From Chaos to Control: Mastering Your Business Finances
In this episode, we dive into one of the most important but overlooked aspects of running a financially healthy business—organising your cash flow.
I’m Deb, a Profit First Professional and founder of an award-winning accountancy practice. I share the story of Julie, a business owner who was doing well on the surface but was tangled in chaos behind the scenes—all because she was operating from a single bank account. Her finances were unclear, unpredictable, and ultimately unsustainable.
That all changed when Julie adopted the Profit First method—a cash management system that flips traditional accounting on its head. By allocating profit before expenses, and setting up separate accounts for key areas like tax, owner’s pay, and operating costs, she moved from constant confusion to complete clarity and control.
This episode is your call to action. If you’re tired of guessing what’s going on with your money and want a simple, proven way to take charge, this conversation is your starting point.
About the Podcast:
The Financially Healthy Business Podcast continues with this powerful lesson: financial clarity starts with cash flow structure.
I share how the Profit First approach helps business owners gain real control over their finances—starting with a simple shift in mindset and a few key changes to the way you manage money. You'll learn why relying on a single bank account leads to financial fog and stress, and how dividing your money into purpose-driven accounts gives you peace of mind and decision-making power.
You don’t need to be a numbers person—you just need a method that works. This episode offers tangible, actionable steps that you can take right now to begin your own transformation.
Each episode in this series follows the roadmap from my book, designed to move you from financial confusion to confidence. With short, focused sessions of 15 to 20 minutes, you'll get practical advice that fits into your day—and your business.
You deserve a business that supports your life, not one that drains it. Let’s build that together.
Takeaways:
- The initial step toward financial clarity is to organize your cash into separate categories, which fundamentally alters your financial management approach.
- Implementing the Profit First methodology entails prioritizing profit before expenses, thereby ensuring that business owners receive their deserved earnings.
- Establishing distinct bank accounts or savings pots for various financial purposes can significantly enhance clarity and control over your business finances.
- Regularly allocating small percentages of your income to specific financial goals fosters a disciplined financial habit that promotes sustainable growth.
- The act of segregating funds not only aids in cash management but also transforms one's mindset regarding financial decision-making.
- Julie’s case exemplifies how systematic financial organization can lead to increased profitability and reduced financial anxiety for business owners.
Links referenced in this episode:
Companies mentioned in this episode:
- Accounts Ladies
- Accounts Office Academy
- Starling
- Metal
Transcript
Foreign Healthy Business podcast for business owners who want the confidence on cash flow that supports the life they actually want to live.
Speaker A:I'm Deb Halliday, Profit First Professional, founder of award winning accountancy practice the Accounts Ladies and the Accounts Office Academy and author of how to Build a Financially Healthy Business.
Speaker A:Learn how to take control of your finances, reduce stress and grow sustainably because your business should support your life, not consume it.
Speaker A:Let's get started.
Speaker A:Hi, I'm Deb Halliday and this is the Financially Healthy Business Podcast.
Speaker A:If you're new here, welcome.
Speaker A:I'm a Profit First Professional, the founder of the Accounts Office Academy and the author of how to Build a Financially Healthy Business.
Speaker A:Stress less and pay Yourself more.
Speaker A:This is episode two of our mini series and today we're diving into the very first step on your journey to financial clarity.
Speaker A:Organising your cash.
Speaker A:It sounds simple, but this one shift can completely change the way you feel about money in your business.
Speaker A:The big problem one bank account chaos.
Speaker A:Let me tell you about Julie.
Speaker A:Julie ran a successful print on demand business.
Speaker A:Beautiful designs, loyal customers, regular orders.
Speaker A:But behind the scenes, her finances were a mess.
Speaker A:Everything, every sale, every expense, every tax payment was coming in and out of one single bank account.
Speaker A:It looked full one day and empty the next.
Speaker A:She didn't know how much of it was hers, what she could safely spend or whether she was actually making a profit.
Speaker A:Julie wasn't failing, she just had no structure.
Speaker A:And she's not alone.
Speaker A:This is so common.
Speaker A:Most small business owners start out with one bank account.
Speaker A:It works for a while, until it doesn't.
Speaker A:And that's where profit first comes in.
Speaker A:The solution?
Speaker A:Profit first.
Speaker A:Profit first flips the traditional accounting model on its head.
