July 2022 Income At-A-Glance
Gross Income for July: $269,939
Total Expenses for July: $14,566
Total Net Profit for July: $255,373
Difference b/t July & June: +$94,071
% of net profit to overall gross revenue: 95%
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.
Check out all of our monthly income reports – from the very beginning!
**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
Hello Fire Nation! Ron Parisi from CPA On Fire here for our July 2022 Tax and Accounting tip.
This month, we’re talking about the prospective “Inflation Reduction Act”.
At CPA On Fire, 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 July Tax Tip: The Prospective “Inflation Reduction Act”
While I don’t normally speak about prospective legislation, there are many concerns and questions surrounding the “Inflation Reduction Act” – especially the proposed $80 billion allocated to IRS funding.
Of this significant amount, $46 billion is specifically for IRS enforcement.
This highlights the immediate importance of reviewing your situation with a competent tax professional.
Two Key Tax Planning Areas
1. Understanding IRS Ability to Look Back
It is important to work with a competent professional not only regarding your current tax and accounting situation, but also with respect to recent years. The IRS may look backward in an enforcement matter.
Your tax professional can help you understand what may be subject to review and the related limits (i.e., statutes of limitations, etc.). This understanding will help you make a meaningful assessment.
2. Taxation to Support $700 Billion Proposed Spending
The reality of $700 Billion in proposed new spending is that taxes applicable to you and/or your business may increase.
Tax planning is an important financial tool as well as risk management tool.
Those of you in Fire Nation who are entrepreneurs and business owners and are looking to upgrade your financial operations in 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.
David Lizerbram’s July Legal Tip
What to Consider When You’re Buying a Business
I often assist clients who are buying businesses. Whether it’s your first time buying a business or you’ve done this before, there are some important legal considerations to be aware of.
This podcast won’t cover the financial or tax aspects of purchasing a business. There are a lot of good resources out there to assist with those issues (my #1 piece of advice here is to hire a good CPA).
Instead, we’re going to look at some of the legal points on the checklist.
The first question to ask is: What are you buying?
Are you buying the assets (and, possibly, liabilities) of the business, or are you buying the business entity itself?
Let’s say you’re purchasing an independent retail business.
You need to know if the store is held as a corporation, LLC, sole proprietorship, or partnership.
If it’s a corporation or LLC, you may simply want to buy 100% of the equity. The advantage of this approach is that it’s relatively quick and easy. You are stepping into the shoes of the old owners.
The downside is that you may also assume all of the liability of the corporation or LLC. If there are creditors out there who have claims against the company, you’re the person who may have to defend – or pay – those claims.
In order to avoid that, you may want to set up a new entity (such as an LLC or corporation – we’ll call it NewCo) and have NewCo buy the assets of the seller’s business.
This may not relieve you of all prior liability, but if the transaction is properly structured, then it could give the business a clean start. The seller may also want to offload some of their liability onto you, the buyer; that’s a point of negotiation.
Next question is: What legal documents do you need?
How you are buying the business will also guide what type of legal documents you need in order to effectively purchase the business.
Those documents may include:
- Asset Purchase Agreement,
- Stock Purchase Agreement,
- Bill of Sale,
- A note, or
- Other types of contracts.
Of course, the best practice is to have an experienced business attorney work with you to create and review the documents.
PSA: Never let the seller’s lawyer draft the documents for you.
Make sure you have your own legal representation. Even if the seller is your friend or a trusted relative. OK, back to the list…
Next question: Is the business in compliance?
Meaning, is it up to date on all taxes, government filings, corporate minutes, and other documentation that’s required?
If the business you’re buying needs some cleanup work, be sure to take that into account when negotiating the purchase. You don’t want to buy a business that’s advertised as “turnkey ready” only to discover that it’s a fixer-upper.
Intellectual property considerations are always important, too. Has the business registered its name, logo, and other important branding elements as trademarks? If so, make sure that the proper steps have been taken to transfer those registrations.
Does the business own other intellectual property, such as websites, social media accounts, domain names, written copy or video elements, patents or patentable inventions, trade secrets… and are they properly documented and protected?
How will they be transferred to you?
The next question is whether the business has employees
You will, of course, need a good understanding of who those employees are, what their wages and other compensation are, and any terms of their employment.
If you’re transferring the assets of the seller’s entity into your business, you may need to have the seller terminate all of the employees on the date you take over and re-hire them as employees of your new company. Of course, this can be a delicate matter, so give yourself plenty of time to work through the details of this process.
You should also review any significant contracts the business has with vendors, suppliers, customers, clients, contractors, and other relevant 3rd parties.
Be careful to take a look at any “assignment” clauses in those contracts to ensure that the seller can simply hand the contracts over to you. Some contracts may have terms that require the other party to approve an assignment or transfer of the contract. If that’s the case, make sure the seller handles that for you so you’re not scrambling to renegotiate a contract that you thought was a valuable asset of the business.
Another question: Does the business have a lease?
If so, what’s involved in transferring the lease to you?
Did the business owner personally guarantee the lease, and will you be required to do so as well?
Finally, make sure you review any licenses that the business or the seller has, to ensure that they can transfer to you as the new owner.
Of course, these are just a few of the considerations to keep in mind when you’re buying a business.
If you’re buying a business, and you want to discuss the legal ins and outs, feel free to contact me.
