The Importance of Paying Yourself a Wage in Your Business Budget
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Written by Lyndon Russel from Next Level Accountants

Many business owners make the mistake of not paying themselves a wage for the work they do in their business. This can lead to an over inflated net profit figure, as the owner is essentially working for free. In this blog post, we’ll discuss why it’s important to pay yourself a wage as a business owner, and how doing so can impact your business budget.

As a business owner, you wear many hats and are responsible for a lot of different tasks. From managing employees to handling finances, there’s a lot that goes into running a successful business. It’s important to remember that your time is valuable, and you should be compensated for the work you do in your business just like any other employee.

 

Paying yourself a wage has a number of benefits. First, it ensures that you’re bringing in enough money to live on each month. This can be especially helpful if your business is going through a slow period and revenue is down. Second, it allows you to budget more accurately for your business expenses. When you know how much you need to bring in each month to cover your personal costs, it’s easier to determine how much you can afford to spend on things like inventory or marketing.

 

Lastly, paying yourself a wage can help you avoid burnout. Running a business is stressful, and it’s easy to get overwhelmed when you’re trying to do everything yourself. By taking care of yourself financially, you can reduce some of that stress and take better care of your overall health and well-being.

Paying yourself a wage is an important part of being a business owner. Not only does it ensure that you’re bringing in enough money to cover your personal expenses, but it also allows you to budget more accurately and avoid burnout. If you’re not currently paying yourself a wage, consider adding it to your business budget and see how it impacts your bottom line.

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What you’ll get in the complimentary 60 min session

Diagnostic Tool

Use a powerful diagnostic business tool, to understand the current reality

Identify the Obstacles

Uncover the obstacles that may be holding you back from more profits, time and freedom

Action Plan

Craft a realistic action plan to produce results in the next 6-12 months

Recommendations

Gain recommendations specifically designed for trades and construction businesses operating in Australia & New Zealand

Let’s Hit the Ground Running with a Business Performance Session
Would you like to gain greater clarity and consistency in your trades business? Book a complimentary ‘Business Performance Session´ with a trades business specialist and uncover what may be holding your business back.