August 2022 Income At-A-Glance
Gross Income for August: $250,322
Total Expenses for August: $18,727
Total Net Profit for August: $231,595
Difference b/t August & July: -$23,778
% of net profit to overall gross revenue: 93%
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 August 2022 Tax and Accounting tip.
This month, we’re talking about the “Augusta Rule”.
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 August Tax Tip: The “Augusta Rule” – Rule for Tax Free Rental of Personal Residence for Up To 14 Days
The Augusta Rule arose from the rental of personal residences in beautiful Augusta, Georgia in connection with the Masters Tournament. In general, the August Rule (known to IRS as Section 280A) allows homeowners to rent out their home for up to 14 days per year without needing to report the rental income on their individual tax returns.
Key Tax Planning Points:
- 14 Days can be non-consecutive. The 14 days do not need to be consecutive. You may choose to rent a residence for select weekends, separate weeks or other non-consecutive time periods so long as the cumulative period of time does not exceed 14 days.
- It needs to be a “personal” residence but not a “primary” residence. If you have a vacation home, boat, condo or similar property it may qualify for the rental income exclusion as long as you use it as a residence. It does not need to be your primary residence.
- Rent must be reasonable for the location and date.
- This rule may apply to business events hosted in your residence. If you do not use your home as your primary place of business, you may employ the Augusta Rule to receive tax free rental income from your business for hosting board meetings, retreats and similar events. Again, the rental income must be reasonable.
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.
What Went Down In August
Interview of the Month: Clay Clark
3 Value Bombs
- The point of a business is to create both time and financial freedom so you can do what you believe God has called you to do.
- Nail it then scale it. Most entrepreneurs don’t have a system. Once you’ve put a system in place, things become easier.
- Be careful about defining what matters. Say no to the distractions and say yes to actions that matter.
ThriveTimeShow.com/eofire: Schedule your FREE 13 point assessment with Clay today!
Flow Photos: One of Clay’s students created Oklahoma’s highest rated and most reviewed real estate photography company, Flow Photos!
Podcast Movement 2022
August was a busy month for us, and it wrapped up with a visit to Dallas for the 9th annual Podcast Movement event!
We put together a full recap with our key takeaways (and a piece of criticism), but in short, PM22 did not disappoint.
We got to:
- Host our annual Podcasters’ Paradise meet up,
- Catch up with a lot of podcasting friends – both old and new!,
- Saw some very cool sponsor booths (including the HubSpot Podcast Network’s recording booths – next level!), and
- Sit in on some great talks from podcasting stars like Rob Walch, Harry Duran, and Allison Melody
And a cool thing that happened at Podcast Movement this year that was very fresh and new (to the best of our knowledge, anyway) was our very own JLD taking the stage for a live Q&A session!
No presentation here, folks – just your questions, answered!
It was a very high-value session, and I’m speaking from both personal experience and from the dozens of attendees who told me so in person.
Check out our recap to get a full rundown of what happened at Podcast Movement 2022!
Product/Service Income: $242,251
TOTAL Journal sales: Total Journals Sold 153: $5,651
The Freedom Journal: Accomplish your #1 goal in 100 days!
- Total: $3,389 (89 Freedom Journals sold)
The Mastery Journal: Master Productivity, Discipline and Focus in 100 days!
- Total: $546 (14 Mastery Journals sold)
The Podcast Journal: Idea to Launch in 50 Days!
- Total: $1,716 (50 Podcast Journals sold)
Podcasters’ Paradise: The #1 Podcasting community in the world!
- Recurring: $8,006 (85 recurring)
- New members: $4,562 (12 new members)
- Total: $12,568
Real Revenue: Turn your BIG IDEA into Real Revenue
- Total: $150
Podcast Sponsorships: $223,818
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: $8,071
*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: $7,776
- Audible: $19
- Bluehost: $0
- Click Funnels: $6,478
- CovertKit: $15
- Coaching referrals: $0 (email me for an introduction to a mentor for overall online business or a Podcast focused mentor!)
- Ask by Ryan Levesque: $1,264
Resources for Podcasters: $217
- Podcasting Press: $0
- Splasheo: $50
- Fusebox: $0
- Libsyn: $140 (Use promo code FIRE for the rest of this month & next free!)
- Repurpose House: $10
- UDemy Podcasting Course: $17
Other Resources: $78
- Amazon Associates: $68
- Other: $10
Total Gross Income in August: $250,322
Business Expenses: $15,890
- Advertising: $0
- Affiliate Commissions (Paradise): $191
- Accounting: $374
- Cost of goods sold (Journals): $928
- Fulfillment: $375
- Consulting: $232
- Design & Branding: $0
- Dues & Subscriptions: $249
- Legal & Professional: $0
- Meals & Entertainment: $842
- Merchant / bank fees: $1,296
- Amazon fees: $2,747
- PayPal fees: $194
- Office expenses: $245
- Community Refunds: $239
- Promotional: $344
- Travel: $3,523
- Virtual Assistant Fees: $4,025
- Website Fees: $95
Recurring, Subscription-based Expenses: $2,837
- Adobe Creative Cloud: $100
- Audible: $16
- Accounting: $375
- Boomerang: $50 (team package)
- Business Insider: $13
- Authorize.net: $36
- Carbonite: $94 (annual subscription)
- Google: $49
- Bonjoro: $45
- Cell Phone: $140
- Internet: $40
- eVoice: $12
- Infusionsoft CRM: $241
- Insurance: $669
- Libsyn: $213
- Linktree: $6
- TaxJar: $19
- Taxes & Licenses: $523
- Patreon: $40
- Shopify: $36
- Zoom: $55
- Xero: $65
Total Expenses in August: $18,727
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 August 2022: $231,595
Biggest Lesson Learned
Tip the Scales: Consuming vs. Producing
I’ve been thinking a lot about the beginning stages of Entrepreneurs On Fire.
John came up with the idea to launch a daily podcast, had no idea what he was doing, but was fully determined to figure it out.
I remember the hours he spent at the computer in our loft in downtown Portland, ME. I was typically the first one up in the morning to do my workout before heading into the marketing and advertising agency office I worked at. But once he decided to go all-in on his podcasting idea, John was the first one up.
He was at that computer or in the loft reading from the time I woke up, until the time I got home from work – which wasn’t always early.
John was consuming A LOT of content because that’s what the beginning stages of Entrepreneurs On Fire required.
But there came a time the scales had to tip. John had to start producing in order to truly learn how to podcast, how to run a business, how to grow an audience, how to get more engagement on social media…
You can read and learn for a really long time, but that consumption does not equal progress. The real progress begins when you start to take action on what you’ve learned.
What stage are you currently in, and is it time to tip the scales from consuming to producing? Think about it.
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.