Rule #1 with a Business Account

I'm a freelance web developer and have 2 budgets set up in YNAB; Family and Business. My business account is strictly business and at the moment is pretty small with 3 Immediate Obligations and 4 True Expenses. I'm wondering what do with savings for the business account?

In his book Profit First Mike Michalowicz suggests opening up a separate account for savings and although my business account is not terribly expensive (fees wise), I'd rather not add the extra account if I don't need it. I'm wondering though, separate account or not, how do we apply Rule #1 to a business account where you're going to be socking away some profit on a monthly basis?

Thanks in advance,

Lawrence

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  • Socking away for what? Make a category for that purpose. Perhaps "Hold for Later" if you don't know anything right now.

    The important thing is to keep that money out of normal categories.

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      • Lawrence
      • lawrence
      • 10 mths ago
      • Reported - view

      dakinemaui it's just a "profit" savings which in his book  Profit First, Mike Michalowicz suggests we put away a certain amount of earnings for savings. When there is enough money in there a guy may invest it some where but for now, it's just to build up some profit.

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  • Like dakinemaui says, it's no different than saving in a personal budget. Put it in a savings type category. Call it whatever it is, like "Profit" for example.

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      • Lawrence
      • lawrence
      • 10 mths ago
      • 1
      • Reported - view

      Superbone perfect! That's exactly what I'll do! Thanks!

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  • I just sussed this out, on the thread about Profit First. How ot use YNAB for Profit First without 5 separate bank accounts. Have a look at that thread.

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