Understanding Owner Equity: Best Practices for Small Business Owners
In this episode of the Become Sensible podcast, we explore owner equity—a key concept that many business owners overlook but is critical to financial health. If you’re a business owner, understanding your equity is essential for making informed financial decisions.
Why You Need to Listen
Are you:
- Confused about how owner equity works on your balance sheet?
- Unsure how to manage owner distributions or retained earnings?
This episode provides insights and practical steps to manage your equity effectively.
What We’ll Cover
In this episode, you’ll learn:
- A breakdown of owner equity and its components (owner’s investments, distributions, and retained earnings).
- Best practices for recording and managing equity, from separating distributions to closing out equity accounts annually.
Here’s What You’ll Discover:
- How a strong equity position helps with investor attraction, business growth tracking, and tax planning.
- Practical steps to close out equity accounts and keep financial statements clear.
Plus, we’ll share a real-life example of how to handle equity closure with journal entries, ensuring your books stay organized.
Take Control of Your Owner Equity
Properly managing your owner equity is vital for maintaining financial stability. This episode guides you through essential practices to manage equity and improve your business’s financial health.
Don’t Miss Out!
Tune in now to learn how to master your owner equity and make smarter financial decisions for your business!
Happy listening, and here’s to your business success!
How to Financially Prepare for Rapid Business Growth
How to Financially Prepare for Rapid Business Growth Scaling from $100K to $1M in revenue is a defining moment for any business growth. However, without the right financial systems in place, growth can lead to cash flow problems, operational breakdowns, and financial instability. In this episode of the Become Sensible podcast, we cover the essential…
Continue Reading How to Financially Prepare for Rapid Business Growth
How to Pay Yourself Properly as an S-Corporation Owner and Save Thousands in Taxes
How to Pay Yourself Properly as an S-Corporation Owner and Save Thousands in Taxes In this episode of the Become Sensible podcast, we’re revealing one of the most overlooked tax-saving strategies for small business owners: how to pay yourself properly as an S-Corporation owner. If you’re earning $50K or more annually and running an LLC…
Continue Reading How to Pay Yourself Properly as an S-Corporation Owner and Save Thousands in Taxes
Stop Overpaying Taxes: Common Mistakes and How to Fix Them
Stop Overpaying Taxes: Common Mistakes and How to Fix Them In this episode of the Become Sensible podcast, we uncover a financial mistake most people don’t even realize they’re making overpaying taxes. If you’re not optimizing deductions or structuring your finances strategically, you could be giving away more money than necessary. Why You Need to…
Continue Reading Stop Overpaying Taxes: Common Mistakes and How to Fix Them
Building Wealth While Running Your Business: A Clear Financial system for Entrepreneurs
Building Wealth While Running Your Business: A Clear Financial system for Entrepreneurs As a business owner, your focus is often on growing your company, but what about building wealth for the future? In this episode of the Become Sensible podcast, we’re diving into how to build real wealth both inside and outside your business. Whether…
Proudly powered by WordPress
