Director drawings vs salary?
I know every situation is different but I need people to explain this to me like I am 5 and not an accountant.
Our CEO has been told to use director drawings - no mention of paying them back until recently with a Div7 - instead of taking a salary.
Are there pros and cons to director drawings we aren’t aware of from the business point of view - they aren’t a sole trader, they have over 50 staff so we are medium by numbers and financially struggling with the amount they are taking out of the bank account.
Our new finance person is adamant the CEO take a wage because director drawings aren’t common for business our size but the accountants the CEO speaks to all say it is fine?
I just do not understand why there is an issue with her taking a salary instead of burning through the business funds - what am I missing?
u/Dragonsapling — 4 months ago
Are nails relevant in here?
I was made an EAF recently and in tribute to the evening I had my nails done up all pretty for the evening.
Anyone else got nails to match for their special evening? Show me ideas for my next big night :)
u/Dragonsapling — 5 months ago