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

by Mike Michalowicz

Find a new bank that you have never worked with before. In this case, you will not be moving money too much, and you will rarely bring the two accounts to a zero balance (unless you are short on tax). So with this bank, you can be less concerned about any minimum balance fees they have. At the second bank set up two savings accounts (this is where you will collect interest because your money will pool for a while). The two accounts are PROFIT HOLD and TAX HOLD. Then link these two accounts to the respective PROFIT and TAX accounts at your primary bank so that you are able to transfer money. I will explain shortly when to transfer money and how often you will do it. But for now, I want to address one question you may have. You may be thinking, “Why should I set up PROFIT and TAX accounts at both my primary bank and my no-temptation bank? I’m an entrepreneur! I like shortcuts! Can’t I just transfer money from my primary bank’s INCOME account to the PROFIT HOLD and TAX HOLD accounts at my no-temptation bank?” While technically speaking you can do that, it is a bad idea for two reasons.