Now that you understand why you need 5 bank accounts, let me tell you why you need two additional accounts at a second bank.
Here is the thought process behind the second bank:
At the second bank you will open 2 accounts: The first one is your profit account and the second is the tax account. With these bank accounts, you DO NOT HAVE a debit card!! Make it so if you want to withdraw the money, you’ll have to go to the bank to do so. By doing this, it will make it harder to use the profit and tax money...out of sight out of mind. It’s important to understand that these two accounts are meant only to be used 4 times a year, no more no less!
More often than we like, if we are in a running short in our OPEX, we will transfer the money out of the profit account or tax account. We don’t want that to happen. The key is to understand why you are running short out of your OPEX account. Is it overspending? Did an emergency come up? Talk to your Profit First Professional (PFP) to come up with a plan, and figure out how to take care of it, you are not alone, we are here for you.
Please take advantage of your PFP. We go through the training, and online courses just so we can be equipped to help you, the business owners, achieve the goals you want. Go over your personal budgets, business budgets, goals both personal and business, and the roll out plans. Talk to them about anything that has to do with your finances. Having someone to bounce ideas off with will give you an upper hand in your business. You don’t have to do it alone.
This is a work in progress, not something that is going to happen overnight. Be patience, work with your PFP, and through time and intentional spending, you will make your goals into reality!
If you want to learn more about Profit First, please schedule a Free consultation! I would love to share it with you and help you to make your goals into reality!