AMZ Accounting Solutions 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.
Profit First
profit first
transform your business from a cash-eating monster to a money-making machine
Profit First Overview

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.
Sales – Expenses = Profit
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. 
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 for
expenses lessens, and we are forced to find ways to get the same things done for less money.
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.
Many entrepreneurs try to force themselves to become better at accounting and to become more disciplined
in their fiscal management by pure willpower. But just like a muscle, willpower can be drained. And in a
moment of financial stress or bigger than expected expenses the entrepreneur will break their own fiscal
rules and spend the money they have. The Profit First principle does not try to change your habits (that is
nearly impossible to do), Profit First works with your existing habits. By first allocating money to different
accounts, and then removing the temptation to “borrow” from yourself, your business will become fiscally
strong and you will benefit from regular profit distributions.
"Let me tell you what profit first has done for us, at one point early in 2015 our net profit year over year from year to date 2014 versus 2015 was up 1,721.4%. Nope. No typo. I truly am not kidding. We ended 2015 with net profit up 335.3% overall! On top of that , we ran about a 22% net profit percentage!"
- Mike
"I just thought I would take a minute and let you know what Profit First has done so far for me. The mission is by no means over. Heck, I consider this just baby steps. But going into winter with cash in the bank and equipment paid for is a huge win for us. It's not a ton, but it's a great start. So thank you. THANK YOU!"
- Keith
Profit First article in Forbes
Profit First in Small Business Trends
Want to dive deeper into Profit First? Download the first 2 chapters for FREE!
Are You Ready To Grow Your Profits?
As they say, the proof is in the pudding. Schedule your 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 Frequently Asked Questions
Click Below To View Our FAQ's
AMZ Accounting Solutions | Copyright ©2018 | All Rights Reserved