I just finished having coffee with a friend of mine who owns a business. While these meetings are typically informal, we always wind up talking about our businesses and money.
He's been interested in Profit First, but just hasn't quite jumped in yet. As he took a sip of his coffee he looked at me and said, "Are all those bank accounts really necessary? Don't you have a spreadsheet I can track it on?"
To be honest, this question didn't surprise me too much. Not only is it a valid question, but it's a question I get all the time.
It's also the main reason Profit First fails.
So the short answer? Yes, you need the bank accounts.
Profit first is designed to support what you're already doing. Don't change changes your behaviors, change the system to support your behavior.
If you're like most business owners, you look at your bank account to make decisions, not spreadsheets.
By adding another spreadsheet to track your Profit First finances, you'll most likely ignore it and revert to looking at your bank accounts.
While the task of opening accounts seems cumbersome, it will save you tons of time and money in the long run.
Are you ready to be truly profitable? Open those accounts and get started!
Not sure how much you should be putting into your accounts? I'm happy to help you free of charge. Book a call with me and we'll get you set up to win.
Craig is a Certified Profit First Professional who is passionate about helping service based businesses become permanently profitable.