Putting it all Together: How Profit First Works
Aug 03, 2022
Being self-employed is the best thing on some days and the worst on others. There are many days when it seems like the work never ends. There are days when you wonder if you’ll ever find the Freedom you set out to have by owning your own business.
Finding that Freedom means you set your business up to work for you – not you always working for it. This means you know your numbers because you have a simple system in place. This means you know your profit and you know how to make decisions based on profitability not just production.
So how does this happen? Glad you asked.
Using the Core Principles of Profit First for Dentists, let me review the overall system. If you need a refresher on these core principles, go back in my blog posts where you’ll find a blog post for each one. Or better yet, grab a copy of my book where you can learn all the details.
Remember all the money flows into the Income Account each week. At the end of the week, all of the money collected and deposited that week will be allocated by percentage to the other four core accounts. They are Profit, Owner’s Compensation, Tax, and Operating Expenses. If you choose to use the No-Temptation Accounts, you’ll have two additional accounts at a bank across town, Profit and Tax accounts.
The big question now becomes, what percentage do I allocate to each account? How will you make sure you have enough in the Operating Account to pay all the bills and not run short? What if your current situation is way out of alignment with what you feel you should be doing?
These are all great questions! And likely you have even more.
Over the next several weeks, I’m going to focus my blog posts on how to complete your own self-assessment so you too can enjoy the benefits of Profit First for Dentists. Be sure to look for my emails when a new blog is ready each week. And remember, I’m always here if you have questions. Use the ‘Let’s Talk’ button at the top of this page or on my website http://profitfirstdentist.com/.
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