Great video! It's also important to note you should be paying yourself a set amount each month. Then if you have a great month, you can collect it in the owner's pay account for when you have a low month and still get paid.
Thanks Amber, Profit First is such a great system altough it does use percentages rather set amounts, but it can most definitely be tweaked to work this way.
thank so much still for the energetic attitude and the packed video ( I mean not boring at all ) and the same for music ann the tips of course. I guess you are australian.Love this country and its people
Really important points well made, but I wish you had used better examples for each bucket. Unless taxes in the land of Oz are really high, 30% tax is way out of line for the income levels of most makers, on the other hand I don't know any businesses where the cost of goods sold plus all other operating expenses are just 28%. I know you said they were just examples, but I think it would have been more helpful for beginners if the examples had been more realistic. Keep up the good work and I love your accent ;)
Great point! I honestly sort of picked numbers while recording and was just happy I did the math right and it added up to 100% haha. But you are absolutely right, 30% tax is a lot. For info, if you scroll down on this article, you'll find a table of the recommended allocations in % for each bucket by Mike (table from the book). Depending on your turnover, you'll find what his guidelines are (after studies on many businesses): blog.waveapps.com/make-a-profit-every-year-with-the-profit-first-formula/
I guess this would really depend on your business structure (+residency/country of course), in my case I am still a sole-trader (that's Australian for sole-proprietor) so my personal and business taxes are one and the same. If you have a business who pays tax and you pay yourself a salary on which you personally pay taxes, I would have one profit first system for the business and one for the personal finances. I actually do that too and it's really helpful for personal finances too :-) Splitting my pay into "food" "fun" "health" accounts, etc.
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Hi Deb,
merci beaucoup👏 I really love and appreciate all your contents! xx
You are so welcome, Pearl! - L
I've sat her & watched over 5 videos...I HAVE SO MUCH HOMEWORK TO DO!!
Thanks for the profitable information!
Thank you Deb, I agree that this is really important and is not spoken about enough. I am so excited to read this book and give it a try!
I am glad you are going to read it! So empowering to get that money stuff under control.
amazing!!! I learnt so much thank you
Glad to hear, Karla! 🙂 - L
Great video! It's also important to note you should be paying yourself a set amount each month. Then if you have a great month, you can collect it in the owner's pay account for when you have a low month and still get paid.
Thanks Amber, Profit First is such a great system altough it does use percentages rather set amounts, but it can most definitely be tweaked to work this way.
I have not read the book yet, but I already am putting this into practice after watching your video! Thank you!
I honestly can't stop talking about how great this book is! Thanks for watching.
thank so much still for the energetic attitude and the packed video ( I mean not boring at all ) and the same for music ann the tips of course. I guess you are australian.Love this country and its people
Thanks Nane, that's very lovely. I appreciate you watching the videos!
Thank you for this video!! Purchasing the book now and can’t wait to read it and learn more!
oh yay! let me know what you think of it!
Excellent advice thank you!! 😁
You are so welcome! Thank you for watching!
Very helpful. Thanks
Thank you for watching, Jennifer!
Bonne information Deb. Je n'avais jamais pensé à une entreprise artisanale de cette façon auparavant. Je vais commencer cette méthode maintenant.
I wonder if the book was translated to French? I hope so!
this is a radically useful idea. Go Deb! until you do this, even on paper, the expenses part will force you into smarter decision making.
Yes, you can only spend what you can spend!
Fantastic video, very helpful information! Thank you!
Thank you for watching! I am glad I could help and I hope you are trying out the Profit First method, it's fantastic!
Hi Deb, this is a very helpful explanation. Just to be clear, with this formula you can not use business credit cards?
Thanks for the info! Can you give us a link to the book?
Of course. Try: profitfirstbook.com/
Really important points well made, but I wish you had used better examples for each bucket. Unless taxes in the land of Oz are really high, 30% tax is way out of line for the income levels of most makers, on the other hand I don't know any businesses where the cost of goods sold plus all other operating expenses are just 28%. I know you said they were just examples, but I think it would have been more helpful for beginners if the examples had been more realistic. Keep up the good work and I love your accent ;)
Great point! I honestly sort of picked numbers while recording and was just happy I did the math right and it added up to 100% haha. But you are absolutely right, 30% tax is a lot. For info, if you scroll down on this article, you'll find a table of the recommended allocations in % for each bucket by Mike (table from the book). Depending on your turnover, you'll find what his guidelines are (after studies on many businesses): blog.waveapps.com/make-a-profit-every-year-with-the-profit-first-formula/
Hi, with regards to tax, what about personal income tax, do you have separate accounts for both business and personal tax?
I guess this would really depend on your business structure (+residency/country of course), in my case I am still a sole-trader (that's Australian for sole-proprietor) so my personal and business taxes are one and the same. If you have a business who pays tax and you pay yourself a salary on which you personally pay taxes, I would have one profit first system for the business and one for the personal finances. I actually do that too and it's really helpful for personal finances too :-) Splitting my pay into "food" "fun" "health" accounts, etc.
but how do you pay yourself if you have no sales?