Any accountant or CPA can do your taxes and reconcile your books. But, how many accountants will also drive profitability in your business?
The Profit First system is a “game changer” in our ability to effectively guide our clients to becoming more profitable.
Accounting principles and tax reporting compliance do not take into consideration a business owner’s tendency to allocate cash for both business expenses and personal needs on a daily basis.
Day after day, we see businesses reporting a profit and owing taxes on that profit, yet they have no cash left in the business bank account. Why does this occur over and over again?
Bank Balance Accounting
You see how much money you have in the bank and pay bills or incur expenses based on the balance as of that moment, instead of allocating current cash for both immediate needs and future expenses.
Historian and author C. Northcote Parkinson addressed the fact that our demand for a resource will increase based on the availability of that resource. When we see an amount of cash in the bank account we tend to incur expenses based on the number we see. If there was less available, our needs would shrink and we would somehow make it work.
We all have these habits and tendencies. Instead of continuing to fight against them, the Profit First system works with them by allocating cash to different bank accounts based on a very specific methodology.
As a certified partner of Profit First, our firm guides you through these proven methods to greatly increase the profitability of your business.
We can work with you as a coach specifically on the Profit First concept. We also include the Profit First methods in our CFO or Accounting services packages. Either way, our goal is to help you maximize your profits.
We love the Profit First Methodology so much, we have implemented within Beyond Financials Consulting.
Want to learn more? Contact us for a Profit Assessment.