How can I increase PROFIT? Have you heard of the Bank Balance Accounting principle?

Profit First Book Cover

Most entrepreneurs do not have the time or gumption to read the different accounting statements necessary to manage the financial aspect of their business. Theoretically you should review and correlate your Income Statement, Balance Sheet and Cash Flow Statement monthly (or more frequently), but few entrepreneurs do. Most resort to “bank balance accounting,” where we check our bank balance every day and make financial decisions based upon what we see. Per Parkinson’s Law, we consume what we see in our bank account.

Profit First encourages the entrepreneur to continue “bank balance accounting” by first allocating money to profit (and other accounts) so that the entrepreneur sees the actual portion of deposits that are available for expenses and they automatically adjust their spending accordingly. About Profit First

“If you always do what you’ve always done, you’ll always get what you have always got.”

Thank you for taking the time to read this. I trust that the above has been informative and if there is any aspect that you wish to discuss further please contact us.

Disclaimer: This publication has been carefully prepared, but it has been written in general terms only. The publication should not be relied upon to provide specific information without also obtaining appropriate professional advice after detailed examination of your particular situation.

 

 

How a British naval historian from the last century can make you more profit

Profit First Book Cover

Author and British naval historian Cyril Northcote Parkinson theorized that our demand for a resource increases to meet the supply of it. That is why when we are given two weeks to do a project it takes two weeks, and when we are given eight weeks to do the same project it takes eight weeks. That is why when given $1,000 to complete our work we get it done with $1,000 and when given $10,000 to complete the same work, it takes $10,000. Profit First makes Parkinson’s Law an asset. By taking profit first the money available for expenses lessens, and we are forced to find ways to get the same things done for less money.

Thank you for taking the time to read this. I trust that the above has been informative and if there is any aspect that you wish to discuss further please contact us.

Disclaimer: This publication has been carefully prepared, but it has been written in general terms only. The publication should not be relied upon to provide specific information without also obtaining appropriate professional advice after detailed examination of your particular situation.

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.