Where do i report my drawings to ensure i get paid by my customers

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As a business owner, where do I report my drawings to make sure that I get paid by my customers?

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Where do i report my drawings to ensure i get paid by my customers

  1. 1. Where Do I Report My Drawings To Ensure I Get Paid By My Customers? February 27, 2009 As a business owner, where do I report my drawings to make sure that I get paid by my customers? Many business owners think that their share of the business is drawings they can take out as and when they need them. Unfortunately this does not take into account that this represents two things; 1. Wages for working in the business. 2. Dividends for being the business owner. Many small business owners don’t count their time in the business as wages and therefore run the risk of the following issues. a. Their costs are not considered when calculating their sales prices. This means their wage is not recovered in prices. Another way of saying this is; customers are not paying them as an employee of the business even though they work the same as everyone else. b. Because they effectively have a zero wages cost it is impossible to get any one else to work for them at that cost and therefore they are never able to get a break from the business nor take a well earned holiday. No matter how you choose to take money out of the business, make sure that you count your wages cost when calculating sales prices. If you do not do this you may actually be developing an unsustainable business model and putting a noose around your own neck. If you are looking for a breakdown between wages and dividends then use the following rule of thumb.
  2. 2. 1. Calculate what it would cost you to hire some one to do what you’re doing. This is the amount of your wage. 2. Any amount over this is dividends from the profits you have created. ********************************************************************* Are you a business owner? Are you finding that you're working harder than ever, but at the end of the month you wonder where all the money has gone? Are you worried that another year of your life will pass you by, and you'll have made no real progress? How would you like to spend 60 seconds and get a business "health check" that will pinpoint the EXACT problem that your business is facing and give you specific, targeted advice about how to turn your business around and unlock the true wealth and potential locked up in the business you already own? It's easy, it's simple, it only takes one minute, and the best part of all, it's 100% free: Take you FREE business check up at: http://www.oneminutebusinesscheckup.com

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