Certified Profit First Professionals – New Zealand
We were the first firm to be certified as a Profit First Professional in New Zealand. What does this mean for you? We will guide you in the use of the Profit First methodology to greatly increase the profitability of your business. Of course, we will help you with your bookkeeping, 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.
What is Profit First?
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. That is, build the owner’s pay into all the current business expenses.One of the best small business thinkers in the business, Mike Michalowicz recently released his third book, called Profit First. This book solves one of the biggest problems most entrepreneurs have: how they actually get paid to run their business!
Mike mentions that this is similar to the envelope system that my mother used where, when my father gave her his weekly pay, she would actually divide the cash into different envelopes so that there was enough money to pay all the bills, when they were due. Mike suggests “an envelope” system (or in this case, a separate account) just for the owner’s pay or profit.
He asks his readers to forget the old, been-around-forever, profitless formula:
Sales – Expenses = Profit
and, instead use this new Profit First Formula:
Sales – Profit = Expenses
The maths in both formulae is the same. Logically, nothing has changed except that Profit First speaks to the human behaviour – it accounts for the regular business owners of this world who have a tendency to spend all of whatever is available to them. So in this regard, with the Profit First flip, everything has changed. Now the profit is secured first, and the business is run on the remaining cash that is left.
Most small business owners are bad at the financial stuff “why?” because they can’t read the financial statements. Mike’s book does a great job of simplifying all the financial concepts so we can understand them and pay our self first! Mike gives the owner real life assessments and workbooks to use.
We were extremely excited with the concepts and methods laid out in Profit First that we incorporated them into our own business. Now that we are experiencing the benefits of taking profit first we want to share the concepts and methods laid out in Profit First with you.
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