Plant growing out of a pot of money

D&K Accounting are Profit First Professionals!

D&KAccounting are Profit First Professionals!

But what exactly is Profit First?

The Profit First model does exactly what it suggests. It puts profits first.

By prioritising profits, you prioritise your business. This helps you grow your business, which in turn boosts your earnings. It’s a cycle you wish to be in!

The model for Profit First flips the usual GAAP (Generally Accepted Accounting Principles) from

Sales – Expenses = Profits

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Sales – Profits = Expenses

With Profit First, the business owner will take a certain predetermined profit from each sale, leaving the rest for expenses. This way, you know you’re going to get some money each month instead of living off what has been left over after expenses have been paid.

This may seem like common sense, but it is surprising how many people do not realise how easy it is to do. They also do not realise how it will improve their business through this accounting model.

How can we help?

 

As Profit First Professionals, our advice and operations centre around the Profit First principles. We advise our customers that Profit First is beneficial to those just starting up a new business. Still, it can also be implemented for those who have had a company for a while. It’s not about changing your whole accounting system, more like adapting it to avoid spending any money unnecessarily.

We have recognised that businesses that use the Profit First approach not only survive their first year but thrive over the next five years. It also means that you can focus on doing what matters most to your business.

The four main principles of Profit First

 

Split payments down – you can make your accounts more manageable by splitting things down into chunks. This can help you feel less overwhelmed, and in turn, you deal with issues effectively as and when they pop up.

Remove the temptation – moving your money into dedicated accounts and out of the ‘business account’ takes away the temptation to spend the money you have on unnecessary purchases. We’ve all done it, but it’s best to move money into the correct pots to know what you can spend.

Find your rhythm – knowing where your money is going and which pots are for saving and spending is freeing for business owners. By using Profit First, you get into a routine, and soon you’ll be sorting your profits and expenses without a second thought.

Stay accountable – finding a Profit First professional, like D&K Accounting, will help you stay on track. We can help you get set up, and we’ll be in touch throughout the month to make sure that money has been moved to the correct accounts on the right day.

To find out more about Profit First and how we can help you and your business grow using it, get in touch with a member of our team today. We also have a handy financial planner available on Amazon to get you started on your Profit First journey.

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