Profit Frist Accountig Explained

Tax Goddess

So for many people you have cash accounting right? I gave you hundred dollars I go down by a hundred you go up by a hundred

that's cash you have accrual which means you sent me an invoice I owe you a hundred but even though I haven't paid it yet for accounting purposes I lost my hundred you have the hundred because we're accrual Profit first basically puts standard accounting on its head So instead of looking at income and then expenses and whatever's left is what I get to keep Profit first accounting says here's my income i'm deciding in advance That let's say 20 percent of my money is going to get put into an account so that I can buy my next piece of real estate