Tracy has been a bookkeeper for nearly 20 years and is the owner of Ironbark Industries Bookkeeping. She began using Profit First about 12 months ago. She immediately saw the benefits of using Profit First and 6 months later decided to become a Profit First Professional so that she could share these same benefits for business success with her clients.
Tracy recently sat down with Profit First Australia CEO Laura Elkaslassy to talk about her journey to becoming a Profit First Professional and her experience seeing businesses transform after implementing Profit First.
In there discussion, Tracy and Laura spoke about:
• How she set up Profit First in her business, which is a Trust
• What she recommends for getting started with Profit First
• Her top tips for reducing expenses
• How Profit First has expanded her business beyond data entry into a business advisory role
• Exactly how she tackles Profit First with each client
What happens when Tracy meets a client for the first time about Profit First?
Firstly she reviews their accounts. She then prepares a profit assessment report, that will provide percentages for allocations. She then offers them ongoing support and accountability package to help them implement Profit First.
Tracy finds that most clients have the same pain points:
- Not paying themselves a wage or not enough
- Not enough to pay taxes
- Need to reduce expenses
How can you reduce your expenses?
Tracy suggests that you look at all of your subscriptions, work out if they are beneficial, can you change your processes to reduce the number of subscription you have. Every time your insurances need to be renewed, it’s time to review – are you getting the best value for money, are you paying for insurance your don’t need? Telephone and electricity providers, be on the look out for a better deal. Check the products that you are selling, can you get a better deal, volume discount, different provider or better payment terms.
Profit First in a Trust
The structure of Tracy’s business is a trust. There are two businesses under the same ABN and trust name.
It took a little while at the beginning to account for the changes between the 2 businesses and employees not always working full time in the business. After about 6-8 months she had fully implement Profit First and was able to notice the differences it was making.
Every business is different its about finding a way that works for that business.
My number one tip for Business Owners is just do it and take the plunge. It is life changing and brings back financial freedom, making life so much easier.
How has it changed your business? Why should other bookkeepers, accountants, coaches implement PF?
As a bookkeeper she is now doing more than just data entry, she is looking at the bigger picture with clients, ensuring they have enough money to pay their expenses, ensuring they are profitable, assessing their expenses, pay themselves and take a profit distribution.
She can help clients understand where their money is being spent and helping them to become a profitable business and stay a profitable business.