What is profit first?

Profit First Book CoverOne of the best small business thinkers today, Mike Michalowicz recently released his third book, called Profit First. This book solves one of the biggest problems most entrepreneurs have: how do they actually get paid to run their business!

The story goes like this: The owner works really hard to sell and pay all their bills every month. When they go to pay themselves last, there is no money left! Mike’s new system proposes to change all of this and pay the owner first. Read how…

New Zealand’s Only Certified Profit First Professional

We are the only firm in New Zealand to have received certification as a Profit First Professional.

certNot only do we have direct access to Mike Michalowicz (mi-‘kal-o`-wits) the author of the book Profit First and the Profit First Professionals Team, we also have access to all the global Certified Profit First Professionals, who are all working with clients using the Profit First Formula.

What does this mean for you? As you can see we have access to a wealth of knowledge and experience, through the Profit First Professionals network, to be able to address any situation you find yourself in. We are able to guide you using the Profit First methodology to greatly increase the profitability of your business.

Of course, we are able to help you with your books, manage your accounts and do your tax returns – but any bookkeeper can do that.  Where we differ is that we also provide the most important financial factor – helping you make more profit.

Insights from your Profit and Loss Account

Most small business people would agree that their Profit and Loss account (now more correctly called a Statement of Financial Performance) is among the easier – if not the easiest – financial document to understand. It’s typically presented in two parts.

The top half of the statement reveals the various sources of Income the business has received for the period covered, such as a month, a quarter, half year or full financial year. After subtracting the cost of producing your goods or services, commonly referred to as the Cost of Goods Sold, it shows your Gross Profit figure.

The bottom half of the account lists all the relative fixed running costs (business overheads) such as rent, power and communication costs you need to pay each month regardless of sales levels. When these costs are subtracted from the Gross Profit the result is a Net Profit figure (before tax).

So far, so simple, but you can learn more. Read More »

Workable New Year Resolutions

New Year Resolutions –  we’ve all made them, and broken them − often before the end of January. There’s something about New Year celebrations that makes us yearn for a fresh start, so do not be dismayed, remember that every day begins a new year if you count 365 days forward. Therefore why not make today the day that you set your goals for the next twelve months and to help you there is a way to make that desire for change more permanent.

Here’s a twist that can make your resolutions more durable, more beneficial and less prone to that embarrassing quick fade.

Align goals to your business

Try aligning personal goals to your business goals. This can deliver more benefits than you might have anticipated. For example, suppose your goal is to take a month’s holiday in September of this year – perhaps the first real holiday you’ve had in years.

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Five simple steps for crisis survival

It’s surprising how much value the average business now stores in digital form.

Imagine what would happen right now if you lost all your computers and servers through a fire, flood, or other extreme event. How long would it take you to get up and running again? Think of your accounting records, customer history and databases, emails, templates, spreadsheets, tenders and quotes, project management records, software programs and many more digital assets.

Just a few years ago, it might have taken days, weeks or even months to restore everything. Now, thanks to the latest technology, you can keep running seamlessly. You might lose other assets in a disaster, but there’s no longer any need to lose valuable digital assets. Read More »