CFO Accounting Services, LLC - BlogCFO Accounting Services, LLC - Bloghttps://www.cfoaccountingservices.com/blogsWed, 22 Apr 2026 01:50:58 -0700http://zoho.com/sites/<![CDATA[Busy Isn’t the Same as Profitable (Especially After Q1)]]>https://www.cfoaccountingservices.com/blogs/post/busy-isn-t-the-same-as-profitable-especially-after-q11  If Q1 felt busy, you’re not alone. A lot of business owners come out of the first few months of the year feeling like they’ve been running nonsto ]]>

 

If Q1 felt busy, you’re not alone.

A lot of business owners come out of the first few months of the year feeling like they’ve been running nonstop. More work. More clients. More activity.

And yet…

The bank account doesn’t feel much different.

That disconnect is frustrating. You’re doing more, but it’s not translating into more money in your pocket.

Let’s talk about why that happens.

Busy Feels Like Progress… But It’s Not Always Profit


It’s easy to assume that if you’re busy, things must be going well.

More sales = more success, right?

Not necessarily.


You can increase revenue and still:

    • Have tighter cash flow
    • Work more hours
    • Feel more stressed
    • Take home the same (or less) money

That’s because revenue and profit are not the same thing!

Where the Money Actually Goes


When your business gets busier, your expenses usually grow with it. Sometimes faster than you realize.

A few common places we see this:

  • Labor creeping up
    Hiring help or adding hours without fully understanding the cost
  • “Small” expenses stacking up
    Subscriptions, software, supplies, meals… they don’t feel big individually
  • Underpriced work
    Saying yes to projects that don’t actually leave room for profit
  • Owner pay getting pushed last
    Everyone else gets paid first, and you take what’s left (if anything)


So even though money is coming in, it’s going right back out.

Growth Can Actually Make This Worse


Here’s the part most people don’t expect.

If your pricing or cost structure isn’t solid, more business can actually make things tighter, not better.

You end up:

    • Doing more work for the same margin
    • Managing more complexity
    • Carrying more financial pressure

That’s when people start saying, “I’m busier than ever, but I don’t feel like I’m getting ahead.”

What to Look At Right Now (After Q1)


You don’t need a full financial deep dive to get clarity. Start with a few simple questions:

    • Did I pay myself what I expected in Q1?
    • Is my bank balance stronger than it was at the start of the year?
    • Which jobs, clients, or services actually made me money?
    • Where did I feel stretched or underpaid?


If those answers feel unclear, that’s your signal. Not that you’re doing something wrong, but that you don’t have visibility yet.

A Simple Shift That Changes Everything


Instead of asking:

“How do I get more work?”


Start asking:

“Is the work I’m doing actually profitable?”

That one shift changes how you:

    • Price your services
    • Choose your clients
    • Make hiring decisions
    • Manage your cash

And it’s usually the difference between staying busy… and actually building something sustainable.

If This Is Hitting Close to Home

You’re not behind. This is a really common place to be after Q1.


But it’s also the best time to adjust. Small changes now are a lot easier than trying to fix things at year-end.

If you want help figuring out what your numbers are actually telling you, that’s exactly what we do.

We’ll walk through it with you in plain English and help you see where your money is really going.


(or join us inside PULSE if you want to start working through it yourself with guidance)


Get Started Now
]]>Tue, 21 Apr 2026 14:37:02 -0500<![CDATA[Spring Cleaning Isn’t Just for Your Office, Your Financials Need It Too!]]>https://www.cfoaccountingservices.com/blogs/post/spring-cleaning-isn-t-just-for-your-office-your-financials-need-it-too1Every March, people start clearing closets, organizing garages, and opening windows.  But most business owners skip the one area that quietly cre ]]>

Every March, people start clearing closets, organizing garages, and opening windows.  But most business owners skip the one area that quietly creates the most stress:

Their financials


You can have a spotless office and still feel behind in your numbers.


