Profit First Frequently Asked Questions

Frequently Asked Questions

Reserving High Percentages

for the Tax Account?

Profit First has all sorts of ways to make you feel good about your job, your business, and the way forward, like getting reimbursed for your taxes.

What Businesses Need to Use

Real Revenue

Get your financial house in order with Profit First and the Real Revenue concept for businesses with subcontractors and material costs.

Why Owner’s Pay, Profit, and Tax

Accounts Can’t Be One Account?

Owner’s pay, profit, and taxes need to always be in separate accounts to allow for a clearer view of monthly cash flow.

How Do I manage Deposits from

Total Income?

When you use the real revenue approach because of materials and subcontractors, you need two new bank accounts in order to correctly make allocations.

Real Revenue and How It Is Used?

Real revenue is a bookkeeping category used in businesses that have subcontractor and materials expenses. It gives the owner a clearer picture of the size and shape of his business.

Can I allocate more frequently or on

different days than the 10th and the

25th of the month?

Profit First bank allocations are best done on the tenth and twenty-fifth for efficiency and to gain insight into your finances.