Profit First: A Simple System To Transform Any Business From A Cash-Eating Monster To A Money-Making Machine

Simply use the percentages in the Instant Assessment for your target allocations, but start at 1% allocation for the Profit Account, 50% for Owner’s Pay and 15% for the Tax Account. Use quarterly adjustments to step up to higher percentages and nudge your business closer to the TAPs recommended in this book.

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2. Serve Sequentially – Always, always move money to your Profit Account first, then to your Owner Pay Account and then to your Tax Account, with what remains to expenses. Always in that order. No exceptions. Move it, stash it and let it accumulate. And if there isn’t enough money left for expenses? This does not mean you need to pull from the other a

1. Use Small Plates – When money comes into your main operating account, immediately disperse it into different accounts in predetermined percentages. Each of these accounts has a different objective: one is for profit, one for owner pay, another for taxes and another for operating expenses. These are the four basic accounts and where you should get s

You probably already have one or two accounts with your bank (checking and savings). Keep the checking account as your Operating Expenses Account and set up Tax and Profit as savings accounts (these are simply holding bins), with Owner’s Pay as another checking account.