Consultants: Are You Paying Yourself Right?
As a consultant, you’re skilled at helping others grow their business—but are you treating your own finances with the same care?
Why This Matters:
Many consultants fall into the trap of inconsistent pay, unclear owner draws, or simply not paying themselves at all. This not only affects your personal stability but also blurs the financial picture of your business.
3 Things to Check Right Now:
1. Are You Mixing Business and Personal Funds?
Keep a dedicated business bank account. This keeps your bookkeeping clean and helps you understand exactly what your business earns vs. what you pay yourself.
2. Do You Have a Pay Strategy?
Whether you're paying yourself through owner’s draws, payroll, or a set monthly transfer, consistency is key. You deserve a reliable paycheck—even if your business revenue fluctuates.
3. Is Your Pricing Supporting Your Pay?
If you’re undercharging, it’s nearly impossible to pay yourself well. Use your financial reports to assess profit margins and adjust pricing as needed.
FAQ
Q: Should I pay myself as an employee or owner?
It depends on your business structure. Sole proprietors typically use owner’s draws, while S-Corps often require payroll.
Q: How much should I pay myself?
Start by calculating your personal needs, then work backward based on your business's cash flow and profits.
Q: Can I pay myself with fluctuating income?
Yes—consider a monthly baseline with bonuses during high-income months.
Q: Will this impact my taxes?
Yes! The method and amount you pay yourself can affect how much you owe in self-employment or payroll taxes.
Take control of your compensation—and your confidence as a business owner.
Book a free strategy call with Dr. Bryan Raya, QuickBooks ProAdvisor:
👉 https://calendly.com/dbr_bookkeeping/book-a-free-call-with-dbr
Let’s keep Doing Business Right!
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