Book Review: Profit First

There’s a book called Prophet first by Mike Michalowicz. I picked up this book when I first started my pool company Mobile Area Pool Managment. At the time I was using one bank account for all of my business income and expenses. It was absolutely insane trying to manage, in my mind, all of the different expenses, and bills and financial obligations I had each week much less each day.

This book challenged me to think about how I am budgeting on a day-to-day basis. In the book he recommends not having one bank account but several. By doing that you’re able to manage your money just by opening your bank account and looking at your balances. Mike pit, bank, balance, accounting, and let me tell you it works! 

Now they’re five basic bank accounts that I recommend every business owner use. I don’t mean five different banks. I mean for checking account and one savings account. Your checking accounts are income, operations, employees/payroll, and profit. The savings account is for taxes.

By using this method, you can just open up your bank app and see how much money you have to spend in operations how much money you’re ready to pay your employees how much money you have set aside for taxes, and how much money you can take as a bonus from your profit account!