Why I Opened 5 New Business Bank Accounts for Profit First

Why I Opened 5 New Business Bank Accounts for Profit First

Today, I took a big step in streamlining my business finances: I opened five new business bank accounts.

It might sound like a lot, but the process only took a few clicks. More importantly, this system will transform the way I manage my finances and ensure my business grows sustainably.

The Five Accounts

Here’s what I set up:

1️⃣ Income (checking): The hub where all revenue flows in.

2️⃣ Operating Expense (checking + debit card): For everyday business expenses.

3️⃣ Profit (savings): To prioritize profit and build reserves.

4️⃣ Owner’s Comp (checking): To ensure I’m paying myself consistently.

5️⃣ Tax (savings): To stay prepared for tax season without stress.

How It Works

Every dollar that flows into the Income Account gets assigned to one of the other accounts:

A portion goes to Profit to ensure it’s prioritized, not just a leftover.

Owner’s Comp ensures I get paid as the owner.

Operating Expense covers necessary costs to run the business.

Tax builds up reserves for the end-of-year tax obligations.

This method makes profit a habit rather than an afterthought, creating a clear roadmap for financial success.

Why This System Works

This approach is inspired by the book Profit First by Mike Michalowicz and its tailored version, Profit First for Real Estate Investing.

Here’s why it’s a game-changer:

Clarity at a Glance: Checking your bank accounts provides an instant snapshot of your cash flow without needing to log into complex bookkeeping software.

Alignment with Habits: Most business owners already check their bank accounts often. This system uses that habit to deliver quick insights.

Reduced Stress: No more scrambling for tax payments or wondering if you can pay yourself. Every dollar has a purpose.

Does Your System Work for You?

If your current financial system doesn’t provide clarity or causes anxiety, consider giving this method a try. It’s simple, effective, and can help you take control of your finances.

Want to Learn More?

I’m happy to help answer any questions about implementing this system. Check out Profit First and see how it can transform your business finances. You deserve a system that works for you—not against you.

Ready to prioritize profit and gain financial clarity? Let’s chat!