Category: Cash Flow

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…

Ocean 6 Wealth Advisory

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