Staring at one chaotic business bank account wondering where all your money went? We’ve been there, and honestly, it’s no way to run a strategic business.
If you’re tired of tax season surprises and constantly guessing whether you can afford that next business investment, it’s time to get organized with a simple system that actually works.
Why One Account Isn’t Enough
Having just one business account creates a mess of mixed funds that makes it impossible to see the real picture of your finances. You end up with unclear cash flow, difficulty tracking savings goals, and those dreaded tax surprises that nobody wants to deal with.
Our Simple Four-Account System
We recommend keeping it straightforward with these four essential accounts:
1. Operating Checking
Your day-to-day account for income deposits and regular expenses. This gives you a clear view of your operational cash without the noise.
2. Tax Savings
Set aside 25% of your profits here monthly. Trust us, your future self will thank you when tax season rolls around with zero stress.
3. Emergency Fund
Build this up with 10% of profits monthly until you hit 3-6 months of expenses. It’s your buffer for unexpected costs or those inevitable slow seasons.
4. Fun Fund
This is for guilt-free business investments – coaching, retreats, growth opportunities. Because strategic spending is still spending better.
Why We Don’t Love Profit First
While Profit First has good intentions, we find it creates too many accounts and overcomplicated systems. The truth? Simple systems are the ones that actually get maintained long-term.
Getting Started
The best part about this system is how easy it is to implement. We love Relay Bank for quick account setup and automatic transfers that make the whole thing practically run itself.
Ready to see this system in action? Watch our full breakdown on YouTube where we walk through exactly how to set up each account and make it work for your business.
Questions about organizing your business finances? We’re here to help you spend better and grow strategically – because knowing your numbers shouldn’t feel like a chore.
The content in this blog post is provided for general informational purposes only and should not be considered professional tax or legal advice. The author is not a Certified Public Accountant, and no assurances can be made regarding the outcomes or consequences of tax returns, IRS actions, or any financial decisions based on this information. Readers are strongly advised to consult with a qualified tax professional or legal advisor for personalized guidance specific to their individual circumstances. The author expressly disclaims any liability for decisions made based on the information presented in this blog post.
