Top Line Versus Profit - A Bookkeepers POV

Most business owners ask: “How much do I want as a top line?” The better question is: “How much do I want to profit?” 

Traditional financial thinking for business owners is this equation: Income - Expenses = Profit

This equation often leaves you with nothing left over. You might find yourself taking out loans to stay afloat. You might find yourself investing your own money into the business repeatedly. It really is shocking how similar most business owners are in this mindset. For the last 17 years, I have seen business after business fail using the traditional formula.

As a bookkeeper, with access to thousands of business owners and their profit and losses - I have been able to learn what will actually make a business profitable as your revenue grows. Enter the EPI™ Formula: Expenses + Profit = Income. You start by identifying your business expenses (including your salary), then add the profit you want to earn. That total becomes your income goal.

Now, when you have your top line, your profit has been intentionally created. You are no longer in debt and you are able to scale and grow with confidence.