Hi, I’m Amber!
S-Corps and Profit First – Common FAQs
I’m so grateful for our YouTube subscribers! I truly love when you reach out for clarification or additional information so that I can engage with you more!
Recently, viewer Ashley Woodard commented on one of my previous episodes and asked some important questions pertaining to using the Profit First system when your company is designated as an S-Corp.
Here are the questions I’ll be answering today for Ashley:
– At the end of each quarter, I “reset” my Owners Comp account to an amount equaling the total owner’s salary payments to be made in the upcoming quarter (the rest gets reallocated to the Profit account!). This was straightforward before I elected S-Corp taxation, as it was just equal to the total amount I wanted to pay myself during that quarter. Now that I am taxed as an S-Corp, should I just be leaving the “net” salary in there? Or the full amount (net + employee taxes + employer taxes)?
– Follow on to the above question is whether I should also include 401k contributions (employee)? What about 401k contributions (company match)?
– When I reallocate the funds in my Taxes account each quarter, should I be reimbursing the Owners Comp account? Or myself (and would it be considered a shareholder withdrawal?)?
– Follow on to the above question is whether some sort of split between employee owed portion and company owed portion should be considered?
Resources mentioned:
- How to use Profit First as an S-Corp:https://youtu.be/_4E0I9VnzGw
- Get my free Profitability Calculator: https://amberdugger.com/calculator/
Take Action:
Comment below and let us know what question YOU have about using Profit First and YNAB in your business!
✨TAKE ACTION and get on the list for our next LIVE masterclass: https://www.amberdugger.com/masterclass
Get Connected:
💕 FIND SUPPORT in our community: https://www.amberdugger.com/community
🍿SUBSCRIBE to our YouTube channel: https://www.youtube.com/amberduggerofficial
❤️ Keep in touch ❤️:
🧰 Tools we use 💪🏼:
Kajabi – Online Course Platform
BombBomb – Make/Send Personalized Videos
Have a topic you’d like to hear some tips about? Click here to let us know! We’d love to hear from you!
We’d love to hear your thoughts:
- Subscribe to the YouTube channel to get notifications when new episodes are available!
- Post your questions in our amazing Sweet Life, Purposeful Money community
- Discover the cash flow management software we recommend HERE.
5 key strategies to permanent profitability
Are you ready to take the first steps to untangle your personal and business finances and use your revenue goal to advance your business? Register for our LIVE Masterclass!
We have been told by past participants that this free experience has been worth more than the last three investments they have made in their business. In other words, you don’t want to miss it!
Get ready to lay the roadmap to a profitable and sustainable business while uncovering how to start healing your relationship with money. Remember, money is simply a resource to allow us to live a life of joy. We can’t wait to support you in our next live workshop. Big kudos to you for taking this big step towards financial self care.
0 Comments