ChangeGPS Dividend Statement uses the Franking Account Balance you enter in Step 1 to monitor whether the declared dividend would exceed the available franking credits. If the total franking credits attached to the declared dividend would exceed the franking account balance, the app flags this as an issue. Over-franking a dividend — declaring more franking credits than are available in the franking account — creates a liability for the company and is a common compliance error. To avoid it, enter the current franking account balance accurately in Step 1 before entering the share class details in Step 2.