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salary or profit?

8302 Views 51 Replies 17 Participants Last post by  daren
Does it really matter what I call the money left over at the end of the day? Does it affect how I how I do business?

The way I see it, if I have paid my supplies, payroll, insurance, etc. and replenished the kitty then what is left over is mine no matter what name I give it. I'll pay taxes on every $ the same. It is good to tract job profits but separating my money into two piles when it all goes into the same pot to pay my bills just seems like wasted effort.

That's my point of view. What's yours?
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I do keep my business and personal finances separate. Each has a checking and savings account. I keep at least 1 month of business expenses and personal expenses in savings separate from each other to ride the ups and downs. That is why a said "replenish the kitty" in my first post.

I do like what Brian said about behaving differently because of how one perceives the money. This is the kind of thought I was looking for when I asked the question.

I wanted to know why some are so aggressive in defending the separation of salary and profit and having a job versus a business.

I do take some offense (but not much) when my small operation (me + 1 or 2) is viewed as a job. To me a job is a clock puncher. You clock in, make a few widgets, you clock out. That's a job. Yes I do the physical work but I also do everything else. Sales, paper work, marketing etc. Yes if I stop the business stops but it is still a business.

I am grateful to all people here for sharing so much information. Some of it I had already learned myself the hard way. Some was new and I understood it right away. Some I'm still trying to a get a grip on and this was one of them. I don't do anything in my business unless it will improve how I do it. So if I don't understand something that others see as very important to their business I am not going to adopt that practice until I understand why and how it is done. So I asked and shared how I see it. I don't mind being wrong. I am quite often. I just don't intend on staying wrong.
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And I do believe there is a big difference between owner's salary and profit.
So what is it?

Maybe I'm not seeing it because it doesn't really matter with the size of my business and my goals. I have no intention of getting bigger so as long as I feed the machine what it needs and repair or replace what breaks then the rest is just semantics.
now thats the backwoods way! you aint a cityboy are you?
I'm on the edge of the city. When the kids are grown I won't need so much money. Then I can move farther out.

I'm one of those tree hugging dirt worshippers.
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