Profit First Cash Management
What is Profit First?
Profit First is a cash-management philosophy and system that creates long-term success for businesses by putting profit first.
This doesn’t mean make a profit at any cost — it means protect your company’s profit by setting it aside first.
Because profit is what feeds your purpose!
The Profit First framework focuses on four tenets:
- Use multiple bank accounts. Most businesses have just one checking account, where all the money is mixed together. Separating money by purpose (operating expenses, taxes, etc) gives you instant clarity and a natural budget — without clunky spreadsheets!
- Pay yourself first (that’s the profit part), then fund everything else. Determine what percentage of business income is needed to adequately fund each account bank account.
- Transfer money into the four bank accounts twice a month. On the 10th and 25th (or two dates you choose and stick to), move money from your Income account into the other accounts.
- Reap the rewards for giving every dollar a home. When you move money into the separate bank accounts, this removes the temptation to spend funds needed for other purposes. It’s the tried-and-true out of sight, out of mind concept. And it works!
Moxie is a Certified Profit First Professional. We’re authorized to represent the Profit First system. Yep, we’re kind of a big deal.
Profit First is a profit-building system (and a best-selling book) that’s used by thousands of businesses around the world.
Profit First Coaching and Consulting
Moxie’s Profit First coaching and consulting services help you implement the practical and powerful profit-focused framework into your business.
Sure, you could read the Profit First book — but we offer hands-on support and mentoring to put this philosophy into practice. And we’re more fun than the book! Here’s how to get started:
Step 1: Schedule an introductory 30-minute call (it’s free)
Moxie Bookkeeping is a Profit First Certified Master firm.
Step 2: Make a Profit First plan
Our process will get you clarity into your current financial position and make a self-managed plan to optimize your cash flow.
Deep-Dive Assessment
- Intensive virtual review of your financial software’s data (Xero or QuickBooks)
- Detailed report of findings (e.g., errors to fix, action steps for improving key processes, etc. — it can be eye-opening!)
- One-hour call to review report
Calculate Current Allocations
- Calculate current spending percentages for key areas (taxes, payroll, profit, etc.)
- Compare to target allocation percentages based on company size
- Review Chart of Accounts (COA) to ensure category names fit your business
- Coach you through setting up separate bank accounts
- One-hour call to review report
Create Your Roll-Out Plan
- Customized one-year plan (you can bet it includes a profit target!)
- Outline steps for hitting target allocations
- One-hour call to review plan
- Three additional one-hour calls to make sure all questions are answered and the profit habit sticks!