Income Report for June 2023: A month in the office, commitment, and more!

0:01Boom! Shake the room, Fire Nation. JLD here and welcome to Entrepreneurs on Fire brought to you by the HubSpot. Spot Podcast Network with great shows like Success Story. Today, we are talking about our income report for June 2023. And we have some fun things to talk about as soon as we get back from thanking our sponsors. As business owners, it's part of our job to stay ahead of the curve. And with AI stealing the show these days, it's time to study up. But where do you even start? Start with HubSpot. HubSpot's AI power tools, including their content assistant and ChatSpot, are changing the way you create content and communicate and serve your customers.

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1:25Is this your year? Visit Thrivetimeshow.com to see testimonials of how Clay Clark's business coaching has helped over 2 ,000 entrepreneurs to dramatically increase profitability. It's month to month and less money than an average minimum wage employee. Schedule your free consultation today at Thrivetimeshow.com. All right, Fire Nation, we are back and we are excited to dive into things today. Our gross income for June was$166 ,055. Our expenses were$10 ,337, a net profit of$155 ,718, a$1 ,500 increase between June and May, and our net profit was our highest ever. The net profit to overall gross revenue percentage, 94%.

2:18We really kept those expenses low for June, which is pretty darn sweet. Now we're going to dive into our monthly tax tip with none other than Mr. CPA on fire, Ron himself. Ron, talk to us about the reimbursement of all business-related expenses. Hello, John, and hello, Fire Nation. This is Ron Parisi with CPA on Fire, for your June 2023 tax and accounting tip. Hey, everybody out there. Hopefully, everybody's doing well. Hey, we're going to pick up right where we left off last month. Last month, if you remember, we talked a little about home offices as it applies to entrepreneurs and business owners.

3:03Today, we're going to talk exclusively about the S-Corps and how you reimbursed yourself as the owner for your home office and for other travel. But also for those outside of the S-Corp, I'm also going to talk a little about form over substance when it comes to the IRS and documentation and just some really good tips and things to keep in mind when you are tracking your own business activities and substantiating business expenses, et cetera. So first of all, if you're an S-Corp owner, you have to follow certain rules to be able to reimburse yourself for certain business expenses. And just think about this as it's called, in IRS speak, it's called an accountable plan.

3:56It doesn't necessarily need to be in writing, but I heavily suggest you have an accountable plan in writing. You can pick those up off the internet pretty easy. And basically, it's just a policy on how the company goes about reimbursing both you as the owner and other employees. So we talked a little about home office last month, right? So if you have a home office that you exclusively use for business, we talked about square footage. We talked about what are eligible expenses. So say you calculate that at$500 or$600 a month. You'd want to, every month or every quarter, you can reimburse yourself.

4:43That would mean that you transfer funds from the business account to your personal account to be able to reimburse you for those expenses. And the same thing happens if you go on a business trip or if you buy something for the business on your personal card, how you go about reimbursing yourself as the owner of the business. And I just want to use a quick example. I always like stories, right? So Paul has an S Corp. He decides that he's going to go to Scottsdale, Arizona for a conference. He eyeballs the expenses and says, I think it's going to be about$1 ,500. So he takes$1 ,500 out of his business account and goes off to the conference.

5:31Comes back, doesn't save any receipts, just says, oh, it's about$1 ,500. And then he sees that it's about$500 for a rent down at the office, downtown to rent an office. So he says, I'm going to reimburse myself$500 for my office. Basically, he's done nothing to substantiate his business expenses. If the IRS were to ever look at that, I'm pretty sure he would fail. Conversely, let's talk about Jennifer. Jennifer has an S-corp. She has a written accountable plan where she reimbursed herself every quarter. She's done the calculations on her home office. That exactly is$650. So every quarter she'll reimburse herself$650 times three.

6:28She also, anything that she tracks that she spends personally for the business, she substantiates that with receipts, basically very easy, just scans them in, throws them in the G-Doc or G-Drive. There she's building a case for those business expenses. They relate to the business, she's been able to substantiate it, and she reimbursed herself on a timely manner. So she's kind of covered all her bases as far as substantiating those business deductions. So I just want you, Fire Nation, just to be cognizant of one, how you reimburse yourself as an S-Corp owner, but two, you need to be intentional about substantiating your business expenses, doing them properly, and I can't emphasize this enough.

7:20I think just take the time to set the policy, to set the procedures, and man, everything goes very quickly after that. Everything is very efficient, but you need to just to spend that extra time to work with your tax professional, set up the accountable plan, set up your policy and your process for substantiating that, and off the race as you guys are. I'm a big believer, you know, set the policy, set the process, be as efficient as possible and work as much as you can on product and service, marketing and sales to grow your business. So, hey, again, this is Ron Parisi with CPA on Fire. Hopefully you found this tip useful or tips.

