Profit First CPA Firm

Profit First, developed by Mike Michalowicz, is an innovative yet straightforward approach to managing business finances. Unlike traditional GAAP accounting, which can be complex and focus attention on the wrong areas, Profit First prioritizes cash flow and business growth. As a Certified Profit First CPA Firm, we integrate this system with your traditional accounting needs.

The Profit First system adapts personal finance principles to small businesses, similar to Dave Ramsey’s approach that finance is 80% behavior, 20% math. It helps you allocate cash effectively, ensuring you pay yourself, cover expenses, and drive profitability—often leading to a 200% profit increase within 18-24 months.

Profit First involves more frequent transactions, so maintaining diligent financial records is key. Instead of one large annual accounting bill, our Profit First clients opt for monthly services, either through us or a partner Profit First firm. This ensures consistent, predictable costs while covering all your accounting and financial needs.

For Controller Clients, we regularly review your business’s profitability and Profit First implementation. These reviews help identify potential tax issues early and keep your business on track for growth.

Our Profit First programs are focused on owner-operated businesses that have achieved some stability but are struggling to grow and provide the owners a consistent income. Our entry level Starter Package helps the smallest firms get control of their finances, but most Profit First clients utilize our Controller services to maintain stronger financial controls. Once your firm has managers that make financial decisions, our Fractional CFO package make more sense. Fractional Controller service gets you an outsourced accounting department for your business, while Fractional CFO offers you a modern KPI-driven finance department.

We utilize and support Profit First to help companies grow from owner-operator, where you have created a job, to owner-manager, with a real time and the freedom that comes from there.

While Profit First itself is straightforward, many clients find it goes faster and more successful with outside expertise – we did it here when we implemented it in our firm, and it helped us double our business over 24 months. If finances don’t come natural to you, or you find yourself procrastinating on financial matters, you’re not alone, you’re pretty normal, and you’ll benefit from having a Profit First Professional in your corner.

As a CPA firm and a certified Profit First Professional organization, we help you bring the concepts of Profit First into your organization while maintaining all the compliance that you count on your CPA firm to do for you. For those whose challenges are implementation and some of the issues regarding the psychology of money, we refer you to specialist Profit First Professionals to help you implement.

This focus on profitability means you take more out of your business. Any accountant can do your taxes and reconcile your books. Profit First bookkeepers can help you implement some of the cash management techniques. But bringing in a Profit First CPA lets you reap the benefits of the synergies of developing KPIs that maximize profitability and cash flow, keeping in compliance with the tax code, and having a single source of financial advice.

Profit First Professionals

What is Profit First and how does it work?
Profit First is a cash-management system that allocates every deposit into dedicated bank accounts—Profit, Owner’s Pay, Tax, and Operating Expenses—so profit comes first and spending fits what’s left. We integrate it with GAAP accounting and your existing bookkeeping.

Is Profit First GAAP compliant?
Yes. Profit First governs cash flow and behavior; GAAP governs financial reporting. We run your allocations alongside accrual accounting, monthly close, and standard financial statements.

Who is Profit First best for?
Owner-operated small and mid-sized businesses with inconsistent cash flow, thin margins, or owners who aren’t paying themselves regularly. It also works for growing firms adding managers and KPIs.

How fast will I see results with Profit First?
Most clients feel cash clarity within 30–60 days and see improved owner pay and profit in one to two quarters. Many reach strong, sustainable profitability within 12–18 months.

Do I need multiple bank accounts for Profit First?
We recommend separate accounts (Profit, Owner’s Pay, Tax, OPEX) plus optional “vault” or payroll accounts. Segregation creates guardrails that prevent overspending and missed taxes.

What starting allocation percentages do you use?
We assess your Real Revenue and target allocations for Profit, Owner’s Pay, Tax, and OPEX. We begin with current reality and step up each quarter toward your ideal TAPs without starving operations.

Will Profit First hurt growth or reinvestment?
No. It funds profit and taxes first, then forces disciplined spending and focused reinvestment. With CFO/Controller oversight, you’ll prioritize ROI-positive projects and healthy cash buffers.

How does Profit First affect my taxes?
You’ll set aside tax cash with every deposit, so no April surprises. We still perform tax planning, entity optimization, and quarterly estimates to legally minimize total tax.

Does Profit First replace bookkeeping or a controller?
No. It complements them. We still close the books, reconcile, and produce GAAP financials. Our Controller/CFO packages add budgets, forecasts, KPIs, and strategy to the Profit First rhythm.

Can I implement Profit First on my own?
Yes, but most owners move faster with guidance. As a Certified Profit First Professional CPA firm, we set accounts, percentages, schedules, and accountability—and troubleshoot real-world issues.

Which package fits my business: Starter, Controller, or CFO?
Starter fits simple businesses needing quarterly cadence. Controller suits firms needing monthly close, allocations, and KPI reviews. CFO adds modeling, pricing, capital planning, and board-level reporting.

What’s included in your monthly Profit First services?
Account setup, allocation schedule, weekly or biweekly cash sweeps, monthly close and GAAP statements, KPI dashboard, owner pay plan, tax set-asides, and quarterly strategy reviews.

How long does implementation take?
Most launches complete in 2–6 weeks: Week 1 discovery, Week 2 account setup and initial TAPs, Weeks 3–4 first allocations and baseline KPIs, then quarterly optimization.

Can Profit First work with seasonal or project-based businesses?
Yes. We adapt allocations to seasonality using rolling reserves, job-costing insights, and adjusted TAPs so you have cash in slow months without stopping owner pay.

Will my bank and software work with Profit First?
Usually yes. We integrate with QuickBooks Online and common banks. If your bank complicates sub-accounts or fees, we recommend alternatives and handle the transition.

What KPIs do you track in a Profit First engagement?
Cash runway, owner’s pay coverage, gross margin, overhead as % of real revenue, on-time tax reserve, AR/collections pace, and a few industry-specific metrics tied to your goals.

How much does Profit First implementation cost?
Transparent, fixed monthly pricing by complexity and cadence. See our Starter, Advanced Insight (Bronze), Fractional Controller (Silver), and Fractional CFO (Gold) tiers for scope and fees.

How do we get started with Profit First?
Schedule a meeting, upload recent financials and bank activity, and we’ll propose TAPs, open accounts, set the allocation calendar, and launch with a 90-day plan to lock in profit and owner pay.