First off I want to congratulate you for creating profits in your business. Now we dive into managing those profits for success. If you haven’t established your cash management system check out my previous blog posts: 3 Tips For Managing Cash Flow And Realizing More Profit and Cash Flow System Rich Women Use to Profit First.

After we set up our cash management system and we have money going into a ‘profit account’ twice a month or the schedule you decided on. Now we create a plan for those funds that are accumulating in that account. It’s actually quite simple and is making our business more fun than ever before.

Watch this Video or continue reading below…..

Addressing The Elephant in The Room 🐘

I have often heard this but, it never felt right in my gut. I was watching a video by Dave Ramsey and someone commented “I will never take business finance advice from Dave Ramsey. Businesses are built on debt. They have profit that just pays down debt therefore avoiding tax liability.”

My dear friends that is a destabilizing way to build a business and in my opinion fast track to the bankruptcy court. If you want real tax strategies read the book: Tax Free Wealth by Tom Wheelwright. Also, find yourself a tax accountant who is knowledgeable and willing to think outside the box. The tax code was written for businesses to succeed.

I digress this is not a blog post about taxes but, rather Managing our Profits.

Profit Account Distributions

This is an account that will get distributed quarterly. I will go over a few scenarios but, everyone’s business is different and unique just like you and I are. Here inside Truth Bomb Academy we are helping women to create their system that works specifically for them.

5% of your income is moved into your Profit Account. In this example the business is bringing in $10,000/ monthly

In a healthy debt-free business:

$10,000 x .05 = $500 monthly is accrued in the profit account.

$500 x 3 = $1500 quarterly accruement

$1500 / 2 = $750

$750 is getting transferred to a Profit Hold Account (Interest bearing account not easily accessible) Also, called retained earnings.

$750 (Now it gets fun!!) This portion is your bonus. Go have fun!! A nice dinner, a fun travel, a massage, a special event you’ve been wanting to go to, the adventure awaits you. DO NOT REINVEST THIS IN YOUR BUSINESS

For a business that has debt:

$10,000 x .05 = $500 monthly is accrued in the profit account.

$500 x 3 = $1500 quarterly accruement

$1500 x .99 = $1485 – This goes to paying off the debt

$1500 x .01 = $15 is your bonus

However big or small this bonus is – celebrate you and your business!!

Retained Earnings and Reducing Debt

Retained earnings are important for those times in your business where it ebbs and flows. The sales may not be consistent throughout the year. Every company should have 3-6 months of operating expenses in their Retained Earnings (also called Profit Hold) account. This gives you a peace of mind and keeps you out of debt while still paying the bills.

When your sales dip (they all do at some time) this gives you a bit of time to revamp and correct the issues. Always be proactive and have a plan in place for when this account is accessed.

If you have accumulated debt in your business this needs to be paid off first to create a healthy foundation for your business to grow on. Debt will continue to destabilize your business if it’s not dealt with aggressively.

Even with debt in your business taking 1% of your profit as a bonus instills that habit of Profit First and celebrating you. We all create businesses to create an income. We want to make an impact but, with that impact profit is required for sustaining that impact.

Unlocking My Millions Business Playbook

Here inside Truth Bomb Academy women are unlocking their millions and creating their cash management system with Profit First.

For too long women have felt like imposters inside the business world. Ladies, I recently heard from one of my sisters in business ‘Stop using that term ‘Imposter syndrome’. You cannot be an imposter in a world that wasn’t created for you. The business world, the business culture was created by men for men. They have blessed us with their knowledge and expertise but, it was all from a masculine perspective with a masculine mindset. It’s time for us to bless the business world with our femininity and dare I say it emotions.

Women are reclaiming their businesses and experiencing them like never before. Your mindset is guiding you to either overwhelm and burnout or breathing life into you and your business.

Join us in Unlocking My Millions we help female entrepreneurs become millionaires. Empowering the whole woman in growing and scaling her business with fun, play, and ease—a paradigm shift in mentorship, business education, money, marketing, and mindset. Experience the difference

It’s time for a new conversation about how business looks as a female entrepreneur. If you are hitting a glass ceiling or beginning to feel the start of burnout… it’s time for a different perspective on how women design businesses around the life they desire. Learn more at

Build your business into your life… don’t let it be your life.

If you got value from today’s post, comment below. We love hearing from our readers.

Your Sister in Business,

Heidi Mummau

Truth Bomb Founders
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