December 2021 Income At-A-Glance
Gross Income for December: $217,486
Total Expenses for December: $20,238
Total Net Profit for December: $197,248
Difference b/t December & November: +$14,959
% of net profit to overall gross revenue: 91%
Why We Publish An Income Report
This monthly income report is created for you, Fire Nation!
By documenting the struggles we encounter and the successes we celebrate as entrepreneurs every single month, we’re able to provide you with support – and a single resource – where we share what’s working, what’s not, and what’s possible.
There’s a lot of hard work that goes into learning and growing as an entrepreneur, especially when you’re just starting out. The most important part of the equation is that you’re able to pass on what you learn to others through teaching, which is what we aim to do here.
**We’ll receive a commission on the affiliate links below. If you click on my affiliate link and sign up for the products and services I trust and recommend, then I will earn a commission.
Ron Parisi’s Monthly Tax Tip
What’s up Fire Nation, my name is Ron Parisi. I’m a CPA and Managing Member of CPA On Fire, where we specialize in working with entrepreneurs to minimize their tax liability while keeping them in line with the ever-changing tax laws.
Our firm has been working with JLD & Kate at Entrepreneurs On Fire for years now, and they’ve included me in these monthly income reports with unlimited access to all their accounts so I can verify that what they report here is complete and accurate.
And because they believe in delivering an insane amount of value to you, my job doesn’t stop at the verification level; I also provide a new tax and accounting tip every month!
Ron’s December Tax Tip: What to consider when selling your business or podcast
This month we’re gonna be diving into business sales and exit strategies! This was inspired by a question that came in from the Podcaster’s Paradise Live Q&A. It’s a very important topic and it has to do with your exit strategy.
I know you guys are probably at a lot of different points in your business cycle – whether you’re just starting up, or you’ve been doing this for a while.
But I always think it’s a good business strategy to always be open, to always be cognizant of your exit strategy.
Whether that means one day you wake up and you decide you no longer want to do what you’re doing, or maybe it’s because somebody comes along with a super offer that you want to contemplate.
I always think it’s a good idea to put yourself in a potential buyer’s or a potential investor’s shoes with how you run your business.
So let’s get into the question: “If you were to list EOFires podcast assets, what would that look like?”
It would look something like this:
- Email List
- Episode Library
Let’s talk about the two most important financial statements of your business: your balance sheet & your profit and loss statement.
Just looking at basics, your balance sheet is your picture in time. So as of 12/31/2021 it shows what your assets were, what your liabilities were, and what the owner’s equity is as of that date.
Your profit and loss statement looks at periods of time, whether it be last month, last quarter, or last year. Those are the two distinguishing factors between the profit & loss statement and balance sheet.
There’s a term called “quality of revenue”, and what that means is looking at your recurring revenue, contracts with your customers, contracts with any sponsors, and then determining the quality of that revenue.
A potential buyer or investor will want to see that there’s going to be an ongoing revenue stream post-sale. Looking from that revenue lens, you almost have to back into your assets.
How do the assets of your business contribute to that quality of revenue?
Whenever we’re talking about selling a business, you want to tell a story. Frame the revenue and the assets that contribute to that revenue with your story about your business.
Obviously this is just one area of the exit strategy and planning for a potential sale, but it’s a great place to start.
Those of you in Fire Nation who are entrepreneurs & business owners and are looking to upgrade your financial operations going into 2022, check out our website: CPAOnFire.com!
We’ve been able to get our clients amazing results and would love to help you out as well. Book a call through our website and let us show you how we can help your business grow.
What Went Down In December
The second 6 months of 2021 in review
For our November and December income reports we’re doing something a little different: we’re going to share a recap of our year!
We’ll break it into two 6-month chunks: we reviewed the first six months of 2021 here at EOFire in our November income report, and now we’ll review the second!
Gross revenue Jul – Dec 2021: $1,473,034
Net revenue Jul – Dec 2021: $1,360,545
July was a travel month for us! We took a trip to Maine to visit John’s family and enjoyed some R&R. We spent the last part of the month making sure we were all ready for Podcast Movement in August!
Biggest lesson learned in July: Put in the reps
Our focus in August was Podcast Movement. I keynoted the event, and John spoke on stage alongside one of our fellow HubSpot Podcast Network hosts, Sam Parr from the podcast My First Million.
It felt great to be back in the conference scene!
This is also the month I launched a new podcast with my girlfriend Nicole called Nicole and Kate Can Relate. Search for it in your favorite podcast app, or check it out on our website at CanRelatePodcast.com!
Biggest lesson learned in August: Open, honest conversations
In September John attended and spoke at Funnel Hacking Live. He had nothing but great things to say about the event – and his time on stage!
We also took a time out in our September income report to highlight our then 18-month old Goldendoodle, Gus :)
To close out the month strong we celebrated nine years in business! Happy Anniversary, Fire Nation :)
Biggest lesson learned in September: Celebrating Milestones
In October John launched a new podcast called NFT’s On Fire! This is more of a fun side project than anything, and John has been diving DEEP into the crypto, blockchain, NFT world. On the horizon: the metaverse!
Biggest lesson learned in October: If it’s not broke, improve it!
In November we recapped the first 6 months of 2021!
