The Profit First Allocations are based on percentages. So, at first glance you might think that the order of accounts is not important. Since all the Allocations add up to 100%, then the order in which the allocations are made should not matter. Right?
Like many business owners, you constantly worry about making ends meet. Making sure that your staff, rent, insurance, utilities, marketing expenses, and everything else is getting paid.
The yearly tax bill is the #1 expense that most business owners are unprepared for. When Tax Day rolls around every year, you hear from your accountant that you owe taxes, and the immediate reaction is “how is that possible? I never seem make any money; how can I possibly owe the government money?”
It’s not uncommon for business owners to start examining their expenses and think they’re spending too much. But don’t go cutting expenses blindly – you don’t want to become a cheap business owner and compromise your business effectiveness and efficiency. There are smarter ways to save money without harming your business.
If you are like most of the small businesses owner we work with, when you hear accounting, you think of long complicated reports and spreadsheets filled with confusing terms. This makes the process of reviewing and managing our books feel like quite the chore. And we all know what happens when we don’t like to do something? You guessed it. We just don’t do it.