- Profits First Calculation
updated 7 months ago
What is Profit First?
Profit First is a system (and a great book!) from small business finance expert Mike Michalowicz.
Profit First is based on the idea that we need to allocate our income and prioritize our profit before paying any of our expenses.
Typically, we take our income, subtract our expenses, and call the leftover profit (if we’re lucky enough to have any).
We recommend you flip to the calculation:
Old: Income - Expenses =
New: Income - Profit =
Calculation for Data Mash is:
1. Create a "User Option" of What Percentage do you want the profits to be. Type in "Profit First %" Tab to Create a User Option.
2. Hit the Plus
3. Use the "Range as Last Month" This will be your Income
4. 1st Calculation. Total Income * Profit First % = This is the Profits
5. 2nd Calculation. Total Income - ( Total Income * Profit First % ) = This is the Expenses
6. Click Save
7. Add Title - Profit First Calculation
8. Add Note - Income - Profit = Expenses
9. Save Calculation.
9. Save and Post to the Bridge (You can share this with the Owner of the Business)
Need Help with the Calculation We will help you, Submit a Ticket.