According to the Small Business Association, running out of capital is one of the main causes of small business failure. The Profit First method addresses this by helping you separate income across five dedicated accounts and allocate percentages to each—putting profit first. If you're ready to implement Profit First and need an easy way to track your allocations and account balances, we'll show you exactly where to get the official spreadsheet.
What is a Profit First spreadsheet?
A Profit First spreadsheet is a free tracking tool that helps you monitor target allocation percentages (TAPs), current allocation percentages (CAPs), and account balances across all your Profit First accounts. The spreadsheet developed by Profit First Professionals LLC gives you an instant assessment of your business's financial progress.
The spreadsheet tracks five core accounts: income account, profit account, owner's pay account, operating expenses (OpEx) account, and tax account. You record your allocation percentages and balances weekly, monthly, quarterly, and yearly—all in one place. This visibility helps you compare where your allocations actually are (CAPs) against where you want them to be (TAPs), so you can adjust your distribution strategy as you grow.
Why do I need a Profit First spreadsheet?
When you're managing multiple bank accounts, you need a clear system to stay on top of cash inflows and cash outflows. The Profit First spreadsheet gives you that system. Without it, you're tracking balances in your head or across multiple bank statements—which makes it nearly impossible to see if you're hitting your allocation targets.
The spreadsheet shows you exactly which accounts are falling short of their targets and which are on track. If your OpEx account consistently exceeds its TAP, you'll see that pattern immediately and can address it before it threatens your profit. If your profit account is growing faster than expected, you'll know you can increase your owner distributions or adjust your targets upward.
Mike Michalowicz designed Profit First to make businesses permanently profitable, but the system only works when you measure your progress. The spreadsheet turns your bank account balances into actionable data. You'll improve cash flow visibility, make smarter allocation decisions, and build the discipline that separates profitable businesses from those that run out of capital.
How do I download the Profit First spreadsheet?
You can download the official Profit First spreadsheet by accessing the template in Google Sheets, then making a copy to customize with your business information. The template is provided by Profit First Professionals LLC and is free for individual business use. Once you've made your copy, you can customize account names, target allocation percentages, and distribution dates to match your business structure.
➡️ Click here to get your Profit First spreadsheet.
After you copy the Google Sheet, you can work directly in Google Sheets or download it as an Excel file. Both formats preserve all formulas and functionality for tracking TAPs, CAPs, and account balances. The spreadsheet is designed to accommodate the five core Profit First accounts plus any additional accounts your business needs—such as materials and subcontractors, inventory, or debt repayment accounts.
To connect with a Certified Profit First Professional for personalized guidance, visit the Profit First Professionals website. Note that the spreadsheet is intended for individual business use only and should not be redistributed or used for commercial purposes.
How do I set up my Profit First spreadsheet?
Set up your Profit First spreadsheet by first confirming how many business checking accounts you need. Most businesses start with the five core accounts—income, profit, owner's pay, operating expenses, and tax—but some industries add accounts for materials and subcontractors, inventory, or debt repayment. The spreadsheet accommodates additional accounts, so customize it to match your business structure.
Next, set your distribution dates. Many businesses use the 10th and 25th or the 15th and 30th of each month, but choose dates that align with your cash inflows. Consistent distribution dates create the rhythm that makes Profit First work. Then set your TAPs and CAPs for each account. It's okay to start small—even a 1% profit margin is a step in the right direction. You can work your way up to larger targets as your cash flow improves.
Once you've determined your accounts, distribution dates, and allocation percentages, follow these steps to fill out your spreadsheet:
✅ Step 1: Open the Profit First spreadsheet template and create a copy. You can download the Google Sheet as an Excel file after making your copy if you prefer working in Excel.
✅ Step 2: Within each quarter section, list your Profit First account names: materials and subcontractors, real revenue, profit, owner's pay, taxes, and operating expenses (OpEx). Include any other accounts unique to your business, such as inventory or debt repayment.
✅ Step 3: Within each account row, write your TAP next to the corresponding account. Repeat this step for each of the four quarters of the year, adjusting TAPs quarterly as you make progress toward your goals.
✅ Step 4: Use the columns corresponding to each month to record the account balance and CAP for each of your Profit First accounts. Record these twice per month on your distribution dates after you complete each allocation cycle.
✅ Step 5: Compare each account's CAP to its TAP. Make a note of any account balances that fall short of your savings target or exceed your spending limits, then adjust your next allocation accordingly.
✅ Step 6: Review your Profit First spreadsheet weekly for cash flow visibility, monthly to stay on track with allocations, quarterly to adjust TAPs, and yearly to assess your overall financial progress.
What information goes in the Profit First spreadsheet?
The Profit First spreadsheet records three critical data points for each account: target allocation percentages (TAPs), current allocation percentages (CAPs), and account balances. TAPs are your goal percentages—where you want your allocations to be. CAPs are where your allocations actually are right now. The gap between TAPs and CAPs shows you which accounts need adjustment to reach your targets.
You'll also record account balances for each of your Profit First accounts twice per month on your distribution dates. These balances give you a snapshot of how much cash sits in each account after you complete your allocations. Over time, you'll see patterns—such as your income account growing faster than expected or your OpEx account consuming more than its allocated percentage.
The spreadsheet includes sections for weekly, monthly, quarterly, and yearly tracking. At the weekly level, you monitor cash flow and ensure you're staying within your allocation targets. Monthly and quarterly sections help you assess progress toward your TAPs and make adjustments. The yearly view shows you how your allocation discipline has improved your profitability over 12 months.
