Setting Up Your Profit First Bank Accounts

Your Bank Account Blueprint

Today we’re getting practical. By the end of this episode, you’ll know exactly how to set up your Profit First bank accounts.

The Basic 5-Account System

At minimum, you need these five accounts:

Account	Purpose	Type
Income	Revenue collection point	Checking
Profit	Business profit savings	Savings
Owner’s Pay	Your compensation	Checking
Tax	Quarterly tax savings	Savings
OpEx	Operating expenses	Checking

Choosing the Right Bank

Look for banks that offer:

• No minimum balance requirements - You’ll have small balances in some accounts
• No monthly fees - Fees eat into your profit
• Easy transfers - You’ll move money between accounts regularly
• Multiple accounts allowed - Some banks limit how many accounts you can have

My Recommendations

For your main operating accounts:

• A local bank or credit union with good service
• Someone you can call when you have questions

For your Profit and Tax accounts (your “no temptation” accounts):

• An online bank like Ally, Marcus, or Capital One 360
• Slightly harder to access = less temptation to raid

Step-by-Step Setup

Step 1: List Your Current Accounts

Write down every business bank account you currently have.

Step 2: Open New Accounts

Contact your bank to open additional checking/savings accounts. Most can do this online or over the phone.

Step 3: Rename Your Accounts

Give each account a clear name:

• “PPB Income”
• “PPB Profit”
• “PPB Owner Pay”
• “PPB Tax”
• “PPB OpEx”

Step 4: Set Up Transfers

Schedule automatic transfers from Income to other accounts. We’ll cover allocation percentages in the next episode.

Common Questions

Q: Can I use the same bank for all accounts? A: Yes, but consider putting Profit and Tax at a separate bank to reduce temptation.

Q: What about credit cards? A: Pay credit cards from your OpEx account. We’ll cover this in a future episode.

Q: I’m a sole proprietor—do I need separate accounts? A: Absolutely. Mixing personal and business money is the #1 bookkeeping nightmare.

Action Items

1. Research banks in your area
2. Open your Profit First accounts this week
3. Send me a message when you’re done—I love celebrating wins!

Next week: The allocation percentages that will change your business.