Spring is the perfect time to clean up what’s been building since January. Not because you’re in trouble. But because small messes compound.


Here’s what financial spring cleaning actually looks like:


1. Clean Up Your Bookkeeping Backlog


First question:

Are your books current?

Not “mostly caught up.”
Not “I’ll get to it after tax season.” 

Outdated bookkeeping leads to delayed decisions. Delayed decisions lead to cash surprises.


If transactions are sitting uncategorized or reconciliations are weeks behind, fix that first. Clean data is the foundation for everything else.


You can’t improve what you can’t see clearly.

2. Clear Out Expense Clutter


Subscriptions are the junk drawer of most businesses.

Pull a transaction report from the last 90 days and ask:

  • What am I paying for that I forgot about?

  • What tools are overlapping?

  • What software are we not fully using?

  • What expenses crept up without review?


Even trimming a few hundred dollars per month improves margin immediately.

Spring cleaning isn’t about cutting everything. It’s about making sure every dollar has a purpose.

3. Organize Your Revenue Streams


Look at where your revenue actually came from in Q1 (Quarter 1).

  • Are you dependent on one or two clients?

  • Are lower-margin services taking more time?

  • Is recurring revenue stable?

  • Are you pricing based on current costs or last year’s comfort level?


This is where clarity changes decisions.

You may not need more clients.
You may need better alignment between pricing and effort.

4. Dust Off Your Accounts Receivable


Uncollected invoices create artificial stress.

Review:

  • Aging reports

  • Slow-paying clients

  • Invoices over 30 or 60 days

  • Payment terms that are too generous


Cash flow improves faster by tightening collections than by chasing new revenue.

Often, it’s not a sales problem. It’s a follow-through problem.

5. Review Owner Pay


This is the area most people avoid.

Did you pay yourself consistently in Q1?
Or did you “wait and see”?

If you’re skipping owner pay to make everything else work, that’s not a sustainable structure.

Spring is a good time to reset your compensation plan before resentment or burnout builds.

A healthy business supports its owner. It doesn’t run on sacrifice.

6. Revisit Your Profit Strategy


If you follow a Profit First style system or any intentional allocation plan, this is the time to review percentages.

Are you:

  • Overfunding operating expenses?

  • Underfunding taxes?

  • Avoiding profit allocations?

  • Letting one account quietly shrink?

Small adjustments in April affect the rest of the year.

Ignoring it pushes pressure into Q4 (Quarter 4).

7. Reset Your Financial Rhythm


Spring cleaning isn’t just about clearing old mess. It’s about creating better habits.

Decide now:

  • When will you review financials each month?

  • When will you transfer tax and profit allocations?

  • When will you look at cash flow forecasts?

  • When will you evaluate pricing?


If it isn’t scheduled, it doesn’t happen.


Clarity is not accidental. It’s structured.

What Happens When You Don’t Clean It Up?


Financial clutter doesn’t stay neutral.

It turns into:

  • Decision fatigue

  • Avoidance

  • Tight cash months

  • Surprise tax bills

  • Pricing that no longer works

  • Team strain

  • Owner stress

Spring cleaning your financials is not about perfection. It’s about removing friction. And when friction decreases, confidence increases.

The Real Goal


A clean office feels good. Clean financials feel powerful. 

When your books are current, expenses intentional, pricing aligned, and cash predictable, you stop reacting and start leading.

And that’s how the rest of the year becomes intentional instead of accidental.



Get Started Now
]]>Tue, 17 Mar 2026 14:22:42 -0500<![CDATA[What Your January Numbers Are Trying to Tell You]]>https://www.cfoaccountingservices.com/blogs/post/what-your-january-numbers-are-trying-to-tell-you1    January is more than just the first month of the year. It’s the first real data point. And whether your year is off to a stron ]]>

    January is more than just the first month of the year. It’s the first real data point. And whether your year is off to a strong start or already feels stressful, your January numbers are giving you useful information if you know how to listen.

