This Week’s Profit First Club Newsletter Estimated Read Time: 4 minutes   Hi everyone, It’s Stephen Edwards from Gro Profit First Accountants, and welcome to this week’s Profit First Accountant Newsletter! This week, we’re diving into the foundational principles of Profit First, and why it continues to be the most powerful financial system for small business owners seeking clarity, control, and ultimately, more money in their pockets.   Watch the full video here   What We’re Covering This Week: What is Profit First, and why it emotionally resonates with business owners Why traditional accounting keeps you stuck—and how to break free A deeper look at each of the 9 key steps in the Profit First journey The biggest mindset shift: flipping the accounting formula Real stories, real transformations from businesses like yours What is Profit First? At its core, Profit First is a simple yet transformative cash management system developed by Mike Michalowicz. Unlike traditional accounting that leaves profit as an afterthought, Profit First flips the formula: Sales – Profit = Expenses Instead of hoping there’s money left at the end of the month, we start with profit and make the business operate on what’s left. It taps into natural human behaviour—most business owners check their bank accounts daily, not their P&L reports. So why not build a system around that? The Biggest Mindset Shift: Flipping the Formula Let’s talk about something that might sound small but changes everything: the order of operations in your business finances.   Traditional accounting teaches you: Sales - Expenses = Profit That means profit is what’s left over. It's reactive, not intentional. It puts everyone else first—your team, your suppliers, your bills—and you, the business owner, last.   Profit First flips this mindset: Sales - Profit = Expenses Now, your profit is a priority. You pay yourself first. You build a buffer before anything else. This changes how you operate. It forces you to be more intentional with what’s left for expenses, and that discipline leads to stronger businesses over time.   As I say in the program, You'd never say 'I'll put my family last.' So why do we treat profit that way? Real Stories, Real Transformations We’ve worked with dozens of businesses across all sorts of industries, and the results speak for themselves: One client made their first profit in over seven years. Another slashed their costs by over £200,000. Some have tripled their profits and created buffer accounts to eliminate tax-time stress. For others, the win was as simple and powerful as finally feeling in control of their finances. And here’s the truth: it’s not always about massive overnight change. Sometimes, it’s just setting up a pot to pay your VAT and tax on time. Or building a bonus pot for the first time. These wins build momentum, confidence, and real freedom in your business. Why Profit First Works