In this TriPod Unicycle Session, Ross and Tara Johnson of North Bay Bookkeeping explore the Profit First accounting method – what it is, why you need it, and how it works.
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Conventional accounting uses the logical (albeit, flawed) formula: Sales – Expenses = Profit.
The problem is, businesses are run by humans, and humans aren’t always logical. Serial entrepreneur Mike Michalowicz has developed a behavioral approach to accounting to flip the formula: Sales – Profit = Expenses.
Just as the most effective weight loss strategy is to limit portions by using smaller plates, Michalowicz shows that by taking profit first and apportioning only what remains for expenses, entrepreneurs will transform their businesses from cash-eating monsters to profitable cash cows.
In this Unicycle Session, Ross is joined by Tara Johnson of North Bay Bookkeeping – she’s a Certified Profit First Professional, Certified Pro Advisor for Quickbooks, and she’s worked with Ross first-hand to implement Profit First at Tricycle Creative.
In This Episode We Discuss
- What is Profit First?
- How to set up your Profit First system
- How Profit First is accessible for, and flexible to, any business
- Why Profit First is impactful for the most valuable employee: YOU, the business owner
- How Profit First varies from the traditional accounting methods
- That Ross definitely isn’t a sexist pig
- Biggest challenges that come with implementing Profit First
- Who should (and shouldn’t) use Profit First?