Profit First - Financial Freedom For Your Business (and you)
No complex financial reports, just use simple bank balance accounting.
Imagine the freedom, control and confidence of knowing that there is money set aside for suppliers, GST / VAT / Sales Tax & Income Tax as well as paying yourself a profit distribution every quarter.
Cashflow is King
Cashflow is nearly always he the biggest challenge we see business owners face day to day. The constant week to week battle of money in money out.
This constant struggle set us on a mission to find an easy, manageable and effective system to manage cashflow. This journey has lead us to Profit First. We practice what we preach and we have implemented Profit First in our own business, and we know it works.
Thinking Cloud is one of the select few firms, Australia wide (one of the first in Australia) trained and certified in the Profit First Method to guide business owners and entrepreneurs in maximising their profits.
Proven System
Profit First has been implemented in thousands of businesses worldwide with enormous success. These businesses have had outstanding results.
Simple Cash Management
No complex financial reports, just use simple bank balance accounting.
Immediate Results
Profit First starts working almost instantly. From your very next receipt, you will start banking your profit. What are you waiting for? It is time to start, NOW.
So, What is Profit First?
ITS EASY
AND EFFECTIVE.
The 'pay-yourself-first' system matched up with the 'envelope system' and applied to business.
Profit First is a simple and powerful cash management system that ensures the business owner always take their profit first. No matter how small the income may be, they still get paid. Yes, you heard right, the owner of the business always take their profit first.
The Profit First system takes the traditional accounting formula
Income less Expenses = Profit
...and turns it around
Income less Profit = Expenses
PROFIT IS NOT AN EVENT.
IT IS A HABIT.
ITS EASY
AND EFFECTIVE.
The 'pay-yourself-first' system matched up with the 'envelope system' and applied to business.
Profit First is a simple and powerful cash management system that ensures the business owner always take their profit first. No matter how small the income may be, they still get paid. Yes, you heard right, the owner of the business always take their profit first.
PROFIT IS NOT AN EVENT.
IT IS A HABIT.
The Profit First system takes the traditional accounting formula
Income
less
Expenses
=
Profit
Where profit is an afterthought, it is what is leftover
...and turns it around
Income
less Profit
=
Expenses
DONT CHANGE YOUR HABITS.
Don't master accounting You just need a system that works with who you already are.
The 'old'
Income less Expenses = Profit
formula is not only contrary to human behaviour, but a myth that locks you into a never ending cycle of selling more yet profiting less, treating profit like an afterthought, secondary to growth. Profit First leverages human behaviour.
At the heart of Profit First are these 4 Core Principles
- 1Use Small "Plates" - All income is deposited into an "Income" account, ready to be dispersed into different accounts and pre-determined percentages. (Don't worry, we can help work these out). Does Grandma's envelope system ring a bell?
- 2Serve Sequentially - Always, always allocate money based on the percentages to the accounts first. Never, ever, ever pay bills first. Only pay bills with what is available in the "Opex" account.
- 3Remove Temptation - Move your "Profit" account and other "tempting" accounts out of arm's reach. Remove the temptation to "borrow" (ie. steal) from yourself.
- 4Enforce a Rhythm - Do your allocations and payables fortnightly (or weekly for some). Get into a rhythm of allocating your income, and paying bills each fortnight so that you can see how cash accumulates and where the money really goes. This is controlled recurring cashflow management, not fly-by-the-seat-of-your-pants management.
Is your accountant or bookkeeper stuck in the old way of just doing the books and filling out your tax forms?
Then we would love to show you what modern advisors do... they help you drive profitability. If you would like to book a time for a chat about Profit First. No strings attached, click on the button below.
At the heart of Profit First are these 4 Core Principles
Use Small "Plates" - All income is deposited into an "Income" account, ready to be dispersed into different accounts and pre-determined percentages. (Don't worry, we can help work these out). Does Grandma's envelope system ring a bell?
Serve Sequentially - Always, always allocate money based on the percentages to the accounts first. Never, ever, ever pay bills first. Only pay bills with what is available in the "Opex" account.
Remove Temptation - Move your "Profit" account and other "tempting" accounts out of arm's reach. Remove the temptation to "borrow" (ie. steal) from yourself.
Enforce a Rhythm - Do your allocations and payables fortnightly (or weekly for some). Get into a rhythm of allocating your income, and paying bills each fortnight so that you can see how cash accumulates and where the money really goes. This is controlled recurring cashflow management, not fly-by-the-seat-of-your-pants management.
Is your accountant or bookkeeper stuck in the old way of just doing the books and filling out your tax forms?
Then we would love to show you what modern advisors do... they help you drive profitability. Please, book a time for a chat about Profit First. No strings attached.