8:08And let's just do one thing. Let's do one thing today to go and grow your business. All right, Ron, as always, thank you and Fire Nation for all of your accounting and CPA needs. Just visit CPAonFire.com. Ron is standing by to chat with you. Now, what went down in June? Well, we have an interview of the month, and this was a very enjoyable conversation I had with the Kitty sisters, Palmy and Nancy. It's all about how you can legally pay zero in taxes through multi-family apartments investing. So Fire Nation, if you're not going to move to the paradise known as Puerto Rico, where I've been living for seven plus years, this is key because taxes, man, they can be brutal.

8:59So the three value bombs, well, one of them is that's one of the reasons you're not rich is because you've been programmed your whole life to think there's something wrong with getting rich quick. They debunk this myth. Number two, most people actually think tax laws are there to collect money from us. What they feel to realize is that most of the tax codes are actually an instruction guide on how to reduce taxes, an interesting way to look at things. And their third value bomb is that wealth isn't really measured in money. It's measured in time. and they have a great five-day challenge on make better investments.

9:36It's called Jumpstart Apartments. And Fire Nation, we're gonna be talking about a month at home and in the office and more when we get back from thanking our sponsors. Success Story, hosted by Scott D. Clary, is brought to you by the HubSpot Podcast Network, the audio destination for business professionals. Success Story features Q &A sessions with successful business leaders, keynote presentations, and conversations on sales, marketing, business, startups, and entrepreneurship. One of Scott's recent episodes was with none other than Jack Canfield, where they discuss adapting to life's twists and turns.

10:11Listen to Success Story wherever you get your podcasts. Are you ready to grow your business now? What if you could learn the proven systems and processes that have been used to grow thousands of multi-million dollar success stories? At Thrivetimeshow.com, see testimonials of how Clay Clark's proven business coaching has helped over 2 ,000 clients to increase profitability dramatically. Clay's proven business coaching program is month to month and less money than hiring a minimum wage employee. Sound too good to be true? Go to thrivetimeshow.com to see over 2 ,000 documented success stories. Because Clay only takes on 160 clients, he personally designs your business plan for you.

10:48Then Clay's team of talented designers, videographers, web developers, workflow mappers, and accounting coaches will help you implement that proven plan. See over 2 ,000 verified success stories and schedule your free 101 13-point assessment with Mr. Clay Clark himself today at Thrivetimeshow.com. Knowledge will not attract money unless it is organized and directed through practical plans of action. Become the next success story. Schedule your free 13-point assessment today at Thrivetimeshow.com. All right, Fire Nation, we are back and we are ready to talk about a month at home and in the office.

11:24And I'm going to bring on Kate to chat about this. Kate, take it away. What's up, Fire Nation? Happy summertime. And wow, into July already. I can't believe we're recording our June income report over halfway through 2023, which feels like it started about yesterday. And especially looking back for our income report this month, I realized how much we've done this year and how quickly it has gone. So our month at home and in the office has felt pretty fantastic for the month of June. We're carrying that into the month of July as well. Although, John, you have a big trip coming up in July for a mastermind in the mountains, which I'm so excited to hear about and recap and learn about.

12:15But until we get there, As you know, Fire Nation, we've been traveling a lot this year. We kicked off 2023 with a 10-day Caribbean cruise out of Puerto Rico. We ended January and started February with two events. I traveled to Florida for PodFest Expo. And then we did an event here in San Juan, Puerto Rico, Selena Su's mastermind. Then we took off for our trip to Japan mid-February. We traveled to multiple cities over three weeks. from there I made my way to San Diego and I spent two more weeks on the road there we hosted three families to celebrate my 40th birthday over the Easter holiday here in Puerto Rico and shortly thereafter we took off for our 23-day European river cruise which you've heard all about in our previous income reports which ended up being more like a total of 30 travel days and that rounded out our May.

13:13So again, to say that we've had a busy first half of the year is kind of an understatement. John, how have you felt being home for the month of June? It's been great. I mean, I love travel, but I also just love getting into our routine here in Palmas, Del Mar, Puerto Rico, because it's a great one. You know, we get to walk the dog. We have our gym. We have our nights out with friends. We have our nights in, you know, to watch Netflix. I mean, we just have a good rhythm, a good beat here. And traveling is great. I love it. Coming home is great. I love it. And, you know, we've got, you know, a pretty demanding visitor coming to visit in November.

13:56And I'm not talking about my father. I'm talking about little baby bear. So, you know, I'm kind of trying to enjoy peaceful night sleeps and long, lazy days while I can because they're going to be limited at the end of the year. They really will be. And he's not going to just be a visitor. Like he'll be here for good. We'll see about that. We can't send him packing. Yeah, definitely. I mean, we are so grateful for all of our incredible travel and the experiences that we've gotten to share with friends and family this year through all the travels that I just described, especially given the fact that, as John said, our family is expanding.

