Allocations Day

Allocations Day

In the current economic climate, the high cost of living, the increased inflation and with the recession coming up, we need to have a system or strategy in order for us to have a take-home pay.  Your goal in setting up your business is to be able to have financial freedom for you and your family, right? You have a team that receives their pay but for you as the business owner, there is none. Isn't that terrible?

That is why it is really important to do the allocation exercise on a continuing basis so that your mindset is trained to be in control of your finances. If you still have questions on how to do allocations, please feel free to speak with Annette or any of her team members to see how you might work together so that your business can move to a healthier financial position. 

Here are a few insights you’ll hear in today’s show…

  • How to access the Allocations Template and Instructions on how to have a copy?
  • Doing the first allocation exercise. (... After having done the bank accounts set up, Instant Assessment, Checking for Money Leaks and Setting up the allocations.)
  • Why is allocation a big deal in moving your business towards a healthy and stable financial position?
  • How do you proceed if Profit First does not work for you in your first attempt?
  • What is a Profit Plan and how it can help your business to speak about it with Annette or with anyone in her team? 
  • In situations where you have upcoming costs next week that will prevent you from allocating for this week, what can you do?

Resources:

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Hello, everyone, I am so glad you are here. For the final day of our get profit first implemented sprint. Now I know that a lot of you have been following along every day and doing the tasks every day that we have for you. So I am so so excited that you are moving Profit First forward in your business, that you are getting to a point where you can start having it work for you. Now, I think that I've gone through all of the comments and things that people have been leaving, I was trying to do that this morning to make sure that I covered everything off. So I think I have done that. But if I have missed a question from you, or if I have missed something, please tag me so that I get notified. And I can come and spotted easily. But I think I have managed to address everyone's questions. Clive Good morning is lovely to see you here. So I think I've covered I think I think I think I've covered everything off. That is outstanding for everyone.

1:07

I've also put that link to the allocations template that I shared with you that is now in the group as well. So you can access that it is a Google Sheet, make sure you copy the sheet rather than request edit access to the sheet, it will not give you edit access to the sheet. So do not submit the thing that says request access to edit, you're not gonna get it because if you do, you'll put your numbers in and everyone else will see your stuff. And the template will no longer exist, it will be your thing. So when you go into it, you need to copy it. And then you can use it for yourself and no one else will see your numbers when you copy it. But they will if you try and edit the template. So weird, let's not do that. Let's come in, you can hit Copy, and then you can have access to it no problem whatsoever for you to use indefinitely in your business as you get profit first working for you.

2:03

So today is an exciting day. Because today is allocations day, it's the day that we're actually going to move money under profit first. So it's a Friday, I usually choose a Friday as it happens to move the money around in my business, just because I like the quirky name of finance Friday, and I'm a geek at heart really. So it's fun for me to link the two together. I know I could call it Money Monday and do it that way. But nonetheless, I usually choose Friday to move the money around in my business. And I recommend that what you do, like I said yesterday is to choose a day that's going to work for you. Mondays don't always work for people, because we've bank holidays and that kind of things. And sometimes Fridays, don't work to some people prefer to have Friday's off or take half days, do whatever is going to work for you in your business. This is not about you, you know, ticking every single box, it's about using this system, in your business and your business is different to other people's businesses. So do what works for you in your business, and in getting everything working for you.

3:20

That being said, I would love if you are able to do your first allocation today. Now, for many people that can be scary and daunting and frightening and confusing and bring up a lot of emotion. And I completely understand that. Because if you particularly if you are in a place where you've not had that kind of extra money before you think, Well, I'm just going to fail at this, I'm gonna have to put the money in and I'm gonna have to take it back out again. Well, remember, we've done our money leaks exercise. And remember that we have looked at actually what our current percentages are. And we've treated by a small amount to take into the fact that we've done our money leaks exercise. So with that in mind, there is no reason why this will not work for you and your business today. Good morning, Becky. Thank you for joining me. So that is absolutely what we're going to do today, we're going to go into our allocation sheet or wherever you're going to do this you can do on piece of paper if you want but you're going to take out those percentages that you are going to use and you are going to allocate to the different buckets. Like I mentioned before,

