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Our small business accountants in Sydney will explain what dividends are

When you run a larger company, paying dividends also comes as a new expense as you grow. Our small business accountants in Sydney will explain the purpose of dividends and how they work.

A dividend is a portion of a company’s earnings, which is decided by the board of directors to a class of its stakeholders. They are issued as a cash payment or as shares of stock.

What companies offer dividends? First of all you need to know that start-ups and high growth businesses such as those involved with technology or biotechnology sectors rarely offer dividends because almost all their profits are reinvested to help sustain a higher than normal growth.

When it comes to small business accounting and wanted to pay dividends for any shareholders, our main goal for you will be to help you grow large enough to start affording those type of payments.

Our small business accountants in Sydney are always just one call away to get your accounts in order.