This isn’t about judgment. It’s about clarity.

Here’s what to look at and what each area is quietly telling you.


1. Cash Balance: Are You Breathing Easier or Holding Your Breath?

Start with your bank balance, not revenue.

  • If cash is already tight, that’s a sign expenses may be outpacing reality.

  • If cash feels stable but fragile, it often means timing is the issue, not profitability.

  • If cash is stronger than expected, something is working and it’s worth identifying why.

January cash flow sets the tone. Early pressure usually doesn’t fix itself without intentional changes.


2. Revenue: Consistent, Spiky, or Quiet?

Look at how money actually came in.

  • Consistent revenue suggests systems are working.

  • Big spikes followed by quiet weeks point to feast-or-famine cycles.

  • A slow January isn’t always a problem, but it should be planned for.

The key question isn’t “Is this good or bad?” It’s “Is this predictable?”


3. Expenses: Where Did the Money Go So Fast?

January expenses often reveal habits more than strategy.

  • Recurring subscriptions that didn’t get reviewed

  • Expenses that crept up quietly

  • Costs that no longer match how the business actually operates

If expenses feel higher than expected, that’s a signal to pause and reassess before they lock in for the year.


4. Profit: Did the Business Actually Keep Anything?

Profit on paper matters, but context matters more.

  • If profit is there but cash is missing, timing and structure are the issue.

  • If profit is thin, expenses or pricing may need attention.

  • If profit looks strong, that’s an opportunity to protect it intentionally.

January profit is a preview, not a verdict.


5. Owner Pay: Did You Pay Yourself Consistently?

This is one of the most overlooked indicators.

  • Paying yourself inconsistently often means the business is driving your stress.

  • Skipping pay is usually a sign the business isn’t structured around sustainability.

  • Even small, consistent pay is a positive signal.

If the business can’t support the owner, something needs to change early.


6. Accounts Receivable: Who Owes You Money?

Outstanding invoices in January tell a story about systems and boundaries.

  • Slow collections point to follow-up gaps.

  • Old balances suggest policies need tightening.

  • Clean receivables indicate strong processes.

Cash flow problems often live here, not in sales.


What January Is Really Saying

January doesn’t predict the entire year. But it does highlight:

  • Where stress will show up first

  • Which systems need attention

  • What habits are already forming

  • Whether your goals align with your financial reality

The earlier you listen, the easier it is to course-correct.


The Next Step

If January raised questions or confirmed concerns, now is the time to act. February is early enough to make changes that actually stick, without panic or cleanup mode later in the year.


Clarity now saves stress later.


Get Started Now
]]>Mon, 23 Feb 2026 10:22:47 -0600<![CDATA[How to Start a Simple January Budget (Using Profit First Principles)]]>https://www.cfoaccountingservices.com/blogs/post/how-to-start-a-simple-january-budget-using-profit-first-principles1January always feels like a great reset. New year, new goals, and a new opportunity to tell your money what to do instead of wondering where it went. ]]>

January always feels like a great reset. New year, new goals, and a new opportunity to tell your money what to do instead of wondering where it went. If you’ve thought about budgeting before but never found a system you could stick with, Profit First is a great place to start.

 

It’s not a traditional budget. It flips the traditional “sales – expenses = profit” equation to "Sales-Profit=Expenses" Profit comes first. It makes sure owners get paid, taxes are covered by the company and expenses are covered by what’s left. And the best part is that it works whether you’re a brand-new solopreneur or a growing small business.

 

Here’s a simple way to use January as your launch point:

 

1. Start with what you really earned last year

It’s not a traditional budget. It flips the traditional “sales – expenses = profit” equation to "Sales-Profit=Expenses" Profit comes first. It makes sure owners get paid, taxes are covered by the company and expenses are covered by what’s left. And the best part is that it works whether you’re a brand-new solopreneur or a growing small business.