Biggest lesson learned in November: Recapping and reflection
December 2021 income report
This month we recapped the second 6 months of 2021!
Biggest lesson learned in December: Looking ahead and visioning
Fire Nation, we hope you’ve enjoyed our 2021 recap! Feel free to revisit any of the above referenced income reports for more details, pics, and of course, our individual income breakdowns!
Product/Service Income: $193,514
TOTAL Journal sales: Total Journals Sold 295 – $10,543
The Freedom Journal: Accomplish your #1 goal in 100 days!
- Total: $2,756 (76 Freedom Journals sold)
The Mastery Journal: Master Productivity, Discipline and Focus in 100 days!
- Total: $2,132 (63 Mastery Journals sold)
The Podcast Journal: Idea to Launch in 50 Days!
- Total: $5,655 (156 Podcast Journals sold)
Podcasters’ Paradise: The #1 Podcasting community in the world!
- Recurring: $12,263 (107 recurring)
- New members: $4,764 (12 new members)
- Total: $17,027
Real Revenue: Turn your BIG IDEA into Real Revenue
- Total: $150
Podcast Sponsorships: $165,804
Free Courses that contribute to the above revenue:
Your Big Idea: Discover your big idea in under an hour!
Free Podcast Course: Create and launch your own podcast!
Funnel On Fire: Create a funnel that converts!
Affiliate Income: $23,972
*Affiliate links below – if you click on my affiliate link and sign up for the products and services I trust and recommend, then I will earn a commission.
Resources for Entrepreneurs: $19,406
- Audible: $68
- Bluehost: $0
- Click Funnels: $19,294
- CovertKit: $44
- Coaching referrals: $0 (email me for an introduction to a mentor for overall online business or a Podcast focused mentor!)
Courses for Entrepreneurs: $199
Resources for Podcasters: $1,281
- Podcasting Press: $158
- Splasheo: $74
- Fusebox: $189
- Libsyn: $798 (Use promo code FIRE for the rest of this month & next free!)
- Repurpose House: $45
- UDemy Podcasting Course: $17
Other Resources: $3,086
- Amazon Associates: $190
- Other: $2,896
Total Gross Income in December: $217,486
Business Expenses: $16,882
- Advertising: $0
- Affiliate Commissions (Paradise): $561
- Accounting: $374
- Cost of goods sold (Journals): $1,371
- Charitable contributions: $200
- Consulting: $101
- Design & Branding: $0
- Dues & Subscriptions: $0
- Education: $0
- Legal & Professional: $964
- Meals & Entertainment: $320
- Merchant / bank fees: $659
- Amazon fees: $4,354
- PayPal fees: $219
- Office expenses: $108
- Community Refunds: $97
- Promotional: $463
- Travel: $1,607
- Virtual Assistant Fees: $5,400
- Website Fees: $84
Recurring, Subscription-based Expenses: $3,356
- Adobe Creative Cloud: $100
- Audible: $16
- Apple Store: $165 (1-time purchases)
- 2do: $100 (1-time fee)
- Boomerang: $50 (team package)
- Authorize.net: $38
- Google: $49
- Glow.fm: $5
- Bonjoro: $45
- Cell Phone: $186
- Dropbox: $119 (annual fee)
- Internet: $40
- eVoice: $12
- Infusionsoft CRM: $241
- Insurance: $89
- Libsyn: $188
- Linktree: $6
- TaxJar: $19
- Taxes & Licenses: $523
- Zoom: $55
- WP Engine: $1,250 (annual fee)
- Xero: $60
Total Expenses in December: $20,238
Payroll to John & Kate: $15,900
Wondering what we do with all of our net revenue? We share all in our April 2017 Income Report :)
Total Net Profit for December 2021: $197,248
Biggest Lesson Learned
Looking ahead and visioning
Last month we talked about recapping and reflection, and just as important as it is to learn lessons from what has already taken place is being able to look ahead and vision what it is you want for your future.
Sometimes it can feel a bit “too big” to just sit and ask yourself “What do I want for my future?”, but with a couple of simple questions you can quickly get to a place where you feel grounded and aligned with where you want to go.
A couple of questions I reviewed as 2021 came to a close are:
- What are you looking to leave behind in 2021?
- What are you wanting to call in in 2022?
This alone sets the tone for what you’re ready to move on from, and also what you want to focus on in the new year.
In addition, I love choosing a word (or two) to help guide my mindset. Choosing a word for the year has helped me countless times when I find myself distracted, overwhelmed, or like I’m starting to sway. Reminding yourself what type of focus you want to have throughout the year is an easy way to get back on track.
For 2022, my word is presence. I want everything I do to focus on being present in the moment and enjoying that. Not feeling like I have to be ten steps ahead – or like I need to keep reliving the past. For me, presence creates fulfillment, and that’s what I want 2022 to be for me.
So give it a try for yourself! Ask yourself the questions above, and choose a word (or two!) for 2022 to help ground you when you need it most.
Happy New Year, Fire Nation!
Alright Fire Nation, that’s a wrap!
Until next month, keep your FIRE burning!
~ Kate & John
Note: we report our income figures as accurately as possible, but in using reports from a combo of Infusionsoft & Xero to track our product and total income / expenses, they suggest the possibility of a 3 – 5% margin of error.