Finding Banks That Support Profit First

Setting Up Bank Accounts for Profit First: How to Choose the Right Bank

As you begin implementing the Profit First system, one of the first and most important setup steps is creating new bank accounts.

Profit First requires separate accounts for:

• Income
• Profit
• Owner’s Compensation
• Taxes
• Operating Expenses (OpEx)

However, not just any bank will work. To successfully implement the system, you need a bank that does not charge minimum balance fees on checking or savings accounts. Since some accounts may temporarily carry low or even zero balances, avoiding unnecessary fees is critical.

Finding a Bank That Works for Profit First

Here are practical steps to help you choose the right financial partner.

1. Start with Your Current Bank

If you already have a banking relationship you’re happy with, begin there.

• Ask whether they charge minimum balance fees.
• Explain that you plan to open multiple accounts.
• Let them know some accounts may occasionally have low balances.

If they do not charge minimum balance fees, you can move forward by setting up your five Profit First accounts and begin implementing the system.

2. Ask About Fee Waivers

If your bank does charge minimum balance fees, don’t assume that’s the final answer.

Explain your Profit First structure and ask if they’re willing to waive the fees. Many banks may accommodate long-term customers to retain your business.

It never hurts to ask.

3. Consider a Community Bank or Credit Union

If your current bank cannot waive fees, it may be time to explore other options.

Smaller community banks and credit unions are often:

• More flexible
• Less fee-driven
• Easier to work with
• More relationship-focused

Once you find a bank that fits your needs, open your initial accounts. If account limits apply, start with:

• Income
• Owner’s Compensation
• Operating Expenses

You can add Profit and Tax accounts later as needed. Ask your new banker to assist with transferring funds and closing old accounts to ensure a smooth transition.

Working with a Profit First Coach

Opening the accounts is just the beginning.

Understanding:

• How much to allocate to each account
• When to transfer funds
• How often to review percentages
• How to adjust allocations as revenue changes

is where the real transformation happens.

Certified Profit First professionals can guide you through the process to ensure the system works correctly for your business.

Profit First Support from Contractor in Charge

Contractor in Charge offers certified Profit First coaching specifically tailored to home service contractors.

With expert guidance, you can:

• Set up your accounts properly
• Establish allocation percentages
• Improve cash flow visibility
• Build consistent profitability

If you’re ready to turn your trade business into a consistent money-maker, consider scheduling a free Profit First consultation with Contractor in Charge and start building profit into your business from day one.