By Nino Fernandez.
There are internal management reasons, of coexistence with partners and even taxes that determine the convenience of formally establishing the owners' remuneration scheme.
What do I do with my remuneration? I collect a salary or withdraw dividends? It is one of the difficult questions that any businessman asks himself when his business is already on track.. A company does not always reach that stage, Clear. AND, meanwhile, the answer is usually simpler: money is withdrawn as the cash register allows it.
But even when the owner is a single person, The company can benefit if it formally establishes what its remuneration will be like.. If the partners are two or more, the topic becomes essential.
“Many small business owners fall into the temptation of not setting a remuneration, especially when it comes to single-owner firms, or when the company has a short life span” says Sandra Felsenstein, owner of the Dinka consultancy. "But it is important that the businessman understands that he must establish his remuneration not only to value the time and capital invested, but also to not bias or alter the company's results.”
In fact, salary and dividends are not antagonistic concepts, but complementary. “It is important for the entrepreneur to learn, input , to distinguish between owning and managing. Many times the owner also manages, but it is important to keep the roles formally separated, because that defines the money flows: "The person who works receives a salary for his work and the partner receives dividends if the company generates profits and if he decides not to reinvest them.", says Santiago Antognolli, owner of the Family Business consulting firm.
“Not determining one's own economic remuneration means not recognizing the high value of the entrepreneur's work in entrepreneurship.. It is a serious mistake to think that the salaries of collaborators or the company's expenses are more “valuable” than your own time.”, dice Felsenstein.
