Money management – Sustainable Income and Profit: 

• Encourages profit over expenses 
• Stay out of debt 
• Pricing for profit 
• Clarity on budgeting 
• Improved cash flow (less feast to famine) 

It is not Sales – Expenses = Profit 

It is Sales – Profits = Expenses (not an overnight solution) 

Ensure profitability, sustain cash flow, increase income and build profits 

6 Bank accounts: 

• Profit: Savings account (5%) 

• Tax and Gst: Savings account (15%) 
• Owners pay: Savings account (50%) 
• Revenue: Transaction account  
• Operating Expenses: Transaction account (30% between this and that) 
• Materials & subcontractors: Transaction account (if applicable) 

These may changes based on: 

• Business structure  
• Current debt  
• GST 
• Tax 

• Current expenses  
• Current revenue 
• Business and financial goals  

If you follow these principles, you will: 

• grow your business and profit 

• pay gst / tax on time 
• reduce debt 
• have money in accounts  

• get paid as owner 

What are operating expenses? 

• Accounting and legal fees 
• Bank charges 
• Sales and marketing costs 
• Travel expenses  
• Entertainment costs 

• Research and development expenses 
• Office supply costs 
• Rent 
• Repair and maintenance costs 
• Utility expenses 

• Software 
• Salary and wage expenses 

Money management mind-blowing Takeaways: 

1. “Always, always allocate money based upon the percentages to the accounts first. Never, ever ever pay bills first…… and if there isn’t enough money left for expenses? This does not mean you pull from other accounts.” 

It means you cant afford it !  

You need to increase profit OR decrease expenses.  

2. “Make it really hard and painful to get to that money, thereby removing temptations”  

How to get started with Profit first? 

• Set up your 5-6 accounts 
• DO your numbers (don’t guess)  

• Get your revenue account and Operating expenses working 
• Then do your allocations on the 10^th and 25^th of every month 

Read or listen to the book, or chat to your bookkeeper about setting it up with you 

View the Tradies Australian version of Profit First here: https://drive.google.com/file/d/1S2Ih8QZd5d1D44atl3rMurlJJU39Z68D/view