{"id":225603,"date":"2023-10-11T09:00:07","date_gmt":"2023-10-11T09:00:07","guid":{"rendered":"https:\/\/www.markperlbergcpa.com\/steps-for-prioritizing-profit-in-your-atlanta-small-business\/"},"modified":"2023-10-11T09:00:07","modified_gmt":"2023-10-11T09:00:07","slug":"steps-for-prioritizing-profit-in-your-atlanta-small-business","status":"publish","type":"post","link":"https:\/\/prosperlcpa.com\/blog\/2023\/10\/steps-for-prioritizing-profit-in-your-atlanta-small-business\/","title":{"rendered":"Steps For Prioritizing Profit In Your Atlanta Small Business"},"content":{"rendered":"
\n

Profit is the lifeblood of any organization. <\/span><\/p>\n

Show me a small business with PROFIT at its center, and I’ll show you something worth modeling yourself after.<\/span><\/p>\n

An organization NOT to model yourself after: the federal government. They prefer to operate in deficit mode, narrowly avoiding yet another shutdown this weekend with <\/span>a temporary funding bill<\/span><\/a> that expires around Thanksgiving.<\/span><\/p>\n

So stay tuned for more drama on that front. Meanwhile, I\u2019d like to help you avoid drama on your turf, by creating a strategic plan for prioritizing profitability. You might have heard the term “profit first accounting” in various business-type conversations.<\/span><\/p>\n

It\u2019s not a new philosophy. It was first made popular almost a decade ago by Mike Michalowicz and his book, <\/span>Profit First<\/i><\/span><\/a>.<\/i><\/span><\/p>\n

I think it\u2019s worth remembering, so today, I thought I’d cover some of those core principles so that it might spark new accounting ideas as you prepare your Atlanta business for the close of another year.<\/span><\/p>\n

For a deeper dive, obviously, read the book, and we can talk more about putting it into practice.<\/span><\/p>\n

But here’s a start.<\/span><\/p>\n

Steps For Prioritizing Profit In Your Atlanta Small Business<\/strong><\/span>
\u201cMoney is a terrible master but an excellent servant.\u201d \u2015 P.T. Barnum<\/i><\/span><\/p>\n

In the world of business, priorities are essential for long-term success. <\/span><\/p>\n

So, where does profit fall on your list of priorities for your small business? Traditionally, profit might come after handling expenses like COGS and payroll, but a profit-first approach flips that. You pay yourself first.<\/span><\/p>\n

Here are some shifts that would need to come first\u2026<\/span><\/p>\n

1. Structuring Your Accounts<\/strong><\/span><\/p>\n

One of the first steps in embracing the profit-first mindset is organizing your bank accounts strategically. This simple adjustment, implemented with your accounting team’s help (ahem), will keep your small business profit goals on track. <\/span><\/p>\n

Here\u2019s the setup:<\/span><\/p>\n

Profit: Savings Account<\/span>
Owner’s Pay: Savings Account<\/span>
Tax: Savings Account<\/span>
Operating: Transaction Account<\/span>
Revenue: Transaction Account<\/span><\/p>\n

2. The Weekly Instant Assessment<\/strong><\/span><\/p>\n

Fill out the <\/span>Instant Assessment Table<\/span><\/a> (from the author’s website) on a weekly basis to maintain allocation and accuracy. You and your team will need to record and report all revenue appropriately. <\/span><\/p>\n

Be mindful that tax laws may impact the percentages year by year. This is a key area where I can help you walk out these principles.<\/i><\/span><\/p>\n

3. Implementing Profit Transfers<\/strong><\/span><\/p>\n

Every two weeks, the transfer of funds becomes your small business profit-first ritual. Accountability is paramount here. Consider partnering with a trusted team member to ensure precise fund allocation according to these objectives:<\/span><\/p>\n

Profit: Build Profit Reserves<\/span>
Owner’s Pay: Take Home Your Compensation<\/span>
Tax: Fulfill All Tax Obligations<\/span>
Operating: Cover Day-to-Day Expenses<\/span>
Revenue: Exclusively for Income Deposits<\/span><\/p>\n

Making Profit Your Small Business Mantra<\/strong><\/span><\/p>\n

The profit-first mentality is not a groundbreaking concept anymore, but it’s a pivotal step for small businesses seeking improved cash flow management. And if your current strategies aren’t giving you what you want, why not give it a try for a month or two?<\/span><\/p>\n

After all, adaptability is a hallmark of successful businesses, as I\u2019ve said before. If you have any questions about these profit principles and how they can benefit your<\/span> <\/span>Fulton County <\/span><\/span>small business, don’t hesitate to reach out:<\/span>
https:\/\/calendly.com\/d\/46r-49m-93k\/10-minute-intro-call<\/a><\/strong><\/span><\/p>\n

 <\/p>\n

Your profit is my priority,<\/p>\n

Mark Perlberg<\/strong><\/p>\n

 <\/p>\n<\/p>\n<\/div>\n