Guide
How much should you pay yourself from your business?
Many owners pay themselves whatever is left at the end of the month, which means an income that moves with the bank balance. A steady, planned amount is better for you and for the business.
Start from what the business reliably earns
Take the average monthly profit over the last six to twelve months, before your own pay. A single good month is not a salary; an average is.
Keep a share in the business
Leave part of the profit in the business for a cash cushion and for growth. Many owners start by taking around half of reliable average profit as pay, and adjust once they see the cash hold up.
Example: average monthly profit before your pay of 12,000. Taking 6,000 a month leaves 6,000 to build cash and reinvest.
Check it against cash, not just profit
Profit can look healthy while cash is tied up in unpaid invoices. Make sure the business keeps a few months of costs in cash after paying you. Take tax advice on the most efficient way to pay yourself where you live; it varies by country and business structure.
Review it with real figures
Big4CFO shows your average monthly profit, your cash cover and a 13-week forecast every month: the three figures a steady salary depends on.
Have it worked out on your own figures
Big4CFO checks your books to the cent and produces this every month, from your own records. One-time reports cost $49 (one month), $99 (three months) or $199 (twelve months). Monthly plans start at $349 a month (Foundational), with Growth at $599, Leverage at $899 and Capital Stack at $1,999.
Questions
- Salary or dividends?
- That depends on your country, structure and personal tax. Ask your accountant: it is a tax question, not a reporting one.
See it on your own figures
One-time reports from $49, delivered within minutes. Monthly plans from $349. Every payment carries a 14-day money-back guarantee.