balance by £500 until the money for the filing cabinet comes out of your bank account.

n a similar way, if you pay for an expense using a company credit card there will sometimes be a significant delay between the expense being incurred and being paid.

This is part of a troubleshooting series on 'Why does the maximum dividend available not match my bank balance?'

Last Updated: 13 Nov 2019 11:57AM GMT

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