Don’t Price Your Handmade Products Without Watching This (As an E-commerce Seller)

[@karlamurphy9934]

Hey Janet! What's the difference between owner's comp and profit? (I'm asking for the profit first method) I want to transfer my owner's comp to my personal checking account as my paycheck. Is profit what stays in my op expenses to use for future business investments?

[@paperandspark]

If you're a sole proprietor then there really is no difference between owner's comp and profit. Both of them end up being transferred to you as an owner's draw if you are a sole prop following Profit First. I had two separate accounts and would treat the PROFIT account as a quarterly bonus, more like "fun" money. But you could even just combine those two accounts if you wanted to.

[@karlamurphy9934]

@@paperandspark thanks!!! 🤗🙏