 

Here’s a simple way to use January as your launch point:

 

1. Start with what you really brought in last year

 

Before you set any numbers for the new year, look back. Look at your total revenue for 2025. Don't over complicate it. You’re just trying to understand your baseline so you can set realistic percentages.

 

Then ask yourself:

 

  • Did the money coming in feel steady or unpredictable?
  • Were there months you felt stressed?
  • Did you pay yourself consistently?

 

Profit First is easier to implement when you know the real state of your cash flow, not the ideal version.

 

2. Set your January Profit First percentages

If you already use Profit First, this is a good time to review your targets. If you’re new to it, start with simple buckets:


  • Income - all revenue

  • Profit - start with 1%

  • Owner’s Pay - set aside what you are paying yourself in payroll or figure out what your household needs to run

  • Taxes - 15% is your ultimate target. If that's unrealistic, start with 5-10%
  • Operating Expenses - this is what's left over

You don’t need perfect numbers on day one. Start with rough percentages that match what your business can handle. Even 1 percent to profit is better than zero. January is about building the habit.

 

3. Do your first allocations on January 16

Starting out, most people will do the allocations weekly. On the allocation days, whatever money is in your income account gets split into the percentages you set earlier.


This is where the magic happens. Instead of guessing how much you can spend, you have a clear boundary. You’ll see right away if your operating expenses are too high or if you’ve been underpaying yourself.

 

 

 

4. Look at what your bank balances tell you. This is about reality, not what you wish they were

Profit First brings reality to the surface quickly. If your operating expenses bucket feels too empty, that’s not a failure. It’s information.


Ask:

  • Do I need to adjust pricing?
  • Can I cut subscriptions or tools I’m not using?
  • Is my team time aligned with what actually earns revenue?

Your January budget becomes a tool, not a punishment.

 

5. Plan one change for February

Don’t overhaul everything at once. Pick one improvement you want to make based on January’s numbers. These small tweaks add up fast.

For example:

  • Increase profit from 1% to 2%
  • Trim one recurring expense
  • Add a percentage to Owner’s Pay
  • Create a basic cash flow forecast to support your Profit First setup

 

6. Give yourself credit for actually starting

Most business owners wait for the “right” time. But budgeting is just a series of small decisions. Starting in January puts you ahead of most people. Profit First isn’t about being perfect. It’s about building a system that supports the life and business you want.


If you want extra help setting this up, running your numbers, or building a cash flow plan around your Profit First goals, our team can guide you through it.


Get Started Now
]]>Mon, 12 Jan 2026 11:32:24 -0600<![CDATA[Your Year-End Financial Checklist: A Simple Guide for Small Business Owners]]>https://www.cfoaccountingservices.com/blogs/post/your-year-end-financial-checklist-a-simple-guide-for-small-business-owners1The end of the year isn’t only about holiday parties and peppermint mochas. It’s also that moment when most of us pause and say, “Alright, how did thi ]]>

The end of the year isn’t only about holiday parties and peppermint mochas. It’s also that moment when most of us pause and say, “Alright, how did things go this year?” If you want to walk into 2026 feeling motivated and confident, here are a few things worth checking off your list.

1. Reconcile every account.

Anything that is about money counts. Bank accounts, credit cards, PayPal, Stripe, loan balances — pull your December 31 statements and make sure everything is reconciled. Starting the year clean makes everything else easier.

2. Review your Profit & Loss and Balance Sheet.

Scroll through and see what jumps out. Weird balances, missing expenses, categories you don’t even remember creating — those are the things to clean up now, not in the middle of tax season.

3. Update your assets and depreciation.

If you bought equipment or a vehicle this year, get it recorded. It affects both your books and what your tax professional needs from you.

4. Verify payroll and contractor info.

Review employee details and make sure you’ve collected W-9s from all contractors. If you’re doing bonuses or owner draws, review those too. And skip giving employees holiday bonuses in cash. If you want it treated as a deductible business expense, it has to be added to their W-2.

