Four bank accounts to keep while running a small business

Todd Lloyd
January 25, 2021


  1. Operating expenses.
    • Money from customers. The main account.
    • Donald Miller likes to keep this around $100,000. Payroll pushes it down to $20,000, but then it builds back up.
  2. Profit Account.
    • Donald Miller says he uses this as a safety net for operating expenses, but Profit First from Mike Michalowitz says never to touch this to cover expenses.
  3. Tax Account.
    • Money that goes to the government.
    • Tax and profit is 50/50.
    • Tax doesn't become a surprise at the end of the year.
  4. Personal Checking account.
    • Give yourself a salary so you live off of your own payroll.
    • If you own the business, the profit money is also yours.

Your business exists so that you can make money to buy investments that also make you money.

Todd Lloyd logo Petaluma chiropractor
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram