Overhead image of a financial planning setup on a wooden desk, featuring a clipboard with a sales bar graph and expenses pie chart, a black calculator displaying “30,000,” and a fan of U.S. twenty-dollar bills, visually representing the concept of Sales – Profit = Expenses.

Profit First: The Simple Shift That Can Transform Your Business Finances

Tax Planning/Preparation
July 09, 2025•1 min read

Most business owners follow the same worn-out formula:

  • Sales – Expenses = Profit

It sounds logical—but in reality, this approach puts your profit last. You pay everyone else first, then hope something is left for yourself. Usually, there isn’t.

The Profit First method flips this thinking on its head. It’s not complicated, but it is powerful.

Flat lay image of a wooden desk displaying financial elements, including a bar graph on a clipboard representing increasing sales, a black calculator showing “80,000,” a pie chart with a dollar sign illustrating profit, and a stack of twenty-dollar bills, symbolizing the concept of Sales – Expenses = Profit.

Flip the Formula to Win:

Instead of hoping for leftovers, you build your business around intentional profit:

  • Sales – Profit = Expenses

That means you decide how much profit you want to keep—before you start spending.

It’s not about denying yourself tools or growth—it's about creating discipline and structure.

Flat lay image of a financial planning setup on a wooden surface, featuring a clipboard with bar graphs representing sales and profit, a black calculator displaying “30,000,” a pie chart symbolizing expenses, and neatly fanned U.S. twenty-dollar bills, visually illustrating the concept of Sales – Profit = Expenses.

Here’s How to Start:

  • Open 4 Business Bank Accounts

  • Profit

  • Owner’s Pay

  • Taxes

  • Operating Expenses

Set Simple Percentages for Each. Example:

  • 5% Profit

  • 15% Taxes

  • 30% Owner’s Pay

  • 50% Expenses

  • Stick to Your Limits

Spend only from your Operating Expenses account. If it’s low, that’s your real budget—not your entire income.

Why This System Works:

  • You always take a profit (even if it’s small).

  • Taxes won’t sneak up on you anymore.

  • You get paid like a real CEO—not just when there's “extra.”

  • You naturally spend smarter, because the limits are clear.

What Happens If You Don’t?

Let’s be honest. You’ll keep wondering where the money went. Tax season will always be a stress fest. Burnout will sneak in because you’re not getting paid enough for the work you’re doing.

Final Thought

You don’t need to earn more to feel more in control—you need a better way to manage what’s coming in. Profit First isn’t about perfection. It’s about progress, structure, and finally putting yourself on the priority list. Try starting with just 1% profit. You won’t even miss it—until you see it growing.

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