5. Review your Profit First percentages.

If you use Profit First, take a minute to see if those percentages still fit your goals. Sometimes a small adjustment makes a noticeable difference in the new year.

6. Set your 2026 budget or forecast.

Look at your 2025 actual numbers and map out what you expect for next year. Even a simple plan for revenue, expenses, and cash flow puts you way ahead.

7. Reflect and celebrate.

Running a business for another year is no small thing. Take some time to reflect on what worked, what didn’t, and what you want more of going forward. And take a minute to celebrate positive momentum forward no matter how small it seems.


If any of this feels overwhelming and confusing, you don’t have to work through it alone. At CFO Accounting Services, we help business owners close out the year, get their books cleaned up, and head into the new year with a whole lot more clarity.

Let’s finish your year strong.

Get Started Now
]]>Fri, 05 Dec 2025 12:55:20 -0600<![CDATA[What Your Bookkeeper Wishes You’d Do Before December 31]]>https://www.cfoaccountingservices.com/blogs/post/what-your-bookkeeper-wishes-you-d-do-before-december-3111. Stop the “shoebox” system. You know the one - the pile of receipts in your glove box, purse, or inbox. Start uploading receipts as you go, or use an ]]>

1. Stop the “shoebox” system.

You know the one - the pile of receipts in your glove box, purse, or inbox.
Start uploading receipts as you go, or use an app like Hubdoc or Zoho Expense to save them right away.
It saves hours of detective work later (and might even save you from missing deductible expenses).


2. Reconcile before you relax.

Don’t wait until January to start reconciling your bank and credit card accounts.
If you stay current through November, December becomes a quick wrap-up instead of a full-on scramble.
Plus, you’ll spot any missing transactions or duplicates while they’re still easy to fix.


3. Confirm your vendor and customer info.

Make sure all addresses, W-9s, and 1099-eligible vendors are up to date.

It’s a small step now that saves big headaches later when you’re trying to meet tax deadlines.


4. Clean up those “Ask My Accountant” mysteries.

We all have them - that expense you swore you’d remember later.
Go through your transactions now while the details are still fresh.
Future-you (and your bookkeeper) will thank you.


5. Get payroll details right.

Double-check that all employee information is correct and bonuses are documented properly.
If you pay yourself, make sure owner draws and distributions are recorded in the right accounts.


6. Review your Profit First allocations.

If you use Profit First, review your accounts before your Q4 distribution.
This is a great time to celebrate progress, but also to make small adjustments before the new year.


Taking care of these now means you can actually enjoy your holidays - instead of spending January trying to piece together what happened back in September.


Seem overwhelming?
CFO Accounting Services can help you close out your books with confidence and start 2026 on the right foot.


Get Started Now
]]>Fri, 07 Nov 2025 14:41:46 -0600<![CDATA[Introducing PULSE: A Community for Small Business Owners to Thrive]]>https://www.cfoaccountingservices.com/blogs/post/introducing-pulse-a-community-for-small-business-owners-to-thrive1Running a business can feel lonely. When you’re wearing every hat - from sales and marketing to bookkeeping and customer service - it’s easy to get st ]]>


Running a business can feel lonely. When you’re wearing every hat - from sales and marketing to bookkeeping and customer service - it’s easy to get stuck in the weeds and wonder if you’re doing it right. That’s exactly why we created

PULSE (Promoting Understanding, Leadership, Support & Empowerment)


Why PULSE?

PULSE was designed for new small business owners and solopreneurs who aren’t ready to hire a bookkeeper but know they can’t afford to let their finances slide. It’s a place to get the education, tools, and accountability you need to keep your books up to date, without going it alone.


