📊 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.
