Owner's Salary: Why Your Salary and Distributions are Fogging Your View of Net Income
- Don’t confuse business profits with owner's salary.
- You get paid a salary for what you do, and you get a return on what you own.
- Until you pay yourself a market-based wage and plug that number into your financials, your financial data is worthless.
- If you got run over by a bus today and your heirs decided they would keep the business going in your absence, what would they have to pay someone to do your job? Answering this question determines your market based-wage.
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This book teaches the fundamentals of owner compensation, profit targets, labour productivity, cash flow, and data reporting. Clear explanations and helpful illustrations throughout make it a must-read guide for small business owners looking to achieve higher profits.
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