What is Profit First?
The GAAP (Generally Accepted Accounting Principles) formula for determining a business’s profit is Sales – Expenses = Profit. It is simple, logical and clear. Unfortunately, it’s a lie. The formula, while logically accurate, does not account for human behavior. In the GAAP formula profit is a left over, a final consideration, something that is hopefully a nice surprise at the end of the year. Alas, the profit is rarely there and the business continues on its check to check survival.
Sales – Expenses = Profit
Sales – Profit = Expenses
With Profit First you to flip the formula to Sales – Profit = Expenses. Logically the math is the same, but from the standpoint of the entrepreneur’s behavior it is radically different. With Profit First, you take a predetermined percentage of profit from every sale first, and only the remainder is available for expenses
Ready to learn more?
Naples Taxes – Laura’s Way! is offering you the opportunity to read the first 2 chapters of the award winning book Profit First absolutely FREE. Simply fill out the form below and you will be emailed a PDF copy of the first 2 chapters of the book. You are taking the first step to realizing more profit for your business. Enjoy!
Your Privacy is Completely Respected !
Mike Michalowicz, Profit First author speaks about Laura
Bank Balance Accounting
Most busy people resort to “bank balance accounting”. You check your bank balance every day and make financial decisions based upon what we see. Whatever funds are in the bank are just begging to be spent. We will consume what we see in our bank account. Profit First encourages the entrepreneur to continue “bank balance accounting” by first allocating money to profit (and other accounts) so that the entrepreneur sees the actual portion of deposits that are available for expenses and they automatically adjust their spending accordingly.
Year End Tax Surprises
How pleasant are those Year End Tax Surprises?
The Profit First system allows you to account for Taxes as the year goes on, instead of all at once. Since Taxes are what we do, we are able to help you make those tax friendly decisions.
Following an accounting program on your own takes time, commitment and discipline.
We all know how to exercise but those individuals who consult a fitness trainer gain a boost in confidence, expertise, motivation and ultimately RESULTS.
Quit wondering where your Profit went and let me help make the Profit First program work painlessly for you.
Waiting is costing you money. Call my office today to schedule a Profit First Consultation or if you prefer use the link below to book an appointment online that is most convenient for your schedule.