What is Profit First?
Profit First is a straight-forward but innovative approach to business finances developed by Mike Michalowicz. Traditional business accounting has evolved from GAAP (Generally Accepted Accounting Principals), which is too complex for most small businesses, and drives owner attention to the wrong area. As a result, most small businesses operate on a cash-basis, keeping “tax-books” once a year. While this lets you comply with the IRS, it doesn’t help you drive your business. As a Certified Profit First CPA Firm, we help you with your traditional accounting needs while implementing the innovative Profit First system.
Profit First is an adaptation of traditional personal finance principles to the needs of a small business. Similar to the Dave Ramsey concept that personal finance is 80% behavioral and 20% math, Profit First drives you to operate your business in such a way that you focus on the cash flow allocations necessary to pay yourself and cover your bills. It’s essentially a set of accounting practices that help influence you to make better decisions. Generally Profit First clients increasing their profits 200% in the first 18-24 months.
What a Profit First Professional for a CPA?
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. 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.
Why Bette Hochberger, CPA, CGMA, for your Profit First CPA Firm?
Technical expertise and intellectual heft.
We’ll quickly help you implement the Profit First system, generally over a few months. We’ve done this with multiple companies, so we’re aware of the various pitfalls and change management problems that interfere with a successful implementation. We also offer Fractional CFO services, so if you are reinvesting your profits and growing your business rapidly, we’ll grow with you. And then when you keep growing and are ready to bring in an full-time CFO, we’ll help you transition the appropriate services in-house. We hope to serve your needs for many years to come, but we understand that there are limits to our boutique firm, and we’ll happily celebrate your success if you need to move to a regional or national CPA firm in the future, and we’ll keep you on our holiday card list.
When you are ready to have your business work to support you and your accounting and financial systems work for you instead of against you, let’s evaluate how to use Profit First to grow your business, and start putting you on the path to greater and greater success.
Schedule for a free consulting session. No strings attached.