Book

Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine

Mike Michalowicz · Penguin Random House Paid Beginner

If the gap between profit on paper and cash in the bank keeps biting you, this is the most widely used practical system for fixing it. Michalowicz flips the usual math to Sales minus Profit equals Expenses, and runs your income through separate bank accounts so you can see real cash for profit, taxes, and operating costs at a glance. It is a starting point for building habits, not a substitute for your accountant.

• The core move is to set aside profit and taxes first, into separate accounts, so you never mistake money you owe for money you can spend.
• It works off your actual bank balances rather than accrual reports, which keeps the cash picture honest day to day.
• Best read as a behavioral system for small businesses, adapt the account percentages to your own margins and local tax setup.