As business owners, we have a LOT of responsibilities. Paying the bills, covering wages, keeping on top of taxes, and making sure there’s something left for you. But how often do you end up guessing how much you’ll need for each expense? Maybe you cross your fingers and hope there’s enough in the account for everything. Or maybe you’ve had weeks where paying yourself felt impossible.

Why Profit First Matters

Profit First is a cash management method designed to make sure the business owner gets paid, and taxes are covered, from day one. Instead of waiting to see “what’s left” after expenses, you take your profit and tax amounts out first. The business then runs on what’s left in the operating account, forcing you to be more intentional about spending.

This isn’t about complicated formulas. It’s about creating a clear system where every dollar in your business has a job.

How Profit First Works

1. Open multiple bank accounts – typically for Profit, Owner’s Pay, Tax, and Operating Expenses.
2. Decide your percentages – as an example, 50% to Owner’s Pay, 30% to Operating Expenses, 5% to Profit, and 15% to Tax.
3. Every time money comes in, divide it across the accounts according to those percentages.
4. Use each account for its purpose only – don’t dip into tax or profit to cover day-to-day bills.
5. Review and adjust – tweak the percentages as your business grows and stabilises.

Example:
A $10,000 deposit could be split into:

• $5,000 to Owner’s Pay
• $3,000 to Operating Expenses
• $500 to Profit
• $1,500 to Tax

Why This System Works Long-Term

When you start using Profit First, you’re not just moving money around, you’re changing how you think about your business finances. Knowing exactly what’s in each account means you can make confident choices about hiring, equipment upgrades, marketing, or growth opportunities without wondering if you’re risking your tax money or your own pay. It gives you a clear “yes” or “not yet” answer before you commit, so you can grow without debt or cashflow stress.

You Don’t Have to Be a “Numbers Person”

You don’t need to love spreadsheets or have a finance degree to make Profit First work. The system is simple, visual, and bank-account based. Once it’s set up, you’ll quickly see where your money is going and how much you can actually afford to spend. Even small, consistent steps will improve your cashflow and reduce stress.

Where to Learn More

If you want help setting up Profit First in a way that’s easy to follow (and stick to), the Unexpected Bookkeeper course helps you through the process step-by-step. You’ll learn how to implement a cashflow system that works for your business, without jargon or overwhelm. 

We can't wait to see you there!