The book, Profit First, introduces a novel way of managing cash flow with five bank accounts at two institutions.
For most of the small business readers, companies of one or a few people, this is too much of a jump.
The author expects these small companies to go from one business checking account up to five?
A better transition is two accounts.
A business checking for operating expenses and owner’s compensation.
And a savings account for taxes and profit.
Simple and standard issue to get these two accounts when opening a business checking account.
If the business owner wants to get more complex after six months they can open up three more accounts.
The five accounts is a novel idea but I presume the friction rate is quite high and most readers never do it.
The author makes that portion of the book very complex and not clear at all. That’s usually a sign that the author doesn’t really grasp the material themselves and are trying to mask the logic with complexity!