4:38

if you have a large bank balance, then you're going to want to put into the tax account some of the historic tax payments that have been calculated for you but you've not yet paid. If you have a smaller bank balance, then I recommend that you go with your current bank balance and you allocate that as your first allocate Sure. And then when it comes to this time next week, you can look at your income account or see how much income has come in. And then you can use that for the basis of your next allocation. Yeah, absolutely Becky allocations day allocations day. So it's incredibly exciting. That is the task that we have today. I would love if you want to scream and shout about this, when you've done your allocation. I would love if you want to, you know, if you're going to post it on social media, make sure you tag me on Instagram, I am at a net, forgive Aw, N E, W, E, F, E, R, G s, make sure you tag me if you're gonna post it on social, you know, you can see my my Facebook account here, if you so make sure you tag me, if you're going to if you're going to shout about it and celebrate it, and you should shout about it and celebrate it because it's a big deal.

5:55

It's a big deal in moving your business, to a place where you have more take home, and where your business is financially healthy and stable. And, you know, in this current economic climate, we need our businesses to give us more take home because as we know, we are being squeezed personally, there is a cost of living crisis, there is increased inflation, there is a recession coming up. And for all these reasons, we need to double down on making sure that we have more take home from our business, so that we can ultimately live the life that we want to live, and that we can be comfortable in our home life. So it's massively massively important. Clive says it's about mindset and getting into the rhythm of allocating regularly Yeah, absolutely. Chris Clive, which is why we recommend that we you know, you do it, you choose a day a week, and you do that on that day, because then it becomes a habit becomes habit forming, and you start to see the fruits of your labor in those other bank accounts as well. And that is honestly incredibly rewarding when you see those pots build up. And you think I done that. That's not just money, that's now filtering out my business. And I don't really know what's happening to it, I am being conscious in how I treat money, I am being conscious in how I deal with money. And this plays into your, you know, this helps your money mindset and all those things as well, because you are in control of this situation. Now, it is not a situation that is going to spiral out, you can control this and you can control the money in your business. And all of that is massively positive, as a business owner, as you step up to be a business owner that is in charge of their finances. And as you go living your life as well, because you know, that each month, you know what's going to come in to your personal finances. So it helps from you know, planning as a family, understanding your budget as a family and how you need to live your lives as a family as well. These things are all so incredibly intertwined. And so it's really important that we have a handle on our businesses money so that we can have a handle on our personal lives and our personal finances as well.

8:27

So allocations day, as I said, Do your allocation today, shout about it, scream about it, raise it from the rooftops, that you have done your allocation, because it is such an incredibly great step forward for you and your business. So please tag me, when you have done it, I want to know I want to celebrate with you. I want to give you some virtual high fives, because this is the first step in your journey.

8:55

And now you might be thinking some of you may have done profit first before and fallen off the wagon. And thinking, well, it's not really the first step in my journey it is because today is the line in the sand day. And it doesn't matter if you've had a line in the sand day already. That's okay. We just hit the reset button. And we have today as your new line in the sand day. So this can still be a great day for you. Even if you've tried this, and it's not quite worked out before this, you can make the intention for this to be the time that it will work. Because there is no reason it won't work. And you get to decide that and you get to put your mindset towards that. And that is going to help drive this forward. Have it implemented get that consistency in doing your allocations. And when you have the money in the right place at the right time. Wow, does it help? It helps ease anxiety around money. It helps ease the stress and the worry. I've had people say to me that I no longer have sleepless nights because of money anymore as a result of doing this, and doing it consistently, and today is the first step in doing it consistently in your business. And you might struggle with doing things consistently in your business, depending on how your brain works, you might find that a challenge. And that's okay. But let's overcome this challenge, let's make sure that we make a diary entry with ourselves that we hold ourselves accountable to that in the same way that we would if we had a client call or a customer call. And you can make this a strong habit that ensures your financial stability that ensures that your business is a financially healthy business going forward, particularly as we move into a recessionary period as a country, which I have kind of been touching on for about six or nine months now. But most commentators are now agreeing that we are going to be in recession before the year is out. So we have those things to think about as well. And getting profit first implemented as a great is a great foundation for what may become more challenging times in potentially your business and or your personal life as well. So, as I said, tag me, let me know, I also want to whilst we are on, let you know that this is some of the stuff that we actually do with clients as well. So we help get profit first implemented, when people first come on board as clients, we build out what we call a profit plan in your business.

