Profit First by Mike Michalowicz

Traditional accounting uses the logical (albeit flawed) formula: Sales – Expenses = Profits. The problem is that companies are run by humans, and humans are not always logical.

Successful entrepreneur Mike Michalowicz developed a behavioral approach to accounting by reversing the formula to: Sales – Profits = Expenses. Just as the most effective weight loss strategy is to eat smaller portions using smaller plates, Michalowicz explains that by taking profits first and allocating only what remains to expenses, entrepreneurs can transform their companies from cash-eating monsters to money-making machines.