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

by Mike Michalowicz

Transfers from one bank to another are not instantaneous. It can take three days or longer (weekends and holidays add time), and when you log into your primary account, the money looks as if it is still there. The goal with Profit First is to give you instant and accurate knowledge on where your cash stands. When you move money from one account to another at the same bank, the transfer usually happens instantaneously. By first moving money from your INCOME account to the PROFIT and TAX accounts (along with the other accounts), you will instantly see where your money stands, on their respective plates. Now that your money is clearly on the right “plate” at your primary bank, initiate the transfer to the PROFIT HOLD and TAX HOLD accounts at the second bank. Now, anytime you log into your primary bank you will know exactly where you stand, even if the transfer to your no-temptation bank hasn’t completed yet.