8:55

A profit plan is basically a forward looking projection for your business with the principles of Profit First layered in, we get even more granular on your Profit First percentages and where they might need to sit and what happens with them over time. So if you do want to speak to us about how we might work together, I'm going to pop our fitting call link in the in the comments section of this video. And I'll edit the description afterwards and pop it in there as well. But I'm going to pop a link in there, you can fill in that form. And that will take you to book a call with me or one of my team. And we can have a chat how we might work well together as well. So I would love to speak to you and see if we are a good fit to help and support you with not only your profit first journey, but all the other Accounting II stuff in your business, your compliance, annual accounts, corporation tax returns, VAT, payroll, bookkeeping, and all those necessary and important and perhaps slightly boring things that need to be done by someone in your business. So that is all that I had to share today was about getting that allocation done. If you have any questions, if you're not sure how to do it, then absolutely make sure you ask.

11:41

Now, there may be an extreme situation where you look and you say, I have all these costs coming up next week, I cannot possibly allocate anything today from my business current account. Otherwise, I will not be able to pay the costs they have to going out of business on Monday, you might be in that situation. And you know, during the money leaks exercise will have helped with that. But that may not filter through for another couple of weeks. If you are in that position, I beg of you to just put one pound in each of the accounts that you've opened. If nothing else, if you are in a dire financial position that you just cannot, you cannot fathom how you could possibly make that full allocation today, it's just not going to happen. You've got people shouting at you for payments, you don't have the money for those, let alone starting to siphon money off. If you are in that position, there is no judgment around that that is just where you are. If you are in that position, one time, one single pound into your tax, your owner's pay, and your profit accounts. Okay, one pound, plus three pounds, they're not going to make much difference to having to pay your bill, but they will start you on the track to allocating they will start getting you in the mindset of moving this money every single week so that your business can move to a financially stronger and healthier position. So even if you could only do a pound do that allocation today.

13:01

Thank you so much for tuning in. As always, I really hope that this week has been fruitful for you, I really hope that this week has been worth it for you to implement Profit First in your business. And I hope that you've learned a lot and been able to move your business's finances forward as a result of this week. So thank you for watching. Thank you for tuning in, please continue to ask questions in the group, please continue to engage in the group. I will make sure I am in there regularly to answer the questions that you have. I am also I haven't quite scheduled it in the diary yet. So I'll be next week or the week after going to do another one of those Profit First q&a sessions. So again, make sure that make sure that you tune in for that I'm I'll announce it and let you know when that's going to be. But again, I will answer any questions that you have around Profit First, or indeed, around business in general. I've been in business now for 13 years, and I'm happy to answer any business related questions that you are interested in my opinion on. So remember, of course, you can make use of other people in the group who may have other areas of expertise if you want to ask any general business questions in the group as well. So you are more than welcome Clive. I am glad that that all makes sense for you. Like I say everyone, thank you for tuning in. Thank you for joining me today and all week. And let me know when you've done your allocation. I want to celebrate with you. Take care everyone, we'll speak soon.

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About the Author

Owner of Annette & Co. - Chartered Accountants & Certified Profit First Professionals. Helping online service-based entrepreneurs find clarity in their numbers, increase wealth and have more money in their pockets.

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