Distribute money to your different accounts

Instructions

  1. Tell your accountant about Profit First and the system you want to use.
  2. Set up your accounts if you haven’t already with nicknames. 
    Write percentages next to the account name. For example, Operating Expenses are 45%. 
  3. Add 1% to all historical contribution levels for each account.
    For example, if your taxes were usually 5% of your total revenue, you will set up your tax reserve at 6%. 
  4. Look at your bank balance in your operating expenses and subtract any outstanding checks and payments.
  5. Divide up the remainder into your accounts.
    For example, if you have $2,000 currently available, apply your target percentages to that number.  
  6. Cut expenses by at least 10%.
    Cancel whatever you don’t need to help your business run efficiently.

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