Take Control of Your Cash Flow and Scale with Confidence
Most small businesses don’t fail because they lack great products, services, or customers—they fail because they run out of cash.
If your business lives paycheck to paycheck, or if you’re constantly wondering where the money went, you’re not alone. The secret to profitability and financial stability isn’t making more money—it’s managing it strategically.
These five bank accounts will give your business the clarity, stability, and financial discipline it needs to thrive.
1. Income Account (Revenue Holding Account)
📌 Purpose: Central hub for all incoming cash flow.
🔹 All payments, client invoices, and revenue flow into this account first.
🔹 Keeps revenue separate from expenses, ensuring clarity on actual income.
🔹 Why it matters: Prevents the “one big checking account” problem, where cash flow becomes a confusing mess.
✅ Knowing exactly how much money is coming in gives you financial clarity and peace of mind.
2. Profit Account
📌 Purpose: Ensure your business is actually profitable.
🔹 Every month, transfer a percentage of revenue (e.g., 5-10%) into this account.
🔹 Creates a built-in safety net, ensuring that profit is taken first.
🔹 Why it matters: If you wait to “see what’s left over,” there will never be profit. This forces your business to be profitable by design.
✅ What gets measured gets managed—when you separate profit, you ensure your business isn’t just surviving, but thriving.
3. Owner’s Compensation Account
📌 Purpose: Pay yourself like a real CEO.
🔹 Your business should pay you first—not last.
🔹 Every month, transfer a set percentage (e.g., 30-50%) for owner’s salary.
🔹 Why it matters: Too many business owners live off scraps because they don’t set aside money for themselves.
✅ You didn’t start your business to be broke. Pay yourself like the CEO you are!
4. Taxes Account
📌 Purpose: Never stress about tax season again.
🔹 Every month, transfer 15-30% of revenue into this account.
🔹 Used only for paying business taxes—no spending from here.
🔹 Why it matters: The IRS doesn’t care about your cash flow. If you don’t save for taxes, you’ll always be scrambling when payments are due.
✅ Business owners who separate taxes never get caught off guard—be one of them!
5. Operating Expenses Account
📌 Purpose: Cover all business expenses without dipping into profit.
🔹 Use this for rent, payroll, software, marketing, supplies, and other costs.
🔹 Helps prevent overspending by capping what’s available for expenses.
🔹 Why it matters: Most businesses spend whatever is in their checking account. This system forces smarter decisions.
✅ You’ll never wonder, “Can I afford this?” again—your expenses will be controlled and predictable.
Bonus: Optional Accounts for Scaling Businesses
Once you have the five core accounts in place, consider adding:
🔹 Emergency Fund: A rainy-day account with 3-6 months of operating expenses.
🔹 Growth Account: Set aside funds for major investments (equipment, expansion, hiring, etc.).
🔹 Payroll Account: If you have employees, separate payroll to avoid cash shortages.
Want to Get Your Business Finances Under Control?
Setting up these five accounts is simple—but life-changing. If you’re ready to build financial stability and profitability into your business, let’s talk.
📅 Schedule a free coaching session with Ken Kilday to learn how to implement this system and scale with confidence.
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