How to Have Weekly Clarity on Your Business Finances

A huge part of knowing the cash flow of your business is establishing a strong allocation rhythm. An allocation what? Your allocation rhythm is how often you log into your bank account and move money from your income account into the designated accounts (profit, owner's pay, taxes & operating expenses). The standard is the 10th and 25th. This allows you to move money around before invoices are typically due, while also giving you a chance to check in on your cash twice per month. Personally? I don't do this (and I normally recommend something different for my clients, too). I tried to do the 10th and 25th for a while, but failed miserably. The day kept slipping past me! Even plugging it into

How to Handle Inconsistent Revenue

Every business faces some peaks and valleys when it comes to their income. There are always going to be those good months and bad months. Your industry and business will determine how large these jumps are. If you have seasonal revenue, or receive payments in bulk orders, you know this frustration well. So what can you do? I recommend using a drip account. A drip account takes the income you receive and spreads it out over multiple months, allowing the high and low months to become more level. Let's say you own an event space that specializes in outdoor weddings. You're booked solid March-June & September-November, but due to weather, the summer and winter months are much slower. In a busine

How Profit First Saved Me From Identity Theft

Recently I discovered a hidden benefit to a common push-back I hear regarding Profit First. What is the push-back? "Do I HAVE to open all of those bank accounts? Can't I just do it on a spreadsheet?" Now before I share the hidden benefit, let me answer this question... Yes! Remember, money is about our behavior. Your company's finances are already on spreadsheets. If you're like most business owners, you're probably ignoring those. How will another spreadsheet be any different? Using the accounts allows you to see where your business stands from your smartphone. And, let's be honest, you're likely check your bank account daily anyway (or maybe even multiple times a day). So what is that hidd

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Profit First Coach |   (512)573-4387

Austin, TX

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