Profit First Allocations on the 10th & 25th VS Daily

profit first Mar 03, 2022

Hi, it's Kelley coming at you again from Profit Scale Thrive with another frequently asked question about Profit First and today's question: Why should I allocate money from the income account to the profit, the tax, and the owner's comp and OPEX accounts on the 10th and 25th of each month instead of daily or as needed?

Well, by doing the allocation process and paying bills twice a month on the 10th and the 25th, you benefit in two ways.

First doing this process every two weeks means you're doing it in batches, which means you are more efficient at it.

Secondly, it gives you clarity on your cash flow trends. You will start to see income accumulate and disperse like waves in an ocean. When you see the trends change, it may indicate an overall problem or opportunity just like the waves in the tides.

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