14:36we'll be welcoming a baby boy into this world in November. So that's kind of another crazy thing to think about this year, 2023. By the time it's over halfway over and before it's over for good and we're into 2024, we're going to have a baby. So, wow, that is kind of a wild thought, but we are so very excited for it. And as John said, travel's always been one of our biggest passions. It's something that we fully intend to continue once our baby boy joins us. But until then, we have just one more trip in the books this year in September, which again is very unlike us to only have one trip planned in a span of six months.

15:18We are going to be going to Seattle, Washington. This is going to be my first time ever in Washington State. So excited to be going to Seattle. We're joining my sister and her family at the Gorge for a three-day Dave Matthews Band concert, which is going to be such a blast. And we are going to follow that up going directly to Maine for two weeks of family time at the lake. And I'm so excited for that. I know it's going to be a super relaxing trip. And Maine is just incredibly beautiful that time of year. So that's going to be great. I'm looking forward to that as well. I do have to throw in one additional trip that I am taking in a couple weeks.

16:00I will be in Montana for a five-day all-guys trip. So I'll be telling you about that in the next income report for sure. I'll have some really interesting things to share. A few people from Fire Nation are actually joining us on this amazing Mastermind Retreat trek in the Montana wilderness, which is going to be a blast. So Kate, anything to add before I get into the income breakdown? I am jealous of this Montana trip. That is going to be such a blast. Again, I cannot wait to hear about it. We'll definitely be recapping it in next month's income report. Oh, sure. June 2023's income breakdown, product service income was$161 ,165.

16:46We did 74 journal sales, let's see, 45 freedoms, 18 masteries, and four podcast journal digital packs. And our 100-day gold journal just got a$3 ,333 royalty income check, which for anybody that has ever sold a book realizes that's a lot of journals if you're getting that kind of royalty from a company. So pretty pumped for that. Paradise brought in just over$6 ,000. Our podcast sponsorships over$148 ,000. And oh, my podcast launch book that I recorded over a weekend in 2012, it's still bringing in money. $36 audio book,$9 ebook. It's going to treat Kate and myself for a couple of froyos in the future here.

17:36Pretty exciting stuff. Yummy. Affiliate income was just under$5 ,000 and our expenses were super low. We did just over$10 ,000 in total expenses, which is the reason why we have a 94 % net profit to overall gross revenue percentage, which is unbelievable. It's our highest yet. So I don't expect that to happen all the time, but that's just great to see. And Kate's going to take us home with our biggest lesson learned, commitment. This one was inspired by a quote in one of James Clear's recent newsletters. I'm so obsessed with his weekly newsletter. If you're not subscribed to it, I highly recommend you check it out.

18:18And it got me thinking about priorities and commitments. One of the quotes that he shared in his email read, highly focused people do not leave their options open. They select their priorities and are comfortable ignoring the rest. If you commit to nothing, you'll be distracted by everything. And this reminded me of a common roadblock that I hear from entrepreneurs when I talk about setting up systems and a schedule for your business and any related activities. I mean, I do this in my personal life too. I have systems and schedules set up for everything. But I often hear from those that I'm speaking with who do not really have like systems or a schedule in place, that they have this assumption that if you do have systems in place and a schedule to follow, that that means that you can't exercise creativity and spontaneity.

19:12And it just seems like too rigid and in a box for them. But my argument is always the same with this. The system and the schedules are actually what give you more time and more freedom for creativity and spontaneity. And there's like this mental block that I really try and help people get past to see that. Imagine if you were able to accomplish everything that you needed to in your business in half the amount of time that it's taking you right now. That means that you have all of that time freed up to be as creative and as spontaneous as you want. If you're still having doubts, I have a few questions that I encourage you to ask yourself.

19:54Of course, all of these are over on the income report. If you want to check this out at a later time, if you're driving or not able to be super focused on these right now, eofire.com forward slash income 118. One question is, what if you're able to avoid simple mistakes thanks to the systems that you have in place? Another question, what if there were no such thing as repetition or wasted time because the systems and the schedule that you've created help hold you accountable. Sounds pretty amazing, right? Number three, what if you didn't forget about important meetings, deadlines, and brainstorming sessions because of the schedule that you have in place?

20:35That would be incredibly helpful, right? So much like James Clear is proposing, focus is such a core skill for success. Without it, you are destined to continue to be distracted by all the things that are not helping you reach your goals. Fire Nation, keep up the heat and keep your fire burning until next month. Success Story, hosted by Scott D. Clary, is brought to you by the HubSpot Podcast Network, the audio destination for business professionals. Success Story features Q &A sessions with successful business leaders, keynote presentations, and conversations on sales, marketing, business startups, and entrepreneurship.

21:14One of Scott's recent episodes was with none other than Jack Canfield, where they discuss adapting to life's twists and turns. Listen to Success Story wherever you get your podcasts. Is this your year? Visit Thrivetimeshow.com to see testimonials of how Clay Clark's business coaching has helped over 2 ,000 entrepreneurs to dramatically increase profitability. It's month to month and less money than an average minimum wage employee. schedule your free consultation today at Thrivetimeshow.com.