Profit Consulting puts the Profit First method to work: allocation before spending, so the margin is protected by design.
Cash flow trouble is rarely a revenue problem. Profit First turns traditional budgeting around by taking profit off the top on the day the money arrives, instead of at the end of the year when there is nothing left to take.
We review more than 1,000 returns a year, and the average business we look at is overpaying by about 40%. For most clients that saving is larger than our fee, which is what pays for the bookkeeping, the reporting and the advisory.
Based on the returns we review. What any individual business saves depends on its own circumstances.
Where the money actually goes today, by percentage, rather than by feeling.
Profit, owner pay, tax and operating expenses each get a share and an account of their own.
Targets are reached gradually, so the business is never squeezed into a decision it cannot fund.
Percentages adjust as the business changes, and the cushion keeps building.
Allocation percentages depend on the size, sector and cost base of your business, and are set with you.
That is usually where it helps most. We move in small steps, so the operating account is never starved on the way to the target.
Usually several. Separating the money is what makes the discipline hold, and the setup takes an afternoon.
A budget predicts. Allocation decides. The money is separated before it can be spent on something else.
