"Distributions, Temptations, and That Sneaky Credit Card Clock"

In this episode of No Se Habla Taxes, I’m confessing something that every solo business owner has probably thought about: giving yourself a raise the moment new money hits the bank. 

But before I could celebrate my new client wins with a little extra payout, I had to pump the brakes and take a hard look at what’s actually smart for my business right now. 

We’re talking about: 

• 💸 Why I pay myself via distributions (not salary) as a single-member LLC 
• 🧾 How that 0% interest credit card I’ve been floating is about to turn into a pumpkin 
• 💰 The unglamorous magic of setting aside cash for taxes and emergencies 
• 🙅🏽‍♀️ Why “just because you can” doesn’t mean “you should” — especially when it comes to paying yourself 

This isn’t about being stingy. It’s about making intentional money moves as the CEO of your business—even if you’re the only one on payroll. 

✨ Bonus reality check: If you’re not saving at least 25% of your net income for taxes… this one’s for you. 

📥 Subscribe to No Se Habla Taxes and get more behind-the-scenes financial confessions, smart bookkeeping tips, and permission to not have it all figured out. 

Until next time: watch that credit card clock, save your receipts, and pay yourself like the boss you are. 

Let's connect!

LI: https://www.linkedin.com/in/armstrongmelissacpa/

Website: https://steadyhandaccounting.com/

Coaching Program Waitlist: https://steadyhandaccounting.myflodesk.com/ofgzp2o7tc

Transcript

0:10

Welcome back to No Se Habla Taxes, the podcast where A CPA does her own bookkeeping and lives to confess the tale. I'm Melissa Armstrong, fractional controller, solo practice owner, and the financial translator you call when winging it starts to feel risky and today. We're talking about temptation, so it's the start of the month. I am doing my usual, logging into QuickBooks, reviewing my bills, checking in on cashflow, and I see it, a couple of new client payments just hit my account, yay, growth, and then that little voice in my head says, Hey. Maybe you give yourself a little race. Just a, smidge, you deserve it. Now listen I do pay myself. Okay. And we'll talk about that some more in a future episode, but I do pay myself, and I think you should too. I am a single member, LLC, so when I take money out of the business, it's called an owner's draw. Not a salary. I'm not on payroll. And if that last sentence made your eyes cross, it's okay. Just know that what I'm talking about in this episode only applies to certain business structures, not all. And if you've been wondering which camp you fall into, spoiler alert, I'm not your tax expert. Are you surprised? Hope not. I never have been and I never will be proudly. So anyway, just as I'm reaching for the metaphorical race, I remember something that shiny zero interest card, I've been floating some expenses on. Do you remember I talked to you about it a few episodes ago? Well, the intro offer is about to expire, which means if there's still a balance, not only will I owe interest, it will be retroactive all the way back to day one. Not cute. Plus, I haven't set aside my tax stash yet as a self-employed human. I was advised to save around 25% of my net income to cover that delightful cocktail of federal, state, and self-employment tax that'll come knocking in April. And don't even get me started on the emergency fund. One of my long-term goals is to have between 30 and 60 days of operating cash on hand, you know, for slow months surprise expenses, or when Mercury ghost retrograde, and three prospects ghost me at once. So here's the deal. It's really easy to celebrate new income by spending it. We've all done it, but real sustainability comes from playing the long game. Where have I heard that before? Before you give yourself a raise or a bonus, ask yourself, do I have debt about to get more expensive? Have I set aside money for taxes and do I have enough cash to survive a quiet month? This is not about depriving yourself. It is about protecting your business, the one you decided to create, the one you should be nurturing, and it starts with visability. If you are doing your own bookkeeping, even just reconciling and glancing at a p l, every now and then, you're already ahead of the game. So yes, I had a moment. I almost paid myself a little extra, but instead I paid off a chunk of the credit card, moved some cash to my tax savings account, and promised future Melissa. She'd get her bonus next quarter if the numbers make sense and that my friends is financial adulting. Glamorous. No. Does it suck? Yes. Satisfying. Weirdly, also, yes. So if this episode made you think twice about your own payday logic, make sure you are subscribed to No Se Habla taxes. And if you're navigating these decisions solo, I've got more confessions and bookkeeping. Real talk, calming your way. Until next time, save for taxes. Watch your credit card clocks and pay yourself like a boss, not a reckless intern.