By “Total Annual Owner’s Salary”, we mean any monies you (the owner) receive, that are recorded on the Profit and Loss Statement.
- If you receive a salary on the P&L, that would count.
- If a portion of your salary is listed above the line (in COGS), that would count, also.
- If your have “Owner’s Salary Equivalent” listed on the P&L (might be in Payroll or Other Expense), that counts, too.
However, any draws that you take out of the company that are listed on the Balance Sheet do not count as “Total Annual Owner’s Salary” for the Company Focus Form. When doing our computations, these monies are already taken into account as part of the “Net Profit”.