function initPage(){ }

A Guide for Web Designers with ADHD, Using the Profit First System

profit first breakdown

I’ve recently joined Novo Banking and I have to say that combining Banking with Profit First was a genius idea! If you are a small business owner and really like the profit first system for your finances, you can skip all the overwhelming idea of setting up different accounts and just to straight to Novo Banking as they have it all set up for you. It’s really fun to watch money allocate itself into different account without having to do any of that manually.

What is Profit First?

First let me back up and explain, what is Profit First and why I recommend it for small business like us, specially if you are a web designer with ADHD. The Profit First system, developed by Mike Michalowicz, is a simple and effective way to manage your business finances. It flips the traditional accounting formula of Sales – Expenses = Profit, and instead focuses on Profit – Expenses = Sales. This shift in mindset can have a profound impact on your business’s financial health.

Profit First and ADHD

For someone with ADHD, the Profit First system offers several benefits. Starting with a clear and structured framework for managing your finances. By allocating your income into different accounts, such as Profit, Owner’s Pay, Taxes, and Operating Expenses, you create a visual separation that helps you stay organized and avoid impulsive spending.

The Profit First system encourages regular profit distributions. As a web designer who may struggle with delayed gratification, this aspect is particularly appealing. Knowing that I can regularly reward myself with profit distributions motivates me to stay focused and work towards increasing my business’s profitability.

Applying profit first method however is quite overwhelming as you would need to set up multiple accounts. In addition to splitting each of your earnings into those multiple accounts. That’s where Novo Banking is the perfect partner, because they do all of the implementation work for you. Their seamless integration of banking services with Profit First eliminates the need for complicated backend setup. With Novo Banking, you can focus on your business while they handle the financial infrastructure.

As a web designer with ADHD, managing finances for my small business has always been a challenge. I’ve learned that, when I struggle with something, that just means I need a better tool or system to help me achieve my goal.

The Profit First system paired with Novo Banking has been the right combination for me. It provides the structure and discipline I need to effectively manage my finances. I can now focus on my business while they handle the financial infrastructure, making my life so much easier.

Why Novo Banking for Small Business?

Since I started using Novo Banking and the Profit First method, my financial management has improved significantly. Or should I say, there actually is a financial management? I have more clarity and control over my finances, allowing me to make better decisions for my business’s growth. Novo Banking’s user-friendly interface and intuitive features have made the entire process seamless and enjoyable.

As a small business owner, finding the right financial tools and platforms to support your business operations is crucial. Novo Banking is one such platform that offers seamless integration with Square and Shopify, providing significant benefits for small business owners.

Integrating Novo Banking with Square and Shopify allows for a streamlined and efficient financial management process. Here’s how it can benefit small business owners:

  1. Seamless Transactions: With this integration, transactions made through Square and Shopify are automatically synced with your Novo Banking account. This eliminates the need for manual reconciliation and ensures accurate and up-to-date financial records.
  2. Real-Time Reporting: there’s real-time transaction data from Square and Shopify, allowing small business owners to access comprehensive financial reports at any time. This enables better visibility into sales, revenue, and expenses, empowering informed decision-making.
  3. Simplified Accounting: Integrating Novo Banking with Square and Shopify simplifies accounting processes. Transaction data flows seamlessly into Novo Banking, reducing the time and effort required for manual data entry. This integration also helps maintain accurate records for tax purposes, making tax season less stressful.
  4. Expense Tracking: it is easier to track and categorize expenses as it automatically captures transaction details. Ensuring that all expenses are accounted for and properly categorized, providing a clear overview of your business’s financial health.
  5. Time Savings: automating financial processes and eliminating manual data entry, you can focus more on growing your business and serving your customers.

I’m recommending this integration to all my clients, as Novo Banking with Square and Shopify offers small business owners a range of benefits, including streamlined transactions, real-time reporting, simplified accounting, expense tracking, financial insights, and time savings. By leveraging these integrations, you can effectively manage your finances, make informed decisions, and drive the success of your business.

Breaking Down Profit First Percentages

Novo Banking calls different accounts “Reserve” to allocate my income based on the Profit First methodology. Here’s how I break down the percentages:

profit first system
  1. 10% – Community Donation: Giving back to the community is an important value for me. By allocating 10% of my income to a Community Donation account, I can support causes and organizations that align with my business’s mission and values.
  2. 30% – Operating Expenses: Allocating 30% of my income to an Expenses account ensures that I have enough funds to cover operational costs, supplies, marketing, and other necessary expenses. Webdesign business doesn’t carry a lot of overhead costs.
  3. 30% – Taxes: Setting aside 30% of my income in a Taxes account helps me stay prepared for tax obligations. By proactively saving for taxes, I can avoid any last-minute financial stress and ensure that I meet my tax responsibilities without any difficulties.
  4. 20% – Owner’s Compensation: As a business owner, it’s essential to pay myself a fair and consistent salary. By allocating 20% of my income to an Owner’s Compensation account, I feel good about paying myself back for my hard work.
  5. 10% – Profit: The ultimate goal of the Profit First system is to prioritize profit. By allocating 10% of my income to a Profit account, I create a financial buffer and reward myself for the hard work and success of my business. I usually use this reserve to invest in more education for myself.

Breaking down my income into these specific percentages and allocating them to different accounts provides clarity and visibility into my business’s financial health, specially as I am a very visual person.

Implementing this breakdown within my bank is seamless. Novo Banking user-friendly interface and intuitive features make it easy to set up and manage these Reserve accounts, ensuring a smooth and efficient financial management process.

By embracing the Profit First system and leveraging Novo Banking, I have gained control over my business’s finances and set a solid foundation for its success. I encourage fellow small business owners to consider breaking down their income to percentages that make sense for them at their current business journey.

Remember, the Profit First system is not just about managing finances; it’s about transforming your business’s profitability. If you’re a small business owner looking for a comprehensive financial solution that seamlessly integrates with Square and Shopify, and follows the Profit First System, I highly recommend Novo Banking.

What other digital banking have you found that helps you manage your finances with Profit First?

Leave a Reply

© 2022-2024, PIPERMACHE website studio llc.
 all rights reserved

 privacy policy

 | cookie policy