You’ve had a good year. The business bank account’s looking healthy.
But now you're wondering:
How much of that cash should you actually leave in the company — and how much should you pull out?

It’s a deceptively simple question with some big implications for your taxes, your risk, and your peace of mind.

Here’s how to think it through:

1. Cover Your Operating Expenses

Before you do anything, make sure the business has enough to cover:

• Monthly software and subscriptions
• CRA installments or GST remittances
• Rent, contractors, or payroll
• Any upcoming large purchases (like new equipment)

Rule of thumb:
Try to keep at least 3 months of baseline operating costs in your business account.

2. Think About Taxes Owed

Even if the cash is sitting there, it might already belong to the government.

If you haven’t filed year-end yet, or if you’re behind on GST/HST, corporate tax, or payroll remittances — set that money aside now.
Don’t get caught off guard when the bill comes.

3. Invest Excess Funds or Pay Yourself

Once the essentials are covered, you’ve got two main choices:

• Leave the money in and invest through the corporation (for future growth)
• Take the money out via salary, dividends, or a shareholder loan repayment

Leaving funds in the corp can be smart if you’re planning to reinvest or want to build retained earnings.
Taking it out can make sense if you’ve already got what you need inside the company and want personal flexibility.

Quick Tip:

If you’re not sure how much cash the business really needs, build a simple forecast.
Map out 3–6 months of expected income and expenses.
That gives you clarity — and confidence — when deciding how much to draw.

Bottom line:
Just because the money’s there doesn’t mean it’s free to spend.
Plan it out, talk to your bookkeeper or accountant, and make sure your decisions align with both your tax plan and your personal goals.

‍