Dividends Paid and Franking Account

Modified on: Wed, 18 Feb, 2026 at 3:21 PM

LodgeiT's Share Register and Franking Account tools automate dividend tracking and imputation credits for company tax returns. Franking ensures dividends carry tax credits, avoiding double taxation; balances must stay non-negative per ATO rules.

Key Concepts:

The video provides the following guide to using the Share Register & Franking Account -

Access Tools: Client file > Share Register > Create share classes/members if needed.
Franking Account: Add opening balance, then import ATO tax transactions (Income Tax Account/Instalments).
Record Dividends: Select members, enter amount/date, set franking %—auto-debits franking account.
Validate: Run form checks; flows to Company Tax Return (Labels 7A–7C, 10A–10C)

In the Financial Information Section, franking account must be positive or zero. Not negative.

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