Summary
Owner's Comp: This instrument is really an indicator - or the product of - the prior five ratios. But even this ratio can be distorted. When calculating owner's comp, you cannot and should not include the wages paid to your spouse or business partner. Their compensation, or most of it, needs to be included under payroll costs. What about including perks in this calculation? That is permissible, so long as the owner can prove they are true perks and not necessary expenses.
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Extract
Checklists and Flying On Instruments
It's no secret that I love flying. And there are some clear parallels between flying and running a small business and I thought I would share a few of those with you in this column.
From the very first introductory flight, students are taught to use checklists. Checklists are designed to help you catch minor problems and discrepancies that, i...See the full content of this document
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