EP54: Profit First Accounting With Alicia Osthus

If you’re unable to pay yourself first, you don't have a financially healthy or sustainable business. Alicia Osthus dives into the basics of the Profit First method and explains why it’s time to get your finances in order so you can have a profitable business!In this episode, we talk about…Alicia’s accounting background and what led her to the Profit First methodCommon financial mistake contractors make and why it pays off to hire a professionalSuggestions for using Profit First Nation to understand accounting basicsBenefits of Profit First method vs. traditional accounting1. Separate accounts for personal vs. customer deposits2. Ability to have bonus pay and profit distribution3. Guidelines for allocating money and consistent paychecksThe mindset shift required to pay yourself first and understanding your real revenueDeduction possibilities and the difference between a 1099 contractor vs. employeeWe sell like we buy—don’t be a cheapskate in your own businessHow Profit First gives you both clarity around your finances and permission to spendLinks to Resources:Alicia Osthus - https://aliciaosthus.com/Profit First By Mike Michalozicz - https://mikemichalowicz.com/profit-first/Profit First For Contractors By Shawn Van Dyke -https://www.profitfirstcontractor.com/Learn how to better manage pressure in the Profit Club – www.hammerandgrind.com/theprofitclubFacebook group - https://www.facebook.com/groups/thecontractorprofitgroupFacebook – https://www.facebook.com/hammerandgrindpodcastInstagram - https://www.instagram.com/hammerandgrindpodcast/Website – www.hammerandgrind.comHelp us get the word out to other contractors by leaving us a review or sharing our podcast! Hosted on Acast. See acast.com/privacy for more information.