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      03-02-2012, 01:02 AM   #15
jakc
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Drives: Honda Accord
Join Date: Nov 2011
Location: Old Bridge, NJ

Posts: 8
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Quote:
Originally Posted by JulieDriving View Post
OP, I don't understand. Why would your annual salary look like half what it really is.... wouldn't that even out after the first year? If part of your first year's income gets counted in your second year and so on?
Yes you're correct, it should eventually even out but since I started this business 3 years ago with no past experience, I spent the majority of my profits back into the business learning what works and what doesn't rather than focusing on generating higher profits since it was enough for the bills I had to pay which was really all I wanted in the beginning. As time went on I spent it to build our infrastructure to handle higher volumes for clients and I would time it for the Q4 holiday season where I pretty much see most of the profits and revenue. So far we're more than doubling profits each year but I don't report that on taxes until the following year because of extended net terms on our payments.
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