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Category: Cash Flow

Why You Should Scrap Your Budget For An Effective Cash Flow Plan

You can be forgiven for seeing a cash flow plan and a budget as one and the same. But in our experience, an effective cash flow plan is one of the most useful tools a business owner, incorporated professional or entrepreneur can use to organize and clarify their financial future.  Or anyone for that matter. Here’s why… A strict budget is like a strict diet. When you go over budget you feel like you have failed. Often being on a…

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How To Decide How Much Money To Take Out Of Your Corporation

As a business owner or incorporated professional, learning how to efficiently manage your cash flow is an important stepping stone to getting clarity in your finances. An unclear cash flow strategy and the failure to separate your personal and business finances will result in paying thousands of dollars to the CRA unnecessarily, which then becomes a tax problem.  Here are some tips to help you manage your cash flow and decide how much money to take out of your corporation:…

Taking Money Out Of Your Corporation | Ocean 6 Wealth Advisory

How To Make A Cash Flow Plan & Get Clear On Where Your Money Is Going

Many business owners and incorporated professionals find it hard to properly structure their cash flow and this means they end up paying more tax. This decreases their ability to allocate cash towards their goals and prevents them from achieving what they want in life. In this article, we are going to explain how to structure your cash flow and get a clear picture of where your money is going.  3 Steps To Proper Cash Flow Planning 1. Do a full…

Cash Flow Plan | Ocean 6 Wealth Advisory

Managing Cash Flow During A Crisis

With so many recent unknowns, it is understandable that cash flow has weighed heavily on people’s minds. That is why we decided to make this the focus of Ocean 6’s first-ever podcast, to share our tips on how to manage your cash flow in an environment that is constantly changing. Listen to the podcast and get the answers to some of our client’s most common questions.  How much cash should I have in my emergency fund? No one could…

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Tips For Managing Your Business Finances

One of the things we often see with successful business owners and incorporated professionals is that they’re managing their business finances in the same way they manage their personal finances.  Instead of seeing yourself as part of your business, treat yourself as an employee. From a financial planning standpoint, this means looking at your business and managing it as a totally separate entity.  If you have a business that is structured effectively, and you’re utilizing the benefits of having your…

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Why You Should Have A Capital Dividend Account In Your Corporation

One of the biggest secrets that successful business owners and entrepreneurs often don’t know about is the capital dividend account. The capital dividend account is a notional account, which means you will not see it unless there’s a balance. It allows for life insurance proceeds and the tax-free portion of capital gains to flow out of your corporation tax-free. The reason we call it one of the best-kept secrets for business owners is because almost nobody is using it. If…

Capital Dividend Account

Separating Your Personal And Business Finances

One of the things that we often see with incorporated professionals, entrepreneurs, and business owners, is the intermingling of their personal and corporate finances. The blurred line between their personal and business finances creates complexity, and as an entrepreneur, you cannot grow out of complexity.  To help simplify and organize your financial picture, we recommend that you ensure you’re taking the right amount of money out of your corporation, paying a dividend to you personally as needed, and leaving the…

How To Pay Yourself If You’re Incorporated (Salary Vs. Dividends)

One of the most common decisions that a business owner or incorporated professional needs to make is how to pay themselves. Many entrepreneurs decide to incorporate their business and then pay themselves a salary out of their corporation, but this often results in paying higher taxes on their personal income.  One of the major advantages of being incorporated is you get the benefit and the flexibility of being able to decide how to pay yourself, paying yourself a salary isn’t…

Ocean 6 Wealth Advisory

Why You Should Keep Your Money In Your Corporation

One of the things we see a lot when working with successful business owners, incorporated professionals, and entrepreneurs is that these individuals decide to get incorporated but they don’t take full advantage of their corporate structure. What we highly recommend is that, as a business owner, you leave as much money in your corporation as you can. Don’t take out money to pay down your mortgage, and don’t take out money that you don’t need to spend.  Leave as much…

Ocean 6 Wealth Advisory

Cash Flow Management For Business Owners

One of the things we’ve noticed among business owners, incorporated professionals, and entrepreneurs is that they often don’t know where the cash flow in their business is going. But just because this scenario is common doesn’t mean that it’s acceptable.  Imagine that you are the Chief Financial Officer of your financial situation, and we come to you and ask you how much money you spent last year and where it all went. Would you know exactly where that money was…

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