Are You Paying Yourself Wrong in Your Small Business?

[@BadassBusinessOwners]

Keep in mind, to do this, you have to be priced correctly! If you need help with pricing, check out this video next: kzbin.info/www/bejne/Y17GeIhpq6qLhZo. Tammy

[@mattw1427]

Thanks for the video. I have a auto repair shop. Single LLC and and single employee. My bookkeeper doesn't include my labor hours into my cost of goods, just the parts sold. Would you think this is correct? I'm looking for a better bookkeeper who can help explain theses things a little better. I feel like every time I ask a question I don't get a good answer. Thanks again!

[@BadassBusinessOwners]

Hey there. If you aren't an S or C corp I can see why they aren't there. Technically, they are owner draws that you are taking. But you can always create a category and call it something like Owner Draw Employee time and put it there. Keep in mind, it will NOT be an expense for taxes as it will at least show you labor costs for your COGS. The other option is to just manually add what you take when looking at your numbers but I totally understand why you want to see it there to make it easier to see that labor cost. Just let your tax person know that you are aware it isn't an actual COG for taxes, but you want to see it there so you know your true COGS. They will probably understand. Hope this helps. - Tammy

[@mattw1427]

@@BadassBusinessOwners Yes, you understand me! I'd like to see my effective labor rate for my own benefit. I know it doesn't expense but it helps me with my sanity and trying to understand where I can improve. Thanks for the reply!

[@rainthebudgie4313]

I just don’t make profit at all this year. I work very hard all day but end of the day I am tired and have no time to see if I make any money .

[@christophermann94]

Sounds like you're not pricing correctly.

[@DeepeshSachdev_Gaming]

​@@christophermann94 how to price properly?

[@BadassBusinessOwners]

Hey there. I agree with the below, your first place to look is at your pricing. You are probably priced too low. Here is a video to help with that: kzbin.info/www/bejne/Y17GeIhpq6qLhZo Hope it helps, Tammy