Separating Your Personal And Business Finances - Ocean6
One of the things that we often see with incorporated professionals, entrepreneurs, and business owners, is the intermingling of their personal and corporate finances. The blurred line between their personal and business finances creates complexity, and as an entrepreneur, you cannot grow out of complexity.
To help simplify and organize your financial picture, we recommend that you ensure you’re taking the right amount of money out of your corporation, paying a dividend to you personally as needed, and leaving the rest of your money inside your corporation.
Getting organized and establishing clear boundaries between your personal and business finances is a critical first step towards having more control over your financial future. You cannot grow your business effectively when your finances are all over the place and you’re not clear about where your cash flow is going.
If you want to learn how to effectively structure your finances, separate yourself from your corporation, and pay yourself periodic dividends instead of taking money out whenever you need it, book a call, we’d be love to run you through our full financial planning process.