HarvestWiseWhen you’re running your own business, paying yourself can get a bit messy. Some owners pay themselves too little, some too much, and others mix personal and business money — which usually ends in confusion. Sorting out how you pay yourself helps with budgeting, tax planning, and keeping your business financially healthy.
1.Your Structure Determines How You Get Paid
How you pay yourself depends on your business setup:
- Sole trader: drawings (not wages).
- Company: wages, dividends, or a mix.
- Trust: wages or trust distributions.
- Partnership: drawings based on the partnership agreement.
2. Keep Business and Personal Money Separate
Separate accounts for cleaner bookkeeping, clearer reporting, and less stress at tax time.
3. Pay Yourself Consistently
A regular weekly or fortnightly amount helps stabilise both personal and business cash flow.
4. Don’t Forget Superannuation
Company owners must pay super on wages. Sole traders should still contribute where possible.
5. Paying Yourself Too Much Can Hurt Cash Flow
Only take what the business can sustainably afford.
6. Review Your Pay Regularly
Review yearly to reflect your workload, responsibilities, and business performance.
Final Thoughts
Paying yourself correctly keeps your business healthy and your finances organised. If you’re unsure, our team can guide you through the best approach for your structure.