August 2023 Income At-A-Glance
Gross Income for August: $122,160
Total Expenses for August: $12,078
Total Net Profit for August: $110,082
Difference b/t August & July: -$12,938
% of net profit to overall gross revenue: 90%
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 with our August 2023 Tax and Accounting tip.
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 R&D Credit
This month I’m revisiting a topic I covered earlier in the year: the R&D credit or the Research and Development credit.
There have been some changes in how this credit works and it is catching some by surprise. So, let’s break it down…
The R&D credit is essentially free money for your business.
Unlike deductions that reduce your taxable income, credits provide an immediate cash benefit.
Even if your company isn’t profitable, but has employees, you can use the credit against payroll taxes, which is great for startups.
To qualify for the R&D credit, there’s a 4-part test:
- You need an operation that reduces uncertainty.
- It involves an experimental process.
- It must be technological.
- It should serve a qualified purpose.
Many people associate this credit with pharmaceutical or software companies, but it can apply to various industries. If you have a new process in your company with dedicated expenses, particularly wages, it may qualify.
A big change happened in 2022 where R&D expenses can no longer be deducted 100% in Year One.
Instead, the expenses are amortized (spread out) over five years.
For example, if you invested $100,000 in R&D before 2022, you deducted the entire amount in the same year.
Now, you’ll deduct $20,000 annually for five years.
This caught many business owners off guard. They expected an immediate 100% deduction, but were left with a larger than anticipated tax bill.
To navigate this, work closely with your R&D expert and tax professional. Working with an R&D expert is crucial since this credit involves complex calculations.
At CPA on Fire, we aim to eliminate surprises. This way, you’ll know the implications of taking the R&D credit on your current year’s tax return.
Stay informed and plan accordingly to make the most of this valuable credit!
CPA on Fire offers CFO and fractional financial operation services. We have vast experience working with high-growth entrepreneurs. If you recognize the need to level up your financial operations to improve growth, profitability and free your time, let’s connect! We can show you how we help our amazing clients and what we can possibly do for you and your business.
Check out our website: CPAOnFire.com!
Special Feature: Brian Masterson’s Cybersecurity Tip
How to protect yourself from Deepfakes
Hello, Fire Nation! Brian Masterson here from The Cyber Advisors with a special feature Cybersecurity tip for you!
At CybVisor, we specialize in working with entrepreneurs to protect their wealth, reputation, and provide tips to protect your data, prevent identity theft, and safeguard your finances with ongoing training and education.
Today, I want to share how you can protect yourself from deepfakes.
Deepfakes refer to synthetic media that uses artificial intelligence (AI) techniques to create highly realistic and often deceptive content, primarily using images, videos, or audio.
These sophisticated manipulations leverage deep learning algorithms to superimpose or replace one person’s likeness with another, resulting in fake videos or audio that can be convincingly difficult to distinguish from genuine content.
While deepfake technology has positive applications in various fields, such as entertainment and digital arts, it has also raised significant concerns regarding its potential misuse for malicious purposes.
Deepfakes have also raised significant concerns due to their potential for misinformation.
Some of the main concerns are:
- Identity Theft and Privacy: Malicious actors can use deepfakes to impersonate individuals, leading to identity theft and privacy violations.
- Reputation Damage: Deepfakes can harm an individual’s reputation by portraying them in compromising or inappropriate situations, even though they were not involved.
- Cyberbullying and Harassment: Deepfakes can be used for cyberbullying and harassment, targeting individuals with harmful content.
- Fraud: Audio deepfakes have been used as part of social engineering scams, fooling people into thinking they are receiving instructions from a trusted individual.
Protecting yourself from deepfakes can be challenging as the technology behind them continues to evolve.
However, there are several steps you can take to minimize the risk and safeguard your personal information online.
Minimize the risk and safeguard your personal information
- Be cautious with your personal information: Limit the amount of personal information you share online, especially on social media platforms. The more information available about you, the easier it is for someone to create a convincing deepfake.
- Enable two-factor authentication (2FA): Enable 2FA on all your accounts whenever possible. This adds an extra layer of security, making it more difficult for attackers to gain unauthorized access.
- Verify sources and content: Be skeptical of any video or image that seems unusual or controversial. Check the source, cross-reference information, and look for inconsistencies to detect potential deepfakes.
- Use reputable apps and services: When using apps or platforms that involve uploading personal media, stick to reputable ones with good security measures in place. Read reviews and privacy policies before using any new service.
In conclusion, deepfakes are a powerful and double-edged technology with both creative and malicious applications. As the technology evolves, it becomes crucial to strike a balance between its positive use cases and the potential risks it poses to society.
Again, this is Brian Masterson from The Cyber Advisors.
If you are interested in taking a quiz on your personal cybersecurity hygiene, please visit our website: CybVisor.com!
What Went Down In August
Interview of the Month
3 Value Bombs
- Becoming an entrepreneur is like a bamboo shoot growing from the ground. Use intensely vivid language and create an atmosphere of excitement. Use rhetorical language, informal language, make it conversational, and style to create an intense sense of engagement with the reader.
- People think that if something is faster, you get paid less. If you produce the same value in less time, you make more money.
- What AI is going to replace is the processor. AI will not replace the painter, but the paintbrush.
AI Writer: Use ChatGPT to Write 100x Faster: Get a copy of Jon’s book for just $1!
Systems and SOPs
Systems, processes, standard operating procedures (SOPs)… Whatever name you call them by, they’re a critical component of your business.
