We were once approached by someone with a small project.  He was just interested in us “prettying up” his financials in preparation of selling his company.  He was concerned that his business was not paying him the money he wanted to make, and had just received a new job offer for $60,000.

When pressed about it, he admitted that he wasn’t terribly thrilled about this new job opportunity, but felt that he had to take it as, in his perspective, his only income from his current business was a $45,000 draw.

 But when The Bookkeeper looked at his financials, we saw:

  • Family’s health insurance             –       $9,600

  • Automotive payment                     –       $9,120

  • Auto, gas, insurance & repairs     –       $8,450

  • Meals                                                –     $10,200

  • Vacations                                         –       $7,700

 When added to his draw, this amounted to a total monetary benefit $90,070.

This equates to $116,500 in total equivalent taxable income, instead of the $45,000 the client perceived.

 When we met back with the client and illustrated to him how much he was actually making, he turned down the job offer, kept his business, and remained his own boss.