Profit First Bank Accounts | The 5 Business Bank Accounts You Should Have!

Profit First Bank Accounts | How Many Business Bank Accounts You Should Have

If you have seen any of our previous videos on the Profit First System, then you will know we are Certified Profit First Professionals. Profit First is a book written by Mike Michalowicz. You can see our overview of the Profit First system here:
Profit First Book Summary | Cash Flow Management Strategy for Business:

Today we are talking about the 5 bank accounts you should have for your business and why you need these 5 accounts.

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More videos from Matterhorn Business Development:

Why Bookkeeping is Important for Small Business Owners (You Need to Hear This!):

7 Ways to Measure Business Success | The Business Startup Series Episode 6:
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#Profit #ProfitFirst

[kstevenson]

Thanks! I"m going to watch this whole series!!!

[globalluxurytravel]

Reading Profit First now with a group. This was a good video!

[tylerclark-realtor]

Great video! I just got the profit first book and I’m wanting to structure my business with this concept. I’m a new realtor and it is very important to me to build a strong foundation for my business to grow on. As of now, I am the sole employee in my business, and plan on staying that way for awhile. I am having trouble figuring out how to use this method for my business as I’m not really sure how much I should set aside for certain accounts. Here’s a break down of how I disperse my commission checks. Ex: $3000 commission to income account, 20% into tax account, 10% of remainder in Business expenses account (this includes annual dues, supplies, business marketing. What ever is left over from that I pay myself which is pretty good portion. I then take 10% of owners pay and put it into a personal savings account. What ever is left over I use to pay bills. I hope all that makes since.

20% tax
10% business expenses
10% personal savings
Remainder - bills.

[normalandaverde]

Great video. I really have to implement this to my 2 businesses. Question, how much should I put into my Tax account? And Operation expenses? Thanks

[Darrenaco]

great video, thanks for the break down.

[carlos]

As a self-employed/business owner, What's the difference between Profit Account and Owner's Pay? At the end of the year can you move that Profit Account money into Owner's Pay? Just having too much cash in bank accounts that barely pay any interest makes me double think about these two accounts.

[fionaarthurs]

Thanks for the video. Does this system work for non profit organizations? If so, how does it differ?

[DialloStevens]

Please share what kind if account each should be (business savings/ checking/money market...). I was thinking about regulation d transaction limits and minimum balance requirements to avoid feed. Really glad you are doing these videos.👍👍

[hstang]

I'm with a credit union the has fees for everything. Want to go back to Wells Fargo but monthly fees add up. What do you recommend for accts to avoid monthly fees? Can they be savings accounts?

[Starchild]

Do you think a online bank or pursue a credit union. I’m with chase I asked banker about it he looked at me like he seen a ghost lol.

[jomaralvarado]

Thank you for the breakdown. As a retailer, I am trying to figure out when do I take out for sale taxes and materials/inventory? Would I take out sales tax and inventory from the "total account" before distributing to the profit first accounts because this will indicate my "real income"?

[rondacollins]

Do we open 5 accounts at 5 different banks, or find a "profit first friendly" bank that allows me to open 5 accounts with their bank?

[TheCriticalChris]

10:13 well it really does matter if the bank charges monthly fees for each separate account.

[ItsBrickee]

I am currently in the process of opening my accounts and I was thinking about having the owners pay a traditional checking account. My thought process behind this is its my money and If I were to have it in a business account I would have to take account for everything that was purchased with my “pay”. Please correct me if I am wrong because I do see you mentioned to someone that everything should be an business account.

[pcfradkin]

Is there a product that might be able to help with this? Between kids and work I just don’t see myself having the time to set this up on my own :/

[Starchild]

So if your a one man show should you do a payroll account to pay yourself since the owner pay account you will disperse every 90 days or am I missing something

[keithlithander]

need help on how to arrive at my owners comp percentage i do take a salary and shareholder dist

[malloryartusio]

Quick question: Is that 1% profit transferred out on the 10th and the 25th or is it quarterly/annually?

PS....Abby, it is SO SWEET to see your dad look at you so PROUD and SUPPORTIVE of who you are! (At least that's how it came across on YouTube :) )

[rosselencastellar]

Should someone pull a personal bank account or business bank account to run your business?

[kstevenson]

Let's say you don't have enough money in your profits or expense account. Where do you fund your business and how do you keep track of additional funds? Do you put the money into the Income account? Or directly into the Operating Expenses account? I assume its the income account. But that seems like a lot of unnecessary transfers especially if you need the money in there fast.