Profit First is a cash-management system. We don’t do anything on accrual or any of that funny-money stuff. It is really simple: Did you get the cash or not? And did you spend the cash or not? That’s it. Nothing else really matters unless cash happens. So that is why our focus is exclusively on cash. If you are wondering how Profit First addresses depreciation or accounts receivable, you are still thinking funny money. We are only going to measure actual cash transactions. Money in. Money out. Real money. Period.
