If you own 100% of the company, feel free to run it "out of your back pocket."
When I ran my own company (which I owned 100%) this would never, ever had occurred to me.
The salary I payed myself may have varied, depending on the monthly revenues, but - while being rather chaotic in other respects - I always made damn sure that the company's and my personal finances where strictly separated and that the financial paperwork was up to scratch.
As you aptly point out: The cash position is probably your most critical metric. Losing oversight over the finances can kill your company in - literally - days.
Seperating your own cash from the company's assets is, in my opinion, one of the most important things in achieving financial clarity.
When I was first looking at doing freelance work and talking to self-employed people, the big advice I always got was "have a business account". It startles me that anyone would do otherwise.
I absolutely agree, for a variety of reasons. I was just making the point that, if one is the sole owner, one has the (bad) choice to run it that way. But once others are involved as owners, investors, employees, etc., it is completely unacceptable.
Running a company out of one's back pocket is a very good way to spend a lot of time in the company of IRS agents and enforcement personnel.
The salary I payed myself may have varied, depending on the monthly revenues, but - while being rather chaotic in other respects - I always made damn sure that the company's and my personal finances where strictly separated and that the financial paperwork was up to scratch.
As you aptly point out: The cash position is probably your most critical metric. Losing oversight over the finances can kill your company in - literally - days.
Seperating your own cash from the company's assets is, in my opinion, one of the most important things in achieving financial clarity.