I just kind of lump money in my business account and spread it into different accounts from there. That is not the way a business is supposed to be ran, I am just behind on that. Obviously everybody’s bills are different but I am curious for those of you that pay yourself like an employee how much are you paying yourself? Also are you paying yourself out of gross, or after net income. How do you do it? Do you go to the bank twice a month and put a flat rate into your personal account. How and what do you pay yourself? Appreciate the feedback?
I won’t talk about numbers but all money goes to my business checking account and from there I electronically transfer to my personal account as needed.
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Can you share percentages? Like what you put in a business savings for taxes? Does your advertising dollars, tools, printer ink, business insurance, software programs, carbon copy forms etc all come out of business checking?
Yes, all business expense come out of business checking as well as quarterly taxes. I take about 55% for my personal account. About 30 - 40% for all those expenses, which includes employee payroll, which is for me just one part timer.
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ok what is the 30 to 40 %. Where does the other 5 to 15% go
Every expense the business has. Insurances, vehicles, gas, office, payroll, office items, stamps, paper, laundry soap, tools, equipment, software, marketing, the post office box, uniforms…and on and on.
This is depressing lol business is so expensive
Stays in the bank…well. except this year…lol, spent bit too much…
And customers think we just profit 80 or 120 an hr lol
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I have never had a customer make a comment, implying they thought I made a lot of money, or that $100/hr is too much.
ha ha okay. Never heard the line “It only took you this long” Or “Is it still $300.00 you just got here”
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I have heard “wow, you’re fast” or “that didn’t take long”, but it is because they are pleased
to have me done and out the way so soon.
If you haven’t done so already, check out Profit First by Mike Michalowicz. His other book The Pumpkin Plan is a really good read too
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Both excellent reads. Profit First helped me budget my finances. My breakdown is 45% owners compensation, 30% operating expense, 15% for taxes, and 10% profit
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you can also set up as a S corp, pay yourself a portion of your salary the rest as distributions under a lower tax rate and reduce other taxes - talk to your tax guy
set your payroll up with a payroll service, if 2x a month, take what you spent personally last year, divide it upby 26, subtract your net payroll wages and then 2x a month deposit that averaged amount to personal account as well - personal side all taken care of now assuming youre established and what’s needed is already coming in
then handle and budget the business stuff separately
and of course tweak both budgets to yield more for savings and/or investment
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You should check out the Profit First book.
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Just pay yourself what you need to live on per month. Let’s just say your paying yourself 4000 a month , if you need 5000 the following month it don’t matter. Your accountant will see it !!!
What I need/want , an what you need/want is apples an oranges.
Yes I write … well my wife writes a check payable to me from the business account each month. I’m an Scorp!!!
I know it’s nit a great explanation on how to handle your finances , obviously if your only making 4000 a month you won’t pay yourself that. I don’t need percentages the trick for me was make that business account fat An juicy An keep it there.
I hate reading I like working an making money though. Maybe its why I’m not so informative here. Lol.
Can you share percentages? Like what you put in a business savings for taxes? Does your advertising dollars, tools, printer ink, business insurance, software programs, carbon copy forms etc all come out of business checking?
Yes … Paid for by your business credit card. Which should be paid for out of your business checking account. Hopefully the baalance 
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This 100%!
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Read Profit First, get setup like he outlines. Don’t forget to pay yourself a Quarterly Dividend - like a business would.
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