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Tip Of The Day #33 - Put Profits Out Of Your Reach

Barbara Steckly

Barbara Steckly

business bookkeepers edmonton sherwood park alberta

Put Profits Out of Your Reach

Day after day you do your best out there toiling away in the front line trenches of the business battlefield. Dedicated, diligent, determined, you lead the troupes to victory time and time again.

You’ve done your part. So When do you get to take home those spoils of war? I am talking about your precious Profits!

Let’s face it.  All work and no reward can make for a very dull day.

In his innovative book, “Profit First”, Michael Michalowicz suggests that the traditional accounting formula of sales – expenses = profit is not just ineffective but completely discouraging because no matter how much you sell, you just don’t see enough monetary gain in the end for yourself. According to this successful entrepreneur, there’s no reason you can’t turn the equation around and take off your profits first without compromising your business. In fact, says Michalowicz, “The Profit First Formula" of sales – profit = expenses, actually forces innovation, and supports sustained growth.

In an excerpt from the book Michael advises to start by putting away a small amount of money each month representing your potential revenue gain. Make sure it’s in a separate bank account in a different bank so should the temptation arise, you have no access to electronically transfer the money.  You will be surprised at how well this works.  Increase this a small amount each month until you are saving the profit your company should make, the profits you would like your company to make.

Imagine the thrill of discovering at the end of the year that you’ve saved 20% of your total revenue. Trust me, this inventive approach to financial accounting will revolutionize the way you run your business onward and upward!

Preferred Client Services, professional bookkeepers in Edmonton, AB working as business partners to make a positive difference in your bottom line!

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