What PULSE Offers

  • Weekly Q&A Sessions – Bring your bookkeeping and small business questions and get real answers from experts who understand small business challenges.
  • Monthly Work Sessions – Dedicated two-hour blocks where we all sit down and “do the books” together. Think of it as study hall for your business finances; focused, supportive, and productive.
  • Resource Library – Access templates, guides, and checklists built to make bookkeeping less intimidating and more effective.
  • Community Support – Connect with other business owners who are in the same stage of the journey. Share wins, ask questions, and know you’re not alone.

Who It’s For

If you’re just starting out, wearing all the hats, or trying to stretch every dollar, PULSE is built for you. Our goal is to give you the tools and confidence to manage your finances now, so that when your business grows, you’re already set up for success.


Why It Matters

Most businesses don’t fail because they lacked a great product or service. They fail because they didn’t know where their money was going. With PULSE, you’ll have clarity, accountability, and support so you can focus on growing your business while keeping your finances in order.

👉 Ready to join a community that has your back? Learn more at https://pulse-signup.cfoaccountingservices.com/.


Get Started Now
]]>Sun, 12 Oct 2025 11:47:23 -0500<![CDATA[Profit First: Wrapping It All Together for Your Business]]>https://www.cfoaccountingservices.com/blogs/post/profit-first-wrapping-it-all-together-for-your-business1Over the past few months, we’ve walked through the key principles of Profit First. We've discussed why it works, how to implement it, and what it mean ]]>


Over the past few months, we’ve walked through the key principles of Profit First. We've discussed why it works, how to implement it, and what it means for your business’s cash flow. Now it’s time to tie it all together.

The Big Picture

Profit First is a mindset shift. It's a behaviorally based system. It protects you from yourself.  When you commit to paying yourself first, you’re prioritizing you, your family, your future and the health of your business. You’re telling your business that profit is a core goal, not an afterthought.

When implemented consistently, Profit First helps you:

    •        Stay disciplined with spending, because the money for profit, taxes, and owner’s pay is already out of reach.
    •        Build confidence knowing you have reserves set aside.
    •        Make better decisions because you have a clear picture of your true spendable cash.

Common Wins (and Roadblocks)

Clients who adopt Profit First often tell us they feel relief almost immediately. Seeing profit accumulate, even in a small percentage, brings peace of mind. But some hit snags along the way:

    • Cash feels tight at first: That’s normal. You’re learning to run leaner.
    • Percentages need tweaking: Your allocations aren’t set in stone. They adjust as you gain clarity on your numbers
    • Consistency is key: The biggest results come when you stick with it every month, even when business gets busy.

Your Next Steps

If you’ve followed our series and you’re ready to start, here’s how to move forward:

    1. Open your accounts (Profit, Owner’s Pay, Tax, Operating Expenses).
    2. Decide on starting percentages - even 1% profit is a win.
    3. Schedule regular allocations - weekly, biweekly or monthly, whatever works for you.
    4. Review and adjust quarterly to keep improving your percentages.

Need help? This is where we come in. Our team works with businesses like yours to set up Profit First the right way, track progress, and fine-tune allocations as your business grows.

Final Word

Profit First isn’t about perfection, it’s about progress. Every step you take toward prioritizing profit gives you more control, more clarity, and more freedom.

If you’re ready to put Profit First into action, book a clarity call with our team and let’s make sure your business is set up to thrive.

 


Get Started Now
]]>Tue, 23 Sep 2025 10:37:39 -0500<![CDATA[Profit First Series: Step Two – Choose the Right Percentages for Your Business]]>https://www.cfoaccountingservices.com/blogs/post/profit-first-series-step-two-–-choose-the-right-percentages-for-your-business1]]>

📊 Finding Your Starting Percentages


Now that your Profit First bank accounts are set up (go you 🙌), it’s time to answer the next big question: How much should you move into each account?

There’s no one-size-fits-all answer—your percentages should reflect your current reality and your goals. But don’t overthink it. The key is to start intentionally.