How often should I update my Profit First spreadsheet?
Update your Profit First spreadsheet twice per month on your distribution dates—typically the 10th and 25th or the 15th and 30th. Record account balances and current allocation percentages after each allocation cycle. This cadence keeps your data fresh and ensures you're making allocation decisions based on accurate information rather than outdated balances.
Beyond the twice-monthly updates, review your spreadsheet weekly for cash flow visibility and to spot any unusual spending patterns. Monthly reviews help you confirm you're staying on track with your allocations and hitting your distribution targets. Quarterly reviews are the time to adjust your target allocation percentages as your business grows and your cash flow improves. An annual review shows you how far you've come and helps you set ambitious but realistic TAPs for the year ahead.
Consistent updates turn the spreadsheet into a powerful diagnostic tool. If you skip weeks or months, you lose the ability to see trends and catch problems early. The discipline of updating your spreadsheet reinforces the discipline of managing your allocations—which is the foundation of Profit First.
Where can I get help with my Profit First allocations?
If you're struggling with your Profit First allocations, reach out to a Certified Profit First Professional. These experts specialize in helping small business owners implement the Profit First system successfully. They can review your current allocation percentages, help you set realistic target allocation percentages, and troubleshoot any challenges you're facing with cash flow or account balances.
Profit First Professionals can also help you customize the spreadsheet for your industry and business structure. Some businesses need additional accounts beyond the five core accounts, and a professional can guide you on which accounts to add and how to set TAPs for them. They're experts on all aspects of Profit First—including using the spreadsheet to track your progress over time.
To connect with a Certified Profit First Professional, visit the Profit First Professionals website. You can also find guidance in Mike Michalowicz's book Profit First, which walks you through the entire system step by step. For businesses that want to combine Profit First with the right banking tools, consider a platform designed specifically for managing multiple accounts and automating percentage-based transfers.
Implement Profit First with Relay
Relay is the official banking platform for the best banks for Profit First. With Relay, small business owners can open 20 checking accounts1 for income, profit, owner's pay, taxes, and operating expenses—each with its own account number. You can set up percentage-based transfers for your TAPs and automate your allocations, so your Profit First system runs without manual effort twice per month.
Here's why small business owners choose Relay for Profit First:
Up to 20 checking accounts with no hidden fees or minimum balances on any account. Set up deposit-only accounts and separate operating expense accounts for greater clarity into cash flow.
Percentage-based transfers that match your TAPs exactly. Automate these transfers so your allocations happen on your distribution dates without you lifting a finger.
50 physical or virtual debit cards2 that you can assign to specific accounts and set spending limits on. Get a clear picture of where your money is going and prevent OpEx overspending.
Earn competitive APY on your savings3 with up to two interest-bearing accounts. Auto-transfer rules help you consistently move excess cash out of operating accounts and into savings.
Streamline bookkeeping with integrations for QuickBooks Online and Xero. Spend less time deciphering transactions and more time growing your business.
Relay lets you open up to 20 checking accounts with no hidden fees or minimum balances—each with its own account number—so you can set up all five core Profit First accounts from day one. You can automate percentage-based transfers between accounts and track every allocation in real time. Open your account in minutes.
1 Relay is a financial technology company and is not an FDIC-insured bank. Banking services provided by Thread Bank, Member FDIC. FDIC deposit insurance covers the failure of an insured bank. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply. 2 The Relay Visa® Debit Card is issued by Thread Bank, member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used anywhere Visa debit cards are accepted.
3 For Relay Subscription Plans with an interest-bearing deposit account, the interest rate and Annual Percentage Yield on your account are accurate as of 12/11/2025 and are variable and subject to change based on the target range of the Federal Funds rate. Fees may reduce earnings. Starter Plan: interest rate 0.91%, APY 0.91%. Grow Plan: interest rate 1.53%, APY 1.55%. Scale Plan: interest rate 2.65%, APY 2.68%.
Frequently Asked Questions
Can I use the Profit First spreadsheet with Excel or only Google Sheets?
You can use the Profit First spreadsheet with both. The template is provided as a Google Sheet, but you can download it as an Excel file after making a copy. Both formats preserve all formulas and functionality for tracking TAPs, CAPs, and account balances.
How often should I update my Profit First spreadsheet?
Update your Profit First spreadsheet twice per month on your distribution dates—typically the 10th and 25th or the 15th and 30th. Record account balances and current allocation percentages after each allocation cycle, then review weekly for cash flow visibility and quarterly to adjust your target allocation percentages.
What's the difference between TAPs and CAPs in Profit First?
Target allocation percentages (TAPs) are your goal percentages for each account—where you want your allocations to be. Current allocation percentages (CAPs) are where your allocations actually are right now. The gap between TAPs and CAPs shows you which accounts need adjustment to reach your targets.
Do I need more than five Profit First accounts?
Most businesses start with the five core accounts—income, profit, owner's pay, operating expenses, and tax. Some industries add accounts for materials and subcontractors, inventory, or debt repayment. The spreadsheet accommodates additional accounts, and you can customize it to match your business structure.
Is the Profit First spreadsheet free to use for my business?
Yes, the Profit First spreadsheet developed by Profit First Professionals LLC is free for individual business use. You can download it, make a copy, and customize it with your business's account names and allocation percentages at no cost.
