What Is Profit First?
Have you ever seen an accountant refer to themselves as a Profit First professional and wondered what that is? What is Profit First? What credentials do they have? What separates them from other accountants? Well, don’t worry. The mystery is over. Today we are going to take a look at exactly what Profit First is and who Profit First professionals are. Before we look at who Profit First professionals are let’s have a look at exactly what Profit First is.
Profit First is an accounting method that you can integrate into your business that allows your business to not only be sustainable but to grow over a longer period. One of the foundations of getting yourself into the Profit First mindset is accountability. Always account for the profit you’re making, the taxes you have to pay and any other overheads. Doing this allows you then to see how much money you have leftover. This is important as it avoids the possibility of overcommitting financially to ventures and campaigns that you might not otherwise be able to afford.
The system then leads you to focus on two percentages. The first is your Current Allocation Percentage (CAPS) which focuses on where the money is being spent right now in your business. It allows you to break down where expenses are being made. Something that quite a lot of business owners don’t pay attention to. The next one is the Target Allocation Percentage (TAPS) which is basically, in an ideal world, where you want your revenue to be spent and at what level once your business is running more efficiently than it is at the moment. At the end of each quarter, you should review where your business is at in regards to its accountability and the TAPS and CAPS.
Who are Profit First professionals?
Now that we have covered what the Profit First system is. Let’s now look at exactly who Profit First professionals are. Essentially they are established accountants who are certified and knowledgeable in the Profit First system. They will utilise their knowledge to help and assist business owners to grow their businesses both in terms of profitability and sustainability. They are seen not only as accountants or bookkeepers but also as strategic advisors who can provide an alternate insight into how your business can grow and areas for improvement that you may currently be neglecting.
The course that Profit First professionals undergo allows them to learn the methodology inside-out to not only understand how it works in business in general but also how to apply it to many different businesses in many different sectors. It also allows them to escape the mindset of them strictly being an accountant into being a Profit First advisor and accountant to business owners up and down the country.
Those who have passed the exam to become a Profit First professionals will be able to demonstrate this by having a badge to show whether they have passed the advanced course or the master course. These badges will look similar to those below:-
Want to know more?
Here at D&K Accounting, we are an established firm of Profit First professionals who have experience helping businesses owners from across the country turn their businesses into profitable and sustainable businesses by implementing the profit first methodology. If you want to know more about how Profit First can help turn around your business’s fortunes why not get in touch and we can have a chat and explore how it can help your business. You will find the badge on our website that demonstrates and proves that we are advanced Profit First professionals and proficient in implementing the Profit First methodology.