Business
The sole proprietor budget: run the business like it employs you
Sole proprietors mix business and personal cash until it hurts — the classic failure is "paying yourself last" and taxing yourself never. The fix is a structure: separate pots, a scheduled owner pay, and a tax bucket funded from every business receipt.
- Separate pots
Business cash, owner pay, tax and personal money never mix.
- Scheduled owner pay
You get paid on a schedule, like an employee — not from leftovers.
- Tax from every receipt
A percentage moves to tax before anything else.
- Dated obligations
Tax dates, supplier dates and owner paydays on one calendar.
The pot structure
| Pot | Funded from |
|---|---|
| Business operating | Client receipts, minus tax share |
| Tax bucket | A percentage of every receipt |
| Owner pay | A scheduled transfer on a fixed date |
| Personal | Owner pay, then personal bills |
The monthly rhythm
- On each receipt: move the tax share immediately.
- On the pay date: transfer the scheduled owner pay.
- Pay the business bills from the operating pot on their dates.
- Review monthly: is the owner pay realistic against the receipts?
The owner-pay number
Owner pay should be a number, not a remainder — set from the average of the last six months minus tax and business costs.
When receipts dip, the pay is reduced deliberately in the plan, not discovered in the account. The calendar makes the dip visible months early.
Frequently asked questions
How should a sole proprietor budget?
Separate pots for business, tax, owner pay and personal spending — with tax funded from every receipt and owner pay scheduled like a salary.
Should I pay myself a salary as a sole proprietor?
Yes — a scheduled owner pay from the business pot. "Paying yourself last" is the classic failure mode of one-person companies.
How do I separate business and personal money?
Separate accounts or goals for each pot, and a fixed transfer date for owner pay. Separation is the whole system.
What if my income is too low for a fixed pay?
Set the pay at the six-month average minus tax and costs — and reduce it deliberately in the plan during known low months.
One owner, zero mixing
Free multi-pot planning for sole proprietors.