I need to share something that’s been coming up way too often lately. Several new clients have reached out to me recently - all with the same issue. Each one has an S-Corp, one owner who’s also the only employee. But… no salary. No payroll. In some cases, their previous accountant simply “issued” a 1099 to the owner from their own S-Corp. In others, they were told, “You can skip payroll now since your income is small. we’ll fix it at the end of the year.” 🚫 Unfortunately, that’s not how an S-Corp should work. What I end up doing is: 1. Educating the client - explaining why payroll is required and how it affects compliance. 2. Assessing the situation and choosing the best corrective path:     • either setting up proper payroll going forward,     • or when reasonable, revoking the S-Corp election     • or closing the entity to start fresh with the right structure. 3. Preparing everything properly for year-end filings. But one question still stays in my mind: WHY? Why do some accountants encourage S-Corp elections promising “tax paradise,” but fail to implement payroll, putting their clients at risk? Is it lack of knowledge? Or a quick-fix tactic to please the client short-term? #TaxAdvisor #Accounting #SCorp #SmallBusiness #Payroll #Bookkeeping #BusinessCompliance #FinancialClarity

He was making over $30K a month, and still couldn't make payroll. His business looked great on paper. He has strong sales, happy clients, and a growing team. But every month? He was stressed about making payroll. He was always juggling payments, moving money around like he was playing financial Tetris. The problem wasn't revenue. It was just timing. He was delivering work in January but getting paid in March. Meanwhile, he had to pay his team, his software, his overhead... all in January. Then he changed ONE thing about how he structured payments. Six months later, he had $60K sitting in his account, before delivering a single hour of work. Here's what he did: He stopped letting clients pay AFTER he delivered. He made them pay BEFORE. Simple, but it changed everything. Most founders think: "I'll get paid when I deliver value." Wrong. You get paid BECAUSE you're going to deliver value. The payment is the commitment. Cash flow problems aren't always revenue problems, sometimes it's just a timing problem. Change WHEN you get paid, not just HOW MUCH. Get money upfront. Turn your clients into your working capital. Run your business from a position of strength, not desperation. What's your payment structure? Are you leaving money on the table? Let's talk about it in the comments.

Profit on paper doesn’t pay payroll. I see it all the time, a company celebrating a “record profit” while quietly sweating next week’s payroll. That’s not bad luck. That’s a cash gap. You can have strong sales, healthy margins, and glowing reports… but if the timing of collections, expenses, and debt payments isn’t aligned, your “profit” is just a number on paper. Cash flow is the oxygen of your business, and when it gets tight, every breath feels harder. Here’s the truth: - Profit tells you how you performed. - Cash flow tells you if you can keep performing. If you’re tired of wondering whether the next deposit will cover the next payroll run, it’s time to fix the cash gap, not just celebrate the income statement. Let’s make your financials work in real life, not just on paper. #CashFlow #FractionalCFO #SmallBusinessFinance #Leadership #CFOInsights

When Payroll Feels Like a Loan As entrepreneurs, we often find ourselves in a tough spot that many might hesitate to admit: sometimes, you have to borrow just to make payroll. It’s not because the business is failing or because of poor leadership. It’s simply the reality that revenue doesn’t always keep pace with payroll demands. Clients delay payments, projects take longer than expected, and while our income might flow in quarterly, our team expects their paychecks on time, every month. That mismatch can quietly weigh on small and medium-sized businesses, and it often feels like a tightrope walk. You can't afford to delay salaries. Missing a paycheck can mean losing valuable team members. And constantly turning to short-term loans only adds to the chaos and can strip away focus and credibility. So, what’s the answer? That’s where Payroll Financing steps in. It’s not just another loan; it’s tailored short-term support designed specifically to help businesses like yours bridge those cash flow gaps while keeping your team's trust intact. Think of it as a financial safety net. When payments are slow, your salaries won’t be. When cash flow tightens, your reputation remains strong. Remember, people don’t just work for companies; they work for leaders who keep their promises. At Patnaar, we’re committed to creating a system that not only provides businesses with the flexibility to grow but also instils trust in payday, every single time. Because no employee should suffer from a client’s late payment, and no business should buckle under the stress of payroll. We’re here to help you navigate these challenges with confidence and compassion. #PayrollFinancing #SMEs #Entrepreneurship #Finance #PayrollChallenges #BusinessGrowth #Patnaar #Leadership #Payroll

The S-Corp Owner’s Dilemma: Salary vs. Dividend — What’s the Perfect Mix? If you’re an S-Corp owner, you’ve probably asked this question a hundred times: “How much should I take as salary and how much as dividends?” Get it wrong, and you either overpay in payroll taxes — or worse — invite IRS scrutiny for underpaying yourself. The Balancing Act: The IRS requires you to pay yourself a “reasonable salary” for the work you do. Anything beyond that can be taken as dividends (distributions) — which aren’t subject to self-employment tax. So, how do you find the sweet spot? Here’s a common, defensible approach (based on industry data): 50–60% Salary → Covers your active role and ensures IRS compliance. 40–50% Dividends → Reduces FICA taxes and maximizes after-tax income. Example: Let’s say your S-Corp earns $120,000 in net profit. Salary: $70,000 (≈58%) — subject to payroll tax. Dividends: $50,000 (≈42%) — tax-free from FICA, saving roughly $7,650 in payroll taxes. But remember — if you work full-time or perform most of the business activity, your salary percentage should lean higher. There’s no one-size-fits-all formula — only a defensible balance. Document your reasoning, back it with market data, and keep the IRS (and your wallet) happy.

