Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine

by Mike Michalowicz

Now that you’ve set up your five foundational accounts at your primary bank, your next step is to set up two “no-temptation accounts.” We are going to get your taxes out of sight and out of mind. And we are going to do the same with your PROFIT account. You may be thinking, “Why do I need to do this? I already have a TAX account and PROFIT account at my primary bank. Why do I need a duplicate?” The reason we have these secondary accounts is to keep the money that you allocate and reserve for tax and profit out of your sight. Because when something isn’t available to consume, you don’t consume it. If something is not readily available, we are unlikely to go through an extraordinary measure to consume it. Your profit is for you, and if you can access it easily, you might be tempted to “borrow” from it to cover expenses. And the tax money? That belongs to the government. We are going to make sure you never borrow (a soft term for “steal”) from these accounts.