Daniel HonanFounder, Profitable Painter CPA PLLC · I help painting contractors increase profits & cash flow while reducing taxes♦ Bookkeeping ♦ Tax

Painting Business Owners: Brush up on Financial Success. Learn to allocate using #ProfitFirst

Name: Painting Business Owners: Brush up on Financial Success. Learn to allocate using #ProfitFirst
Uploaded: 2023-08-24T14:15:05+00:00
Duration: 45 s
Channel: Daniel Honan
Description: In this instructional video, the presenter walks painting business owners through a practical implementation of the Profit First cash‑flow system. The…

24 Aug 2023 · 1 min

Watch on YouTube

0:45

In this instructional video, the presenter walks painting business owners through a practical implementation of the Profit First cash‑flow system. The process begins with calculating a target profit percentage based on the services offered. Next, the owner estimates a tax reserve, ideally with guidance from a tax planner, and determines the remaining operating expense percentages. The presenter advises setting up separate bank accounts for profit, tax, and operating expenses—preferably with a bank that doesn’t charge per account. On a weekly basis, revenue is deposited into a central checking account, and at week‑end the funds are allocated to the three dedicated accounts according to the pre‑determined percentages. This step‑by‑step framework provides a clear, actionable roadmap for painting contractors to ensure profitability, tax compliance, and disciplined expense management.

Chapters

implement this system, to sum it up, basically first understand what your profit percentage is going to be based off of what services you're providing. So you get that percentage down, then you need to understand how much should I be putting aside for taxes? This is very specific to your individual situation. So I would get with a tax planner on this one. You can ballpark it, return and be maybe okay, but to really nail it down, you might want to get with a tax planner. And then the operating expenses, basically everything left over, nail down those percentages, then get those different bank accounts set up with your financial institution. Hopefully it's an institution that's not going to charge you for every single checking account you're gonna open. Once you have this established, then on a weekly basis, making your deposits throughout the week. And then at the end of the week, you go into your revenue checking account and then you allocate that money over to your profit checking, your tax checking, and your operating expense checking based off the percentages you already developed and work from there. And that's really the down and dirty on how to implement that.