🔢 The Core Allocation Percentages

Here’s a general guide to get you thinking:

  • Profit: 5–10%
  • Owner’s Pay: 30–50%
  • Taxes: 15%
  • Operating Expenses: Whatever’s left

Your percentages will depend on things like revenue, industry, debt, and how lean your operations are. The important part? Start with something. Track how it feels. Adjust over time.

👀 Tip: If your OpEx account feels tight right away, that’s not a failure. It’s feedback. Most businesses are overspending without realizing it. This system shines a light on that.

📅 How to Apply It

Twice a month (or weekly), take the balance from your Income account and divvy it up into the other four using your percentages. Over time, these numbers will guide better decisions—and fewer surprises.


🛠 Need Help Getting the Numbers Right?

If you’re not sure where to start, we can help. At CFO Accounting Services, we help small business owners build their custom Profit Plan based on actual cash flow, not guesswork.


🎯 What to Do This Week

  • Pick your starting percentages—don't worry about perfection.
  • Make your first allocation from your Income account into the other four.
  • Watch how it feels, and write down any pressure points.

📞 Next Up: How to Handle Debt in the Profit First System

Debt is part of many small business stories. In our next post, we’ll walk through how to pay it down while still staying profitable.

Need support now? As Iowa’s only Profit First Mastery Certified firm, we’re here to help. Reach out—we’d love to walk the path with you.


Get Started Now
]]>Mon, 07 Jul 2025 13:56:43 -0500<![CDATA[Profit First Series: Step One – Set Up Your Bank Accounts for Success]]>https://www.cfoaccountingservices.com/blogs/post/profit-first-series-step-one-–-set-up-your-bank-accounts-for-success1Now that you’ve been introduced to the Profit First method, you might be wondering— what’s the actual first step? It starts with your bank accounts. To ]]>

📂 Profit First in Action: Where to Begin

Now that you’ve been introduced to the Profit First method, you might be wondering—what’s the actual first step?

It starts with your bank accounts.

To make Profit First work, you need to separate your money into specific buckets. This isn’t just a theory—it’s a physical change in how you manage your business funds. When your money is clearly divided by purpose, you’re more likely to use it intentionally.

🏦 The Five Foundational Profit First Accounts

Start with these five:

  1. Income – This is your main deposit account. All revenue lands here first.
  2. Profit – A set percentage goes here first—your reward for owning the business.
  3. Owner’s Pay – Your salary as the owner. You work hard; this account ensures you get paid.
  4. Taxes – Set aside a percentage here so tax season doesn’t sneak up on you.
  5. Operating Expenses – What’s left after you’ve allocated profit, pay, and taxes. This is what you actually have to run the business.

Optional, but helpful accounts:

  • Vault Account: For long-term savings or emergency reserves.
  • Payroll Account: If you have employees or contractors.
  • Materials/COGS Account: If you’re in a product-based or project-heavy business.

🔁 How It Works

Twice a month (or weekly, if you prefer), you’ll transfer funds from the Income account into the other accounts based on set percentages. These percentages are custom to your business—and we’ll cover that in the next post.

It might feel clunky at first, especially if you’re used to a single bank account doing all the work. But give it time. The clarity and control it brings is worth the initial adjustment.

📝 What to Do This Week

  • Open your five foundational accounts at your business bank.
  • Label them clearly and set them up for online transfers.
  • Don’t worry about perfect percentages just yet—we’ll tackle that next.
  • Want help setting this up? We are the only Profit First Mastery Certified accounting company in Iowa! We can walk you through it.

📞 Next Up: Choosing Your Profit First Percentages

In our next post, we’ll break down how to decide on the right percentages for your business. Every business is different—your numbers should reflect your reality and your goals.

Until then, if you’re ready to get these accounts set up and running with expert support, reach out to us at CFO Accounting Services. Let’s start making your business work for you.

Get Started Now
]]>Tue, 03 Jun 2025 11:49:27 -0500