Profit First

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Netbooks Accounting Services is Your Profit First Professional!

Netbooks utilizes the Profit First method of cash management. Our team is trained and certified by the Profit First Professionals organization to guide business owners and entrepreneurs in maximizing their profits.

Any accountant can reconcile your books. But how many accountants will also drive profitability in your business? That’s what we do. We are a Profit First certified firm.

NetBooks is one of the select few, nationwide, that have received a certification in Profit First.

Give us a call (or drop us an email) for a profitability assessment and profit strategy guide. This service is completely free and by the end of our discussion you will be well equipped to boost your profits (fast).

Is your accountant stuck in the old way ...

Is your accountant stuck in the old way of just doing the books and filling out your tax forms?  Then we would love to show you what modern accountants do… they help you drive profitability.
What does this mean for you? We will guide you with the methods to greatly increase the profitability of your business.  Of course, we will manage your accounting and help you with your books – but any accountant can do that.  We also provide the most important financial factor – maximizing your profits.

Give us a call (or send us an email) for a free consulting session. No strings attached.

As they say, the proof is in the pudding. Email (or call) us for a free profit maximizer session.  We’ll assess where you stand now, and give you actions that you can immediately use to grow your profits.  The service is completely free! Why? Because we are confident you will be so impressed by what we can do for you, you will want to work with us going forward.

PROFIT FIRST OVERVIEW

THE PROFIT FIRST FORMULA

The GAAP (Generally Accepted Accounting Principles) formula for determining a business’s Profit is Sales – Expenses = Profit. It is simple, logical and clear. Unfortunately, it’s a lie. The formula, while logically accurate, does not account for human behavior. In the GAAP formula Profit is a left over, a final consideration, something that is hopefully a nice surprise at the end of the year. Alas, the profit is rarely there and the business continues on its check to check survival.

Traditional Method: Sales – Expenses = Profit             Profit First Method: Sales – Profit = Expenses

With Profit First you to flip the formula to Sales – Profit = Expenses. Logically the math is the same, but from the stand point of the entrepreneur’s behavior it is radically different. With Profit First, you take a predetermined percentage of profit from every sale first, and only the remainder is available for expenses.

PARKINSON’S LAW

Author and historian C. Northcote Parkinson theorized that our demand for a resource increases to meet the supply of it. That is why when we are given two weeks to do a project it takes two weeks, and when we are given eight weeks to do the same project it takes eight weeks. That is why when given $1,000 to complete our work we get it done with $1,000 and when given $10,000 to complete the same work, it takes $10,000. Profit First makes Parkinson’s Law an asset. By taking profit first the money available forexpenses lessens, and we are forced to find ways to get the same things done for less money.

BANK BALANCE ACCOUNTING

Most entrepreneurs don’t have the time or gumption to read the different accounting statements necessary to manage the financial aspect of their business. Theoretically you should review and correlate your Income Statement, Balance Sheet and Cash Flow Statement monthly (or more frequently), but few entrepreneurs do. Most resort to “bank balance accounting,” where we check our bank balance every day and make financial decisions based upon what we see. Per Parkinson’s Law, we consume what we see in our bank account. Profit First encourages the entrepreneur to continue “bank balance accounting” by first allocating money to Profit (and other accounts) so that the entrepreneur sees the actual portion of deposits that are available for expenses and they automatically adjust their spending accordingly.

 

Call or email the Profit First Professionals at Netbooks Accounting Services to schedule a no-obligation call, presentation, or a free consultation. If you’d like more information first, browse the FAQ’s or submit a question via our online contact form.

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