Financial literacy should be taught as part of growing up, as much as learning to drive a car is. It’s the knowledge that ensures a family is thriving within its financial means, or that keeps an individual financially savvy and secure. When it comes to managing a business, especially a micro-business, financial literacy is as essential as the product/service knowledge within your area of expertise.

30 May 2021 marks Accounting Heart’s fifth birthday Woo hoo! Have we achieved everything we wanted to achieve? No. Have we achieved things that we never thought were possible? Yes! Are we proud of what we have achieved? ABSOLUTELY.

Owning a company comes with its own set of rules to get money out, once it starts making a profit. It is essential to have a plan on how to pay yourself to avoid the Problem with leaving profits in your company. Not having a plan can also lead to surprise tax bills (and not in a good way). Here are five ways to pay yourself from your company.

After navigating your way through our FAQ: What is personal services income and do I earn any? blog the next step is to determine if your business is a personal services business (or a PSB). The good news is the restrictions around a PSB are not as tight as personal services income (PSI). But first, what is a PSB?

Leaving your job to start your own business can be scary when you no longer have the security of a regular income to support household expenses. Making sales, turning a profit and getting cash in the door fast are now your top priorities. It may come as a shock to those just starting out in business that you don’t start earning the same income from day one that you did when employed. It does take time to build a business. There’s a reason only 20% of businesses make it to 5 years – the owner doesn’t have enough cash left over for them to live off! You need to go from start-up to revved up fast, if being in business long term is your goal. I started my own business a few years ago and have learnt a few things along the way.

Being in business reveals a lot about us – all our flaws, weaknesses and strengths. Through the process of building a business, there are often many peaks and valleys that can make or break us. Sometimes, we are confronted with a decision about whether to stick at it or move on. Staying or going in business is one of the most important decisions in business you’ll ever make.