November 2022 Income At-A-Glance
Gross Income for November: $129,862
Total Expenses for November: $28,217
Total Net Profit for November: $101,645
Difference b/t November & October: -$60,209
% of net profit to overall gross revenue: 78%
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 November 2022 Tax and Accounting tip.
This month, we’re talking about a “Year End 2022 Tax Planning Checklist”.
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 November Tax Tip: Year End 2022 Tax Planning Checklist
Only a few weeks remain of Calendar Year 2022. In this tax tip, I provide four areas to consider for your year end 2022 tax planning checklist.
1. Cash Requirements.
Taxpayers need to consider their available cash and cash requirements to prepare for what we refer to as the tax “double whammy.”
Come April 15th, taxpayers must pay any remaining 2022 tax liabilities and the 1st Quarter 2023 estimated tax payment.
In considering these requirements, you may then determine your ability to make certain year end, tax-saving expenditures – such as prepaying expenses or making capital expenditures that may allow for full, bonus depreciation in 2022.
2. The QBI – Qualified Business Income Credit.
This could mean a 20% haircut on your business federal income tax!
There are certain limitations for “high earners”. It is essential that you consult with a tax professional prior to year end to determine what limitations may apply and what actions need to be taken.
You cannot “cure” a failure to act prior to year end.
3. Maximizing Retirement and HSA Accounts.
Retirement and HSA contributions are good not only for tax planning purposes but also as a means to set aside funds.
4. Harvesting Losses.
For those who are coming to the end of the year with capital gains, now is the time to take a look at potentially harvesting certain offsetting losses – e.g., losses from volatile crypto currency positions, and so on.
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 November Legal Tip
Why Should I Form an LLC or Corporation?
People often ask why they should consider creating an LLC or corporation for their business. Of course, every business is different, but here are some general factors that U.S.-based entrepreneurs should consider.
The primary reason why businesses organize themselves as LLCs or corporations is to minimize liability.
If you are operating a business, and it’s not a corporation or an LLC, then you are either a sole proprietor (if it’s a one-person business) or a partnership (if more than one person is an owner).
These are the default modes.
Sole proprietor or partnership status may be fine for your business, but one disadvantage is that the owners of these types of companies have unlimited personal liability. Meaning, if there is a lawsuit or claim against the business, the other side can sue you personally and potentially go after anything you personally own.
LLCs and corporations are “limited liability entities”. This means that, in most cases, creditors of the company can sue the company itself, but the owners of the business can’t be sued personally for claims against the company. So in this case, if someone had reason to sue, they could attack the assets of the LLC or corporation but not your own personal assets or future earnings.
Of course, forming an LLC or corporation is not a “get out of jail free” card.
You can still be personally liable for fraud, harassment, or other bad acts. And if the LLC or corporation isn’t properly maintained and in compliance, the “corporate shield” could be pierced and you could be personally liable for claims against the company. Forming a corporation or LLC should be considered a first step in the process of protecting your company and your assets.
There may also be tax advantages to structuring your business as an LLC or a corporation. Before forming an LLC or corporation, you should always speak with an accountant (CPA) who advises business owners.
Another benefit of forming a corporation or LLC is that it creates a structure for you to sell your business or to bring in investors. As your business grows and evolves, these may be attractive options, and you will be better off having the structure set up beforehand, with a history of properly created documents and data.
Of course, this just scratches the surface of the pros and cons of LLCs and corporations. LLCs and corporations are similar, but not identical, so the choice of which form of business is right for you requires further discussion. As always, you should consult an attorney before making a decision as to the right structure for your company.
If you have questions about forming an LLC or corporation, feel free to contact me. I’m always happy to talk with members of John and Kate’s audience.
What Went Down In November
Interview of the Month
3 Value Bombs
- Podopolo is the only app out there built by podcasters, for podcasters. It’s for listeners and hosts. It is a whole ecosystem where everybody wins.
- Structural problem in other apps prevent creators from easily growing their reach and discoverability, engaging with their fans, knowing their fans, having the deep audience analytics that are actionable … you have all of this in Podopolo.
- It can be hard to discover something new. There’s so much to discover, and you have to know what you’re looking for.
Call to Action
- Podopolo in Apple App Store – Download Podopolo for free! Mention John Lee Dumas – my username – when you sign up!
- Podopolo in Google Play Store – Download Podopolo for free! Mention John Lee Dumas – my username – when you sign up!
Diving into the AirBNB market
While we’ve been trying to divest ourselves of properties and owning more in recent years, November brought with it an opportunity we couldn’t pass up.
In January 2020 John’s parents purchased a condo in a community here in Palmas Del Mar. It’s a beautiful first-level, 2 bedroom, 2.5 bath condo inside a gated group of condos called Marbella.
They bought it so they’d have a place to stay during the winter months when John’s mom comes to visit, and they decided the rest of the year they’d rent it out.
Not wanting to deal with rentals, they hired a management company to take care of that side of things, and they found out quite quickly that the unit was a highly desirable one.
