I take a salary from payroll, do I still need an Owner’s Comp account?
Hi! Kelley Brubaker here from Profit Scale Thrive where we guide attorneys to overflowing profits, scaled growth and thriving lives with a Profit First FAQ you can use.
Yes. You just transfer the money from Owner’s Comp to the payroll account when pay time comes.
The purpose is to always be able to instantly see what money the company is allocating to Owner’s Comp (and the other accounts) when you look at your bank balances. Seeing that the “most important employee” (the owner’s) compensation is a behavioral reward mechanism and further instills the Profit First principles.
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