Profit First FAQ

Gain the answers to the most frequently asked Profit First questions.

Can't find your question? Set up a meeting with a Certified Profit First Professional.

Profit First Frequently Asked Questions

Which banks are the best when following the Profit First Cash Management System?

Is Profit First worth the effort?

Which Profit First accounts should be checking and which should be savings?

I have multiple forms of loans and debt. How do I pay it all off?

Can I use the Profit First Cash Management System in my personal finances?

I have a new business. When should I start using the Profit First Cash Management System?

I have substantial amounts of debt; credit cards, personal loans and bank loans. Some with very high interest rates. Which debts do I pay first?

Where do I pull money from when I don't have enough money in my Operating Expense account?

How is the basic and advanced Profit First systems different? Which one will work best for me?

What is the difference between Total Income and Real Revenue?

Is Real Revenue and Gross Profit the same thing?

Why is the tax allocation at 15%? Doesn't that feel kind of high?

I want to pay as few taxes as possible. Shouldn't I run up expenses to cut taxes?

How do I depict between normal employees and sub-contractors?

I take my owners pay in distributions. Do I still need a separate Profit and Owner's Pay account, since all the money flows to me?

I have an S-corp and as an owner, I am on payroll and have taxes deducted from it. Do I still need a tax account?

I have to pay sales tax as I am a retailer, which account does that come from?

I pay all my vendors on the same day of the month. If I do allocations to Operating Expenses on the 10th and 25th will it be problematic for paying vendors on time?

Why does the Profit First method require moving money twice?

Should Profit First be done retroactively?

My business has debt. I can't be profitable until I pay off all my debt, right?

How do you adjust the Profit First allocation percentages for other currencies outside the US?

Why should I allocate money from the income account to multiple accounts on the 10th and 25th instead of daily or as needed?

Can I allocate more frequently or on different days than the 10th and the 25th of the month?

What is Real Revenue and why is it used in the Profit First Cash Management System?

If my business requires running Profit First based on my Real Revenue, how do I manage the deposits from Total Income?

If the Profit, Owners Pay and tax accounts are all for the benefit of me, the business owner, can't they just be one account instead of three?

What's an example of a business that should be determining their Real Revenue?

Our payroll is such that my tax is already deducted from pay. Do I still need to reserve such a high percentage in the Tax account?

Do you still have questions? Or are you ready to make your profit a habit? Schedule a meeting with a Certified Profit First Professional.