For many, the prospect of earning a living seems like a dream come true.
However, small business owners know that the truth is more complex.
You should only pay for yourself with your profit – not your income.
If you see money coming into your business, do not think that you can automatically afford to pay yourself a salary. Before you take your cut, you also need to look at things like taxes, employees salaries, fixed costs, and overpayments.
A good calculator software will help you find out how much you can afford. It will allow you to track all costs, calculate profit, and predict approximately your future taxes.
Setting your income will depend on your location, industry, income, and many other factors.
If you are just starting a business, you may not get a profit in your first year. Of course, this does not mean that you should never have to pay yourself.
Proper planning regarding your company’s finances will avoid financial and emotional problems, stress, and bad business decisions.