Four-Part Series with Accountant Julie Herres, Part 4: “Profit First” in Private Practice | GP 10

Four-Part Series with Accountant Julie Herres, Part 4: "Profit First" in Private Practice | GP 10

What does it mean to put profit first? What are some mistakes business owners make when it comes to profit? How can you implement ‘Profit First’ in your business?

In this podcast episode, Alison Pidgeon speaks with Julie Herres about implementing ‘Profit First’ in private practice.

Meet Julie Herres

Julie Herres is the owner of GreenOak Accounting. The firm provides bookkeeping, accounting, payroll, Profit First services to private practice owners throughout the United States.

Julie and her team have worked with hundreds of private practice owners, so they are uniquely positioned to be a trusted advisor to clients.

To get more information on GreenOak Accounting’s services or to schedule a free consultation, visit www.greenoakaccounting.com or connect on LinkedIn and Twitter.

In This Podcast

  • What does it mean to put profit first?
  • Mistakes business owners make
  • How to implement profit first
  • Things to do
  • Mistakes to avoid when implementing ‘Profit First’

What does it mean to put profit first?

Traditionally in accounting, you look at income – expenses = profit. In the book, Mike suggests that you look at income – profit = expenses

Mistakes business owners make

Profit becomes an afterthought and many times this results in the owner not paying themselves. Therefore what we’re trying to do is use the power of allocations so that you’re taking the income and splitting it into 4 main categories:

  1. Operating expenses
  2. Owners pay
  3. Taxes
  4. Profit

How to implement ‘Profit First’

  • Read the “Profit First” book
  • Open separate accounts
  • Create a budget plan
  • Have a payroll system in place
  • Consider all overhead expenses

Things to do

  • Create a payroll account
  • Do transfers into the accounts weekly for twice a month
  • Ensure that all expenses are covered
  • Ensure that taxes are paid
  • Avoid borrowing from other accounts

Mistakes to avoid when implementing ‘Profit First’

Make sure you put it on the calendar to make sure you’re not borrowing from your future to pay for your present.

  • Not putting the transfers on the calendar
  • Payment due dates are not considered
  • Profit percentages are incorrect
  • Not increasing the profit percentages and being intentional with transfers
  • Not viewing the business’s financials on a regular basis

Sign up for free consultation and 5 days of profit-boosting tips for private practice by clicking here!

Books mentioned in this episode

Useful Links:

Meet Alison Pidgeon

Alison Pidgeon | Grow A Group Practice PodcastAlison is a serial entrepreneur with four businesses, one of which is a 15 clinician group practice. She’s also a mom to three boys, wife, coffee drinker and loves to travel. She started her practice in 2015 and, four years later, has two locations. With a specialization in women’s issues, the practices have made a positive impact on the community by offering different types of specialties not being offered anywhere else in the area.

Alison has been working with Practice of the Practice since 2016 and has helped over 70 therapist entrepreneurs start and grow their businesses, through mastermind groups and individual consulting.

Thanks For Listening!

Feel free to leave a comment below or share this podcast on social media by clicking on one of the social media links below! Alternatively, leave a review on iTunes and subscribe!

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.