This is such an important (and common) question for sole traders and something that is important to establish early on so that you can get into a healthy routine to keep up with your business and personal expenses. 

First and foremost, you need to understand that your revenue (i.e. all of the money coming into your business) is used for things like tax, paying staff wages, utilities and other business overheads. You need to account for all of these expenses before you dip into it, or in other words, you should only take your salary out of your net profits. 

It can take time to figure out what you should be paying yourself and there may be some weeks where you earn significantly more or less than previous weeks. If possible, try to determine a set salary and add yourself to your payroll just like you do for your employees. This creates a sense of routine and can be easier to report when lodging your income tax return (it can also look better and raise fewer eyebrows compared to taking out large sums here and there). You can always adjust your salary as the business grows and turns more profit. 

There may be weeks/months where you don’t turn a profit at all (especially in the first year), but you still need to pay yourself. Take out what you need to sustain yourself and your business, but if cashflow problems are causing you a lot of stress, reach out for help and consider getting professional advice on how to minimise expenses, develop tax-saving strategies, budget more efficiently and improve your cashflow management. 

Paying yourself as a sole trader is much easier when you use accounting software as it pretty much calculates everything for you, or at least without the manual entry which leaves more room for human error. It can also help you identify tax deductible expenses and give you data insights of where you could potentially save. 

It’s also worth noting that the way you pay yourself may be directly impacted by your business structure. For example, sole traders are technically free to pay themselves when and how they like whereas directors of companies and incorporated businesses usually have to be put through payroll.