Comments on: How to Use the Profit First Method in Your Small Business

By: Staci

Staci — Tue, 26 Oct 2021 23:28:12 +0000

So many great resources here!!! Thanks 🙂 I wish you had an affiliate program :-/

By: Martin Stacey

Martin Stacey — Mon, 02 Aug 2021 12:30:57 +0000

Hey, thanks for this!

Can I just check this is a good interpretation of the workflow?

My main account is the Expenses account, then I have 3 spaces Tax, Profit, Owners Comp. And then when I take money out to pay tax, or owners comp, then I transfer it back into the main Expenses account and pay from there?

By: Lauren

Lauren — Sun, 16 May 2021 22:30:12 +0000

Thanks for this thorough blog. I tried to sign up for Starling but for some reason unknown to Starling customer service they say I’m not eligible for a sole trader even though I AM a sole trader. They said they perform checks on opening the account but couldn’t go into specifics about what checks. My credit check is fine so I’m baffled. Shame as it sounded like Starling was a perfect fit for implementing the Profit First system. Could I effectively do the same thing in a Starling personal account? Does it have to be a business account?

By: Aleena Brown

Aleena Brown — Thu, 08 Apr 2021 12:31:09 +0000

In reply to Sarah. Hi Sarah, thanks so much for your question. As all personal circumstances differ from person to person, for specific personal questions such as yours we recommend speaking with a Profit First expert. Please do feel free to reach out and we will be happy to connect you with our Profit First expert who will absolutely be able to answer this for you based on your specific needs x

By: Sarah

Sarah — Tue, 06 Apr 2021 15:44:58 +0000

Hi Catherine, thanks for explaining things so clearly. Do you need to pay tax on the ‘salary’ you pay yourself each month (as it’s an income) and how does this fit into your tax return? Or perhaps the tax bucket you put to one side for tax on your business earnings covers the lot?

By: Aleena Brown

Aleena Brown — Tue, 11 Aug 2020 12:13:14 +0000

In reply to Geri.

Hi Geri!

We would suggest you have your main account as the opex account where your direct debits are paid from and into which your clients pay you. You can then use your pots as needed 🙂

Catherine x

By: Geri

Geri — Sat, 18 Jul 2020 18:26:59 +0000

Hi there, I have just applied for my Starling account, can I ask a question in regards to the ‘pots’ you have suggested? Am I correct that you need one account for customers to pay you (Income) And another account for operating expenses (paying direct debits etc)? If so do you need two main accounts and is this possible? Thank you so much BTW your blog is amazing!

By: Catherine Morgan

Catherine Morgan — Mon, 08 Jun 2020 19:32:43 +0000

In reply to Roy Summers. Hi Roy, Personally I would not include this in your TAPS. Many Thanks for taking the time to read this. Catherine

By: Roy Summers

Roy Summers — Mon, 08 Jun 2020 18:39:45 +0000

Hi,

Thank you for this post. I have recently started using the Profit First system in my business and have a question : Do I apply my CAPS to any unearned income? I have recently received a government covid-19 grant and am not sure if I should apply my CAPS as it is not earned income as such.
Could you advise?

By: Chloe

Chloe — Sat, 30 May 2020 03:33:49 +0000

This is so good, I’ve read the book and your blog. It’s great. I’m still unsure on how you know what % to allocate to the different banks. Do you start with your CAP? What if you’re not giving youself a profit at all yet (only Owners Comp) do you just start with 1% in the profit account?