The Holistic Accountant
A holistic accountant goes beyond tax returns, aiming to offer proactive advice to maximise clients' wealth after all taxes. Stuart Wemyss and Mena Abraham explore multifaceted considerations weekly, highlighting the need for a holistic approach. Each episode is succinct and to the point with no fluff or sales pitches. For further details, check out www.prosolution.com.au.
The Holistic Accountant
Ep 172: Capital allocation policy: owner wage, buffers, reinvestment, investing, lifestyle
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Random distributions create random wealth outcomes.
In this episode, Stuart and Mena introduce the concept most business owners don’t have, but desperately need: a written capital allocation policy.
They break down how surplus cash should be intentionally directed across six competing uses: owner wage, tax, buffers, reinvestment, external investing, and lifestyle. Because if it’s not decided in advance, it gets decided emotionally.
They explore structural landmines like Division 7A traps, retained earnings build-up, arbitrary distribution caps, and how tax minimisation can unintentionally block wealth creation.
Then they outline a practical hierarchy: pay yourself properly first, build stability through buffers, treat reinvestment like an investment committee decision, and only then allocate capital externally or toward lifestyle upgrades.
This episode is about turning business income into durable wealth, not just higher spending. If your surplus seems to disappear each year, you likely don’t have a revenue problem. You have a policy problem.
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Work with Mena & Stuart's team: At ProSolution Private Clients we encourage clients to adopt a holistic and evidence-based approach when making financial decisions. Visit our website.
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IMPORTANT: This podcast provides general information about finance, taxes, and credit. This means that the content does not consider your specific objectives, financial situation, or needs. It is crucial for you to assess whether the information is suitable for your circumstances before taking any actions based on it. If you find yourself uncertain about the relevance or your specific needs, it is advisable to seek advice from a licensed and trustworthy professional.
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