So many business owners rush into forming an S Corp because they’ve heard it’s a great way tax move - and it can be. But the biggest mistake is not understanding what comes next. Once you elect S Corp status, you’re required to: 1. Pay yourself a reasonable salary through payroll 2. File payroll taxes regularly even if you’re the only employee 3. Keep your books and tax filings accurate all year long Skipping any of these steps can lead to penalties, missed deductions, or even losing your S Corp status. If your cash flow isn't consistent yet, hold off. Many new S Corps end up struggling with payroll and unexpected costs.  Don’t switch until your business can comfortably support it. . . . #SCorpTips #BusinessFinances #BusinessBookkeeping #BusinessAccounting #Bookkeeping #Accounting #SmallBusiness

𝗣𝗮𝘆𝗶𝗻𝗴 𝗬𝗼𝘂𝗿𝘀𝗲𝗹𝗳 𝗳𝗿𝗼𝗺 𝗮 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗶𝗼𝗻 𝗪𝗶𝘁𝗵𝗼𝘂𝘁 𝗣𝗮𝘆𝗿𝗼𝗹𝗹: What You Need to Know ! If you’ve incorporated your business and have been transferring funds from your corporate account to yourself as “salary” without running payroll, the CRA considers this outside the proper payroll system. Even if your #taxaccountant planned to reconcile everything at year-end, it’s important to understand the implications. 𝗪𝗶𝘁𝗵𝗼𝘂𝘁 𝗽𝗿𝗼𝗽𝗲𝗿 𝗽𝗮𝘆𝗿𝗼𝗹𝗹:   • CPP contributions and income tax deductions may not be correctly applied   • The CRA expects payroll filings for all wages   • Misclassifying payments can create issues if audited 𝗧𝗵𝗲 𝗴𝗼𝗼𝗱 𝗻𝗲𝘄𝘀: you can still rectify this situation. With proper guidance, it’s possible to: ✅ Reclassify payments and retroactively reconcile CPP and taxes ✅ Implement compliant payroll for yourself and any employees ✅ Avoid or minimize penalties and interest At #CJCPA, we help small business owners navigate these challenges. With over 30 years of experience and hundreds of corporate clients, we ensure payroll, #accounting, and #taxcompliance are handled accurately - so you can focus on growing your business without surprises at year-end.

💼 Professional & Polished: Sometimes it’s payroll. Other times, it’s a draw. Knowing the difference matters. Check out Joe’s quick tip on managing Owner’s Pay & Loans!

💰 Payday Super Is Coming – Starting 1 July 2026! 🗓️ The ATO has confirmed that from 1 July 2026, employers will need to pay superannuation for employees at the same time as their wages — not quarterly. That might sound like a big shift, but preparing early can make the change smooth and stress-free. Here are a few tips to get ready: ✅ Review your payroll system – make sure it can handle super payments each pay cycle. ✅ Check your cash flow – more frequent payments will require tighter cash management. ✅ Stay in touch with your bookkeeper or BAS agent – we’ll help ensure your systems and reporting are compliant well before the deadline. This change will help employees grow their super faster and reduce unpaid super risks for employers — a win-win when planned properly. If you’d like to get ahead and understand what this means for your business, now’s the perfect time to start preparing. — 👋 From your local team at Jim’s Bookkeeping Tropics – keeping small business owners ready for every ATO

They said 30-day terms but didn’t tell you when their pay run happens. We see this all the time. A client wins a big project with a big name. It looks great on the portfolio. But not so great in the bank. Because that shiny “30-day” term somehow turns into 60. Sometimes 90. Each time it’s another missed pay run or a rejection over a technicality no one warned you about. So, what goes wrong? And what can you do about it? Apart from calling and shouting which might make you feel better for a minute, but it doesn’t solve the problem. The truth is, there are simple things you can put in place to make sure invoices hit the payment run on time. And that any admin hiccups are fixed before they cause delay. What you really need is a framework. A clear process that makes sure every invoice has what it needs to move through their system quickly, and without excuses. That means understanding how their processes work, and designing yours to match. And when all else fails, having backup options in your working capital so payroll still gets met and you’re not left hanging because someone missed a deadline. We help agencies build this process from the ground up. So, they stop chasing corporates for money they’ve already earned and start running with confidence that cashflow will land when it should.