Speaker A:Instead of sales minus expenses equals profit, which leaves profit to chance, we say sales minus profit equals expenses.
Speaker A:That means you take your profit first and learn to run your business on what's left.
Speaker A:Sounds simple, but it's incredibly powerful.
Speaker A:And it starts with organising your cash into separate pots.
Speaker A:Here's the system we introduce.
Speaker A:First income account.
Speaker A:All your money comes in here.
Speaker A:Profit pot.
Speaker A:A percentage goes here straight away.
Speaker A:Non negotiable.
Speaker A:Owners pay pot.
Speaker A:This is your regular income tax pot.
Speaker A:You'll never fear a tax bill again.
Speaker A:Operating expenses, opex.
Speaker A:What's left is what you run the business on.
Speaker A:You can set these up with multiple bank accounts or use saving pots or spaces within the same account.
Speaker A:Starling and Metal are two great UK options for this.
Speaker A:Once the structure is in place, you'll instantly feel clearer.
Speaker A:It's like labeling your money with a Purpose the first steps you can take today let's break this into a simple action plan.
Speaker A:You can start this week.
Speaker A:Step 1 Open a separate bank account.
Speaker A:Start with one new account called tax or profit.
Speaker A:Just one.
Speaker A:It's your first step toward clarity.
Speaker A:Step 2 Review your last three months income.
Speaker A:How much are you actually bringing in, excluding VT or sales tax if you're registered?
Speaker A:Step 3 allocate small percentages.
Speaker A:Try this profit 1% tax 15% or what your accountant suggests Owner's pay Whatever you can afford to start opex the rest.
Speaker A:You can increase the percentages over time.
Speaker A:The goal is rhythm, not perfection.
Speaker A:Step 4 Allocate weekly or bi weekly.
Speaker A:Choose a regular day.
Speaker A:Friday is my favorite.
Speaker A:It feels like paying myself before the weekend.
Speaker A:The mindset shift now let's talk about what really changes when you do this.
Speaker A:You stop guessing.
Speaker A:You stop panicking.
Speaker A:When a big expense comes in.
Speaker A:You stop feeling guilty about paying yourself.
Speaker A:You start feeling in control.
Speaker A:The act of separating your money doesn't just help you manage cash, it changes the way you think about money.
Speaker A:You'll start to notice which products or services are truly profitable, where your money's going too fast that you actually can afford to pay yourself.
Speaker A:You'll begin making decisions based on data, not drama.
Speaker A:It's not about being perfect, it's about being intentional.
Speaker A:Case Study Revisited Julie's turnaround Back to Julie after we helped her separate her finances, track profitability, and understand her advertising spend, everything changed.
Speaker A:She stopped overspending on underperforming products.
Speaker A:Her ad campaigns became more effective.
Speaker A:She finally had money set aside for tax and she paid herself properly for the first time in six months.
Speaker A:Julie went from confusion to confidence.
Speaker A:That's what happens when you organize your cash.
Speaker A:So here's your challenge this week.
Speaker A:Open at least one new bank account or space.
Speaker A:Label it for profit or tax.
Speaker A:Choose a day each week to move a percentage of your income into that pot.
Speaker A:Don't touch it.
Speaker A:Just build the habit.
Speaker A:Watch how it changes how you feel.
Speaker A:If you want to go deeper, visit how to Build a financially healthy business.co.uk where you'll find our resources.
Speaker A:And if you haven't got the book yet, grab your copy of how to Build a Financially Healthy Business.
Speaker A:It includes links, worksheets and examples to walk you through it all.
Speaker A:And if you found this helpful, would you do me a a favor?
Speaker A:Follow the podcast, share it with a fellow business owner, or leave a review.
Speaker A:It really helps spread the message.
Speaker A:Thanks for tuning in.
Speaker A:I'm Deb Halliday and I'll see you next time.
Speaker A:Thanks for tuning in to the Financially Healthy Business Podcast.
Speaker A:If today's episode helped you take a step closer to building a business that supports your life, share it with a fellow business owner, follow the show or leave a review.
Speaker A:It all helps to get the message to the people that need it.
Speaker A:Head to how to build a financiallyhealthybusiness.co.uk and explore the tools, resources and online programs.
Speaker A:You didn't start your business just to survive, you started it to thrive.
