Answer to Question #312699 in Management for Ahahs

Question

Owners who take a distribution or draws of profits can take any amount they want from their business. Of course, they shouldn't take money that will be needed to employees or pay other bills of the business. One Important point about taking money from His business: You don't take money from "profits" because they aren't in the bank. You take money from the business bank account. Add your personal needs to your business budget and make sure you have enough each month to meet your business obligations first.

Answer 1

Owners who take a dividend or draw earnings from their firm are free to withdraw whatever amount they desire from their company. Of course, they should refrain from taking money that will be required to pay staff or to cover other company expenses. You should be aware of one important thing when it comes to collecting money from His business: You do not take money from "earnings" since those funds are not currently held in a bank account. In order to get funds, you must withdraw funds from the company bank account. Be careful to include your personal requirements in your company budget and to ensure that you have enough money each month to satisfy your business commitments first.