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Profit First: Managing Deposits from Total Income

August 7, 2018

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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Profit First Strategies helps business owners experience profit.

Profit First Strategies

Profit First is a system that helps you produce profits in your business the first month and always. Using this approach to running a small business you can make profit a habit and not a remote possibility. The Profit First approach starts by rewriting the usual bookkeeping formula so that profit is taken and put in the bank with every bookkeeping cycle. The system follows through by instilling discipline in your budgeting and cash flow management. Read our articles to learn the basics of Profit First and Profit First Strategies that you can use this approach to make you business more successful and your business life more efficient and easier.
Profit First helps you experience profit.

Ronald B. Allen
CEO, Profit First Professional, Fix This Next Founding Advisor
Principle of an accounting firm that’s committed to educating business owners on their financial health, providing a trans-formative strategy and helping them experience their profit!