February 10, 2020

Profit First: Managing Deposits from Total Income

Profit First Methodology
Ronald B. Allen

How do you Manage the Deposits from Total Income when Using the Profit First Method?

If
you are making a Real Revenue calculation, that means you have material costs
and/or subcontractors.  In this case you
need to open an additional bank account.

All
your deposits from sales go into the Income account. Next, you take out the
normal percentage of your Materials & Subcontractors and move the money to the new Materials
& Subcontractors account. Then, the remaining money in the Income account
is allocated according to your Current Allocation Percentages.

If you are confused, still have questions, or want to know how we can help you implement Profit First in your business, Schedule a time with one of our Certified Profit First Professionals to Uncover Your Profit today!

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Real Revenue and How It Is Used

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Reserving High Percentages for the Tax Account Even When Taxes Are Already Taken Out

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