Paying yourself

Discussion in 'Lawn Mowing' started by Lawn-Scapes, Jul 24, 2001.

  1. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Posts: 2,810

    I just write checks for cash when I need it... Is there any reason I shouldn't do it this way.

    Should I be making out a check in my name, for the same amount once a week?

    Let me know...
     
  2. smburgess

    smburgess LawnSite Senior Member
    Posts: 469

    How is your business setup????????????
    (c-corp,s-corp, sole prop.)????????????
     
  3. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Posts: 2,810

    Sole prop...
     
  4. smburgess

    smburgess LawnSite Senior Member
    Posts: 469

    Write yourself all the checks you want, and if your not paying quarterly payroll taxes, you'll pay them all at the end of the year, so make sure you don't spend ALL the money! LOL
     
  5. John Allin

    John Allin LawnSite Bronze Member
    Posts: 1,489

    There is a certain discipline that comes with writing yourself a check each week, and living within that amount. It will also help you to amass some 'retained earnings' in the business and on your financial statement - which is a very good way to build wealth in any business.

    This is a very difficult thing to do, but I found that once we began this type of formalized payment program our net worth and retained earnings ratio went up dramatically and quickly.
     
  6. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Posts: 2,810

    Does anyone use Quickbooks?

    I've been writing the checks for cash and using the catagory 'Owners Capital'. Is this right? Do you make a subcatagory like 'paycheck' or something?

    Thanks for the previous replies... I've been trying to stick to a (set amount) weekly check... key word trying ;)
     
  7. Do yourself a favor and get an accountant. If you aren't sure where to post your owner's "draw", you may be making other mistakes. Not criticism at all just advice.

    Like john, as soon as I incorporated and formally started drawing a check my balance sheet started looking WAY better. Plus it helped by not being PERSONALLY liable for what my employees do anymore, feels safer for my family.
     

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