I have just prepared a set of accounts for a client who paid himself a mid year dividend. A set of interim accounts were done showing that there was sufficient profit for this and a directors resolution was done and documented, etc. By the time we have come to year end, more money was spent on stock which was not budgeted for and now there is insufficient cash balance to pay the corp tax that has been calculated. Money has come in post year end to give sufficient cash flow so as such, there is not a cashflow problem. however I am alittle unsure of how to process this. I can do the PL as usual which calculates the tax liability and this will sit on the BS till the cashflow is able to clear ( which was 2 weeks later) but something tells me this is the wrong approach.