What Went Down In July
The Limitless Challenge with Krista Mashore
As many of you know, for the past several years we’ve helped promote Tony Robbins and Dean Graziosi’s online course launch, originally known as Knowledge Business Blueprint, then Knowledge Broker Blueprint.
This year Project Next was their focus.
When it came to promoting, we knew the course was going to be epic, valuable, and super impactful. However, we’ve started stepping back from affiliate launches to focus on the core of our business: the podcast, creating valuable content and free courses for you, Fire Nation!, our own online course Podcasters’ Paradise, and our relationships with our sponsors.
So when Krista Mashore reached out with a unique request, we were all ears!
Side note: Krista is a recent guest on Entrepreneurs On Fire and is in the top 1% of coaches nationwide. She was also recently named Yahoo Finance’s #1 digital marketer to watch in 2021!
But back to Krista’s request… She let us know she was going all in on promoting Project Next, and she had heard of our success promoting in the past.
Because this was her first affiliate experience – and being the smart online business woman she is – she wanted to learn from one of the best who had already been where she wanted to be.
Krista ROCKED the Project Next launch, coming in 2nd place out of ALL the affiliates. Super impressive.
But more importantly, she provided an incredible opportunity to her audience: to join her in her completely free 3-week long challenge and mastermind group, which she called The Limitless Challenge.
Throughout the 3 weeks Krista and her team were showing up every single day with live trainings, bonus downloads, exercises, accountability and next-level support. Breakthroughs were many, and the impact is still rippling.
You can learn more about Krista and her business at KristaMashore.com!
Product/Service Income: $219,889
TOTAL Journal sales: Total Journals Sold 114: $4,034
The Freedom Journal: Accomplish your #1 goal in 100 days!
- Total: $1,664 (47 Freedom Journals sold)
The Mastery Journal: Master Productivity, Discipline and Focus in 100 days!
- Total: $888 (27 Mastery Journals sold)
The Podcast Journal: Idea to Launch in 50 Days!
- Total: $1,482 (40 Podcast Journals sold)
Podcasters’ Paradise: The #1 Podcasting community in the world!
- Recurring: $10,239 (90 recurring)
- New members: $4,570 (10 new members)
- Total: $14,809
Real Revenue: Turn your BIG IDEA into Real Revenue
- Total: $0
Podcast Sponsorships: $200,987
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: $50,050
*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: $49,239
- Audible: $0
- Bluehost: $0
- Click Funnels: $6,117
- CovertKit: $23
- Crush it with Challenges by Pedro Adao: $2,305
- Ask by Ryan Levesque: $2,594
- Coaching referrals: $38,200 (email me for an introduction to a mentor for overall online business or a Podcast focused mentor!)
Resources for Podcasters: $254
- Podcasting Press: $0
- Splasheo: $50
- Fusebox: $0
- Libsyn: $160 (Use promo code FIRE for the rest of this month & next free!)
- Repurpose House: $0
- UDemy Podcasting Course: $44
Other Resources: $557
- Amazon Associates: $51
- Other: $506
Total Gross Income in July: $269,939
Business Expenses: $12,149
- Advertising: $656
- Affiliate Commissions (Paradise): $191
- Accounting: $631
- Cost of goods sold (Journals): $624
- Consulting: $101
- Design & Branding: $0
- Dues & Subscriptions: $248
- Education: $0
- Legal & Professional: $0
- Meals & Entertainment: $234
- Merchant / bank fees: $998
- Amazon fees: $1,494
- PayPal fees: $177
- Office expenses: $37
- Community Refunds: $597
- Promotional: $0
- Travel: $2,026
- Virtual Assistant Fees: $4,060
- Website Fees: $75
Recurring, Subscription-based Expenses: $2,417
- Adobe Creative Cloud: $100
- Audible: $16
- Accounting: $375
- Boomerang: $50 (team package)
- Business Insider: $13
- Authorize.net: $38
- Google: $49
- DocuSign: $15
- Bonjoro: $45
- Loom: $10
- Cell Phone: $136
- Internet: $40
- Keeper Security: $172 (annual subscription)
- eVoice: $12
- Infusionsoft CRM: $241
- Insurance: $89
- Libsyn: $213
- Linktree: $6
- TaxJar: $19
- Taxes & Licenses: $523
- Shopify: $36
- Zoom: $55
- Xero: $65
- Wordfence: $99
Total Expenses in July: $14,566
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 July 2022: $255,373
Biggest Lesson Learned
How Conversations Create Perspective
In July my friend Nicole and I recorded and published our 50th episode on our podcast Nicole and Kate Can Relate.
Each week we jump on the mic and have a candid convo about a topic we feel strongly about – and typically the topics we choose are ones that aren’t regularly being discussed.
The more episodes we record, the more I realize how critical having conversations is. The connection that’s possible through conversations is amazing, and the fun of it is there (hopefully), but also – it helps create perspective.
Not all conversations begin and end with an agreement. Sometimes you might have a conversation on a topic you know absolutely nothing about. …or maybe you thought you knew a lot about it, but after chatting you realize there were a lot of things you didn’t know yet.
One thing is for certain: the more conversations I have, the more I realize how rich the outcome truly is.
Connecting with someone else’s story or point of view, sharing your own, and coming out of the conversation with more knowledge and perspective is so valuable.
When’s the last time you called up a friend or family member and had a conversation around a topic you feel passionately about? Do it today!
And if you want to tune in to some of our conversations, check out Nicole and Kate Can Relate on your favorite podcast app!
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.