Ryan VaughnCOO of Incite Tax & Accounting. Ask me anything about your taxes.

Saving For A Vacation - Part 1 | Incite Tax

28 Aug 2023 · 1 min

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In this video, Ryan Vaughn addresses small‑business owners who struggle to take a vacation because they feel too busy or lack the funds. He introduces the Profit First cash‑flow management system, which typically uses five core accounts for most businesses (seven for gyms), each with a specific purpose. Vaughn explains that while the standard account setup works for many, owners can easily add a dedicated “vacation” account. By allocating a small percentage or a flat dollar amount to this account each time they move money between the Profit First accounts—whether weekly or bi‑monthly—they can steadily build a vacation fund without disrupting their regular cash‑flow management.

Chapters

How can I save for a much-needed vacation? This vacation that you as an owner need usually is not happening for 2 reasons. You're too busy and there's no time to actually do it. And then the other reason is they don't have the money to go on the vacation they want to, which is what we're going to talk about today. Profit First is a cash flow management system that we are in love with. In the cash flow management system, if you're a normal business, there's a recommended 5 accounts you set up. And if you're a gym, there's a recommended 7 accounts that you set up. And each of those accounts have a specific purpose. But the thing is, that's the recommended, like, starting point. And for some businesses, maybe they only stick with those and it works just fine. How can I save for a much-needed vacation? You haven't guessed where I'm going with this. Set up a vacation account. It's that simple. Set aside a small percentage or a flat dollar amount so that when you're moving money once a week or twice a month into your different accounts, you're putting aside a little bit into this vacation account.