Creating an Annual Financial Action Plan
October 11, 2022
by Shannon Simmons

If you’re like most of our clients, you’re taking some time in Q4 to look at your financials and set goals for the coming year. Financial fitness doesn’t happen overnight and you can’t think your way into a healthy place. It takes action. And small business financial management is essential to your long-term survival.

So what needs to happen to create a financial plan for your small business? It’s about knowing what you need to do, when you need to do it, and having the accountability to make sure it happens.

Because, as a busy business owner, you know that making it happen is a big part of the battle.

Daily or Weekly

Spending a little bit of time reviewing your bank account will save a lot of time down the road. The more cash flow happening, the more often you’ll want to check in on your receipts and review your account balances. No need to spend more than a few minutes on this each day or week.

Twice a Month

On the 10th and 25th of each month (or the cadence you and your financial coach decide on), transfer the funds you’ve accumulated in your Income account to your other accounts (Profit, Owner’s Pay, Taxes, OPEX, and any Advanced Accounts you might have).

Once you’ve done that, send all the funds in your Taxes account and Profit Account to the corresponding accounts you have set up at another bank. Moving these funds from your main bank helps you keep your hands off of them!

During allocation time, you’ll also want to disburse salaries for yourself and your team and pay any bills due from your OPEX account.


Your quarterly action steps are some of the most fun. Each quarter, you get to take 50% of the money that’s accumulated in your Profit account as a profit distribution. This is money that’s for you, the business owner. You’ve earned it!

This is also the time to meet with your financial coach to adjust your allocation percentages. Is your OPEX allocation in line with your spending? Do you need to review your expenses? Are you paying yourself enough? Too much? Your financial coach can help you run the numbers and make little adjustments to your percentages so it’s more in line with where you need or want to be.


Every year, take some time to celebrate! Even if the year didn’t go exactly as planned, if you took action regularly to bring financial fitness to your business.

Celebrate that you allocated funds to each Profit First account twice a month, that you reviewed your financials every month, and that you reviewed your finances and allocation percentages every quarter.

Of course, you also have other yearly tasks to take care of, like taxes and reviewing your P&L and balance sheet. We recommend doing that with your Profit First Professional and your tax accountant.

Having a financial plan for your small business isn’t about detailed spending or savings. Small business financial management shouldn’t feel like work! With Profit First, it can be about having regularly scheduled dates with yourself and your financial advisor to ensure you’re taking the little steps you need to take, all year long.

That’s what will make the money side of your business feel a lot less stressful…and a lot more fun!

For more on creating an annual financial action plan and implementing Profit First in your business, download your free Profit First Overview today!