Bank Balance Accounting

Bank Balance Accounting

Money
While we all know we ‘should’ read our P&L, Cash Flow and Balance Sheets regularly. As well as conduct financial analysis and review our General Ledgers… but the truth is we don’t. We do on the other hand check our bank balance online.
– Parkinson’s Law dictates as deposits increase so does our spending and vice versa. Hence most businesses have extremely volatile financial trends, and rarely have a profit.
– But if you take your profit first, your natural behavior becomes your biggest asset.
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.
Do you practice Bank Balance Accounting?

Recent Posts

Navigating Seasonal Peaks and Valleys: Strategies for Managing Hospitality Business Operations

Navigating Seasonal Peaks and Valleys: Strategies for Managing Hospitality Business Operations

Are you grappling with the rollercoaster ride of seasonal fluctuations in your hospitality business?

Read More
The Importance of Online Reputation Management in the Hospitality Industry

The Importance of Online Reputation Management in the Hospitality Industry

In today's digital age, the hospitality industry thrives on reputation. Wi

Read More
The Impact of Profit First on Long-Term Business Sustainability in Launceston and Beyond

The Impact of Profit First on Long-Term Business Sustainability in Launceston and Beyond

In today's ever-evolving business landscape, achieving long-term sustainability is a goal that every

Read More

Partners

Get the Latest News & Updates

Sign up with your email address to receive news and updates