After Hurricane Maria it was fully remodeled, so the design and fixtures are all up to date. Plus, because it’s on the first floor, it has direct pool and beach access right off the patio.
While none of us knew it at the time, it was a steal given what lie ahead with covid-19 and the rising cost of properties – not to mention rising interest rates.
Nearly three years later John’s parents have decided to sell the place, and instead of putting it on the market they asked us if we would like to buy it first.
The purchase wasn’t a no-brainer for us. We know that properties here in Puerto Rico come with a lot of maintenance and upkeep, especially those on the water.
But after much consideration, and recognizing that the AirBNB market inside of Palmas Del Mar is a good one, we decided to go for it. We’re even taken over the rental side of things, and so we’ll be diving into AirBNB as hosts for the first time!
The unit is currently rented out through February 2023 through the previous rental company, but we’ve already received several requests to rent the unit in 2023. If you or someone you know is planning a trip to Puerto Rico, and you’re interested in checking out a small slice of Paradise in Palmas Del Mar, you can check out the unit here!
Product/Service Income: $124,707
TOTAL Journal sales: Total Journals Sold 104: $3,575
The Freedom Journal: Accomplish your #1 goal in 100 days!
- Total: $1,820 (58 Freedom Journals + 3 Digital Packs sold)
The Mastery Journal: Master Productivity, Discipline and Focus in 100 days!
- Total: $895 (20 Mastery Journals + 4 Digital Packs sold)
The Podcast Journal: Idea to Launch in 50 Days!
- Total: $860 (14 Podcast Journals + 5 Digital Packs sold)
Podcasters’ Paradise: The #1 Podcasting community in the world!
- Recurring: $6,867 (82 recurring)
- New members: $8,080 (7 new members)
- Total: $14,947
Real Revenue: Turn your BIG IDEA into Real Revenue
- Total: $225
Podcast Sponsorships: $105,924
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: $5,155
*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: $3,279
- Audible: $0
- Bluehost: $0
- Click Funnels: $3,264
- CovertKit: $15
- Coaching referrals: $0 (email me for an introduction to a mentor for overall online business or a Podcast focused mentor!)
Resources for Podcasters: $332
- Podcasting Press: $0
- Splasheo: $0
- Fusebox: $0
- Libsyn: $212 (Use promo code FIRE for the rest of this month & next free!)
- Repurpose House: $95
- UDemy Podcasting Course: $25
Other Resources: $1,544
- Amazon Associates: $45
- Other: $1,499
Total Gross Income in November: $129,862
Business Expenses: $24,943
- Advertising: $1,500
- Affiliate Commissions (Paradise): $69
- Cost of goods sold (Journals): $593
- Fulfillment: $1,680
- Consulting: $208
- Charitable Contributions: $100
- Design & Branding: $0
- Dues & Subscriptions: $85
- Legal & Professional: $85
- Meals & Entertainment: $648
- Merchant / bank fees: $2,254
- Amazon fees: $868
- PayPal fees: $833
- Office expenses: $272
- Community Refunds: $1,685
- Promotional: $0
- Travel: $1,503
- Virtual Assistant Fees: $12,485
- Website Fees: $75
Recurring, Subscription-based Expenses: $3,274
- Adobe Creative Cloud: $110
- Accounting: $375
- Boomerang: $50 (team package)
- Business Insider: $13
- Authorize.net: $36
- Google: $60
- Cell Phone: $298
- Dropbox: $120 (annual subscription)
- Internet: $57
- eVoice: $12
- GoSpiffy: $250 (annual subscription)
- Infusionsoft CRM: $241
- Insurance: $669
- Libsyn: $201
- Linktree: $6
- PicMonkey: $8
- Taxes & Licenses: $523
- Patreon: $40
- Shopify: $36
- Zoom: $55
- Workflowy: $49 (annual subscription)
- Xero: $65
Total Expenses in November: $28,217
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 November 2022: $101,645
Biggest Lesson Learned
Mini Check Ins
Have you ever considered what it would look like for you to plan a check in with yourself once per month?
I started doing this a couple of months ago and I’m loving it!
I call it “mini” for a reason: it hardly takes any time, but the results are massive!
Here’s what my mini check ins look like…
- Schedule a recurring time on my calendar (same day and time each month, I like to do the 1st of the month, or close to it)
- Review my completed tasks in Asana (gives me a strong sense of everything I’ve accomplished)
- Review my upcoming tasks in Asana (gives me a look at what’s ahead, plus I’m able to see tasks I may have planned poorly for… meaning, I should have completed them during the previous month but wasn’t able to)
- I think about what would make the next 30 days a win for me and write down at least 3 things so I can refer back to that list throughout the month
- I jump on a Skype call with JM and Jess, 2 of our VAs, and I ask them how their work is going, if they have any questions, and get a feel for whether they have enough bandwidth for more assignments
It doesn’t take more than an hour just one time per month, and these check ins have helped me immensely when it comes to planning and preparing for the month ahead.
And with the New Year right around the corner, it’s a perfect time for you to try it out!
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.