How to Book Dividend Checks in QuickBooks

Some businesses receive dividends as a source of income. In most cases, dividends are earned from investment accounts held by the business. A company using QuickBooks can record the deposit of the dividend check directly by using the "Make Deposits" options under the "Banking" menu. Since the business will not have invoiced for the dividend, there is no need to create an invoice and record receipt of the payment in separate steps.

Choose "Make Deposits" under the "Banking" menu across the top of the screen.

Enter the detail regarding the deposit. Enter the date the deposit was made and the name of the company paying the dividend. Choose "Dividend Income" as the "from account" and complete the memo column as desired. Include the check number and payment method in the appropriate columns and enter the amount of the check.

Repeat Step 2 for additional dividend checks received and currently being deposited.

Click on "Save and Close" to finish.

Tip

"Dividend Income" should be a regular income account if the business's main activity is related to financial investments. If the company has a primary activity other than investments, "Dividend Income" should be made an "Other Income" account.

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About the Author

Paula McCullough began freelance writing in 2011. With experience in accounting and business, she writes for various online publications. McCullough holds a Bachelor of Science in Business Administration with a major in accounting from Chapman University.

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