In last week’s article, we discussed evaluating and maintaining operating expenses. Which discussed the importance of regularly reviewing your expenses to ensure that you are receiving the business value you expect. Utilizing your existing expenses for maximum business value is a great way to efficiently run your business without increasing costs.
Why Prioritizing Profit is vital to your business. You can sum up why profitability matters to a business in just one word: stability. Being profitable means that you and your staff can depend on your business to support your needs. Profit isn’t a bad word. Profit is good because it lets you keep doing what you’re passionate about doing.
While Parkinson’s Law is based on time management, this same law can be applied to financial management. If you are depositing all your revenue into a single bank account and then managing your business out of that single account, then what you are doing is creating a surplus mentality which can lead to needless spending.
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?”