MONEY MAKER MYTH #009 – IF I JUST SET ASIDE HOW MUCH OF MY MONEY IS ALLOCATED TO TAX AND PROFIT IN A SPREADSHEET, THEN I’LL KNOW NOT TO SPEND IT, AND IT WILL BE THERE WHEN I NEED TO PAY MY TAX BILL AND DISTRIBUTE MY PROFIT, I DON’T NEED TO OPEN ALL TH
The question I ask when I hear this is – has that worked for you in the past??!
Are you already tracking your cash flow every day on a spreadsheet?
Are you checking your accounting system daily, reviewing the numbers?
So setting this system I teach in your accounting system is only a very small modification over something you are supposed to be doing already, but are not…
No matter what those spreadsheets or monthly reports say, your current bank balance is always going to be a stronger determinant of your behaviour.
By setting up separate bank accounts (for Profit, Owner’s Pay and Tax as a minimum) you cannot miss your allocations when you log into your online banking.
To change the outcome you NEED to change your behaviour and develop the HABIT of taking your profit first.
Thanks ever so much for taking the time to read my post I truly hope you’ve found it useful and insightful. If you have any questions feel free to contact us!
I am Annette Ferguson, CEO of Annette & Co. Chartered Accountant, Profit First Professional and creator of the Business Wealth Engine. We’re also SUPER social so don’t forget to follow. Here’s to your success!