Profit First ExplainedSep 15, 2022
Profit First. It might sound overwhelming, it may seem a little complicated.
Here it is, broken down and simplified:
First, take a look at your total sales and subtract your cost of goods sold. The number you get is your gross margin or in Profit First terms, your real revenue.
Then, take your real revenue and allocate it over four different accounts:
2. Owner's Comp
3. Tax Account
4. Operating Expenses
It's that's simple! And it's a proven way to successfully manage your cash.
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