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Having A Plan For That “Extra” Money in Your Profit First Accounts

Having A Plan For That “Extra” Money in Your Profit First Accounts

When a client tells me they’re finding “extra” money in their Profit First accounts, I get excited for them, but also a little concerned.

Excited because more money in their accounts usually means their revenue has increased. Business is probably going well.

Concerned because—well, remember when we explained Parkinson’s Law? The demand for something expands to match its supply. It’s a phenomenon of human behavior that proves itself time and time again. As it applies to money, here’s what happens: The more money you have, the more money you will spend.

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When Your Accountant Doesn’t Use Profit First

When Your Accountant Doesn’t Use Profit First

Here’s the thing though: Your accountant doesn’t actually have to be on board with you using Profit First. Because your accountant doesn’t actually balance your books for you and they aren’t creating your profit and loss statement or balance sheet–that’s your bookkeeper’s job.

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Creating Money Systems Beyond Profit First

Creating Money Systems Beyond Profit First

You’ve already got a solid system for cash flow management if you’re using Profit First. And setting target allocation percentages for each of your accounts is part of a system to help you achieve your broader financial goals. What other systems should you create and maintain to keep your money working for you?

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How to Use Your Money for Good

How to Use Your Money for Good

However you decide to give back, it is possible to use your money for good. And that looks different for everyone. No one way is right or wrong, and you can decide how giving back looks for you and your business.

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Set Yourself Up for Success with Profit First

Set Yourself Up for Success with Profit First

So while business owners had to do a fair amount of winging it these past 18 months, next year looks to be more predictable—and hopefully, more profitable. Have you started to plan for financial success in 2022 yet? Profit First is key to this (but you knew we were going to say that).

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When Your Profit Distribution “Isn’t Enough”

When Your Profit Distribution “Isn’t Enough”

One of the best things about using the Profit First system is profit distribution time. Being the owner of the company, you get to take a profit once a quarter and use it as you wish.

But sometimes, we hear from clients that they’re not making enough profit, or that they want (or need) to be able to take more in profits every quarter.

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Managing Quarterly Profits and Taxes

Managing Quarterly Profits and Taxes

Like anything in business, it’s important to talk directly to a tax professional when it comes to determining your tax liability and the business structure that’s best for you, your business, and your goals. It’s important to educate yourself about managing taxes and even reducing your tax liability throughout the year.

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Time for a Mid-Year Goal Review & Revamp

Time for a Mid-Year Goal Review & Revamp

If you’re working to grow your business, you probably have goals that you check in on from time to time. (I hope you have goals you’re checking in on!)

One of two things might happen when you check in on your goals: You discover that you’re on track or ahead of schedule…so you sit back and rest on your laurels. Or you’re so far off from meeting your goals that you want to give up.

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Is Your Personal Account Growing for Retirement?

Is Your Personal Account Growing for Retirement?

I love to analyze numbers. Making projections about how much money this will grow at X% over Z years is just easy for me. But I have to be honest and know I am driving myself crazy over that stuff. If someone asked me what numbers they should track if they could only follow one statistic in their own personal financial life, I would tell them to track their savings rate.

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Why You Must Raise Your Prices

Why You Must Raise Your Prices

The true reason to raise prices is two-fold. It allows you to work with the people that you prefer to work with, and more importantly, you will have more time to think of how to be even more productive without killing the business.

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How to Reduce Taxes Without Reducing Net Profits

How to Reduce Taxes Without Reducing Net Profits

The main thing to remember about the 1040 tax return is that it includes ALL sources on income, and well as all of the available credits and deductions; not just the business stuff. The popular ones are the student interest deduction, charitable contributions, the Child Tax Credit, Earned Income Credit, etc. Reach out to your tax pro to see which credits and deductions you may qualify for.

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How to Talk to Your Clients About Raising Your Prices

How to Talk to Your Clients About Raising Your Prices

First of all, don’t make it sound like you’re breaking bad news. Raising prices is a natural and recurring step in the life of a service-based business. Know your worth. Get confident and comfortable in your own head of the value that your business provides. If you can’t convince yourself that a price increase is warranted, then you won’t be able to sell it to anyone else.

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3 Ways to Minimize Tax Season Stress

3 Ways to Minimize Tax Season Stress

Tax season is around the corner. Getting everything together and filed can be really stressful, especially for business owners; but it doesn’t have to be. You simply need to know what you need and have it ready by the start of the filing season.

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Money and Mindset for the Holidays

Money and Mindset for the Holidays

Also remember that you don’t have to buy gifts for everyone, and you don’t have to spend money to show appreciation. Sometimes just some quality time together is gift enough. Some families draw names so they don’t have to buy gifts for everyone. Others get gifts just for the kids, since the adults can just buy themselves what they want. Here are some other ways to make the most of the money you have.

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Choosing The Right Business Coach

Choosing The Right Business Coach

If you’re looking for a coach to help you improve your business or your finances, you will find no shortage of people out there to choose from. The same goes for life coaching or mindset coaching. Technology has made it possible for us to connect with anyone, anytime, anywhere in service-based relationships—but with coaching, I think you really need to have a personality connection more than anything.

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What You Need to Do NOW to Prepare for Tax Season

What You Need to Do NOW to Prepare for Tax Season

The key to managing your tax taxes is Proactive Tax Planning. This can mean many things to business owners, depending on the size and complexity of your business. But for the sake of keeping things simple and pragmatic, we’ll refer to proactive tax planning as a periodic review of your financials and projected tax liability DURING the tax year. This allows you to forecast your potential tax liability and position yourself to maximize any credits or deductions you may qualify for. This is the best way to make sure you’re paying the least amount in tax that you’re legally obligated to pay. But what does this look like in practice?

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