Presented by: Brittnie Eiden, Enrolled Agent and founder of Eiden Tax and Accounting
Date: 10/21/2020
Profit-first approach means that you don’t just react, but you prepare. Brittnie Eiden shares the overview of the Profit First approach and how you can use it for your business. Unlike the usual business equation, this uses a revamped solution to proper bank balance accounting.
80% of the 28 millions small businesses in the United States use the sales-expenses=profit equation. Which means 80% of these businesses are surviving on a check-to-check basis. Brittnie introduces another equation, sales-profits=expenses or otherwise called the Profit First solution.
There are 4 steps to Profit First: small plates, veggies first, remove temptation, and rhythm. This stresses out the importance of having multiple bank accounts, allocation and the order, not having access to your profit and tax account, and the benefits of establishing a rhythm in the business.
Check out the book Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine on Amazon.