Finances are essential when it has to do with running a business, especially a small one. Since there is a thin line between your business and your personal life, it might be a chore trying to separate your finances from your business finances.
Studies have shown that some of the most successful business owners learned at an early stage how to separate their finances from their business finances. It helped them take their business seriously, and it provided them with some form of clarity. We love small businesses at Delivernow, which is why in this article, we have come up with tips on how to pay yourself as a small business owner.
Figure out how much you want to pay yourself
If you are applying for a job, you’d realize that the question regarding how much you want to be paid will come up. The employer might have a certain amount of money that doesn’t work with your budget, but with the power of negotiation, you can make it work. The first step regarding paying yourself as a small business owner is deciding how much you want to pay yourself. Choose how much you want to pay yourself and start doing that immediately.
Decide how often you want to pay yourself
Do you want to pay yourself weekly, biweekly or monthly? It all depends on what works for you. Choose a frequency that works for you and get started with paying yourself the amount of money you have set aside as soon as possible.
Figure out how you want to pay yourself
How do you want to pay yourself? Would you instead do a bank transfer, or would you prefer a direct deposit to your account? You know what works for you and what will give you a chance to still be productive while at that. You’d need to decide how you want to pay yourself and set that up.
Your salary account should be different from your business account
If you don’t have a separate account for your business, we are judging you. You need to head to the bank, and you need to head to the bank right now. This is not the time to be lazy about your business. Create a business account and pay yourself in your salary account, which should not be the business account.
Dig into your finances
Most business owners do not like dealing with finances; they would rather pay a CPA or a Financial Advisor to help them with their finances. While we are all for outsourcing, we also want you to look into your finances. See how it’s doing, see what you are spending money on, ask yourself if it’s relevant or irrelevant. If it’s clear that it’s irrelevant, you might want to cut that off. You won’t comfortably dive into your business’s nitty-gritty if you don’t dig into your finances.
We want you to spend wisely, and you need all the money you can get while starting so, we encourage you to look into your finances and make sure it looks good. With this article, we believe you are on the right track towards understanding how to pay yourself as a small business owner. Don’t just enjoy the article, subscribe to our newsletter for more content like this and follow us on social media @Delivernownow on Instagram and Twitter.