We’ve been creating systems in our business since day one.
The thing with systems is they’re an ever-evolving and ever-changing project, requiring a lot of time and attention to set up – and more importantly – to maintain.
But the beautiful thing about systems is that, once set up, they work for you, saving you time and allowing you to scale and grow your business in ways that wouldn’t be possible otherwise.
So why are we talking about systems and standard operating procedures today – nearly 11 years later – if they’re something we set up on day one?
Because again, systems and SOPs are ever-evolving and ever-changing.
Sometimes the systems in your business require changes, maybe because:
- You have a new team member and they’re going to take on parts – or the whole – of a system;
- You’ve found more ways to automate or delegate parts or the whole of a system; or
- You’ve found efficiencies in the way you do certain tasks, and therefore you need to document a new way of doing something.
We also take on new projects and tasks in our business that require us to create a new system from scratch.
So during the month of August we decided to take on a pretty hefty project: an audit of all of our existing systems and SOPs. And this includes determining any project or task we work on in our business that might require a new system or SOP to be created.
Just to give you an idea, here are some of the systems updates we made this month:
- Sponsorship overview
- Onboarding a new sponsor
- Invoicing sponsors
- Member balance check
- Creating and scheduling our email newsletter
- Creating and scheduling our Podcasters’ Paradise email digest
- Submitting payroll
The project is well underway, and we’re making great progress. But we’ll definitely keep you posted as we continue to update and create new systems!
Puerto Rico Cruisin’: An Update
In early September Daven Michaels rocked the mic on Entrepreneurs On Fire.
He shared an opportunity to join myself and hundreds of other entrepreneurs on The San Juan Social Club Cruise, a one-of-a-kind luxury vacation where you will unearth exciting business, investment & economic opportunities, in addition to expanding your network!
Originally, I was going to be one of the featured speakers, which made us even more excited about sharing the cruise with you.
Unfortunately, since that episode aired, the cruise line had to move the dates, which resulted in me no longer being able to speak and attend the cruise.
This is still going to be an epic experience for anyone interested in attending, so we highly encourage you to check out SanJuanSocialCruise.com to learn more and secure your spot!
The cruise sets sail from San Juan, Puerto Rico on Saturday March 9 and returns to San Juan Saturday, March 16, 2023.
Product/Service Income: $118,381
TOTAL Journal Sales: $1,908 | Total Journals Sold: 54
The Freedom Journal: Accomplish your #1 goal in 100 days!
- Total: $1,181 (30 Freedom Journals + 3 Digital Packs sold)
The Mastery Journal: Master Productivity, Discipline and Focus in 100 days!
- Total: $367 (10 Mastery Journals + 2 Digital Packs sold)
The Podcast Journal: Idea to Launch in 50 Days!
- Total: $360 (9 Digital Packs sold)
Podcasters’ Paradise: The #1 Podcasting community in the world!
- Recurring: $4,790 (45 recurring)
- New members: $4,188 (5 new members)
- Total: $8,978
Real Revenue: Turn your BIG IDEA into Real Revenue
- Total: $0
Podcast Sponsorships: $107,420
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: $3,779
*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: $3,631
- Audible: $19
- Bluehost: $0
- Click Funnels: $3,612
- CovertKit: $0
- Coaching referrals: $0 (email me for an introduction to a mentor for overall online business or a Podcast focused mentor!)
Resources for Podcasters: $41
- Podcasting Press: $0
- Splasheo: $0
- Fusebox: $0
- Libsyn: $0 (Use promo code FIRE for the rest of this month & next free!)
- Repurpose House: $13
- UDemy Podcasting Course: $28
Other Resources: $107
- Amazon Associates: $24
- Other: $83
Total Gross Income in August: $122,160
Business Expenses: $9,137
- Advertising: $24
- Affiliate Commissions (Paradise): $45
- Cost of goods sold (Journals): $349
- Fulfillment: $0
- Consulting: $185
- Design & Branding: $0
- Dues & Subscriptions: $180
- Legal & Professional: $0
- Meals & Entertainment: $0
- Merchant / bank fees: $2,018
- Amazon fees: $702
- PayPal fees: $242
- Office expenses: $267
- Community Refunds: $0
- Promotional: $0
- Travel: $1,207
- Virtual Assistant Fees: $3,875
- Website Fees: $43
Recurring, Subscription-based Expenses: $2,941
- Adobe Creative Cloud: $110
- Accounting: $468
- Boomerang: $90 (team package)
- Authorize.net: $36
- Carbonite: $107 (annual fee)
- Google: $60
- Cell Phone: $152
- CookieYes: $10
- GoDaddy: $44
- Internet: $68
- eVoice: $12
- Keap CRM: $232
- Insurance: $669
- Libsyn: $226
- Linktree: $6
- Taxes & Licenses: $505
- Patreon: $40
- Shopify: $36
- Xero: $70
Total Expenses in August: $12,078
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 2023: $110,082
Biggest Lesson Learned
Is a hybrid work model the sweet spot?
On a recent episode of my podcast with my girlfriend Nicole, called Nicole & Kate Can Relate, we chatted about the topic of different working set ups: in-person, hybrid, and at home.
This topic came up because recently, Nicole and her husband / business partner Omar decided to start working in-person out of a co-working space. They went from working from home for the last 10-ish years to going into an office pretty much 5 days a week.
I found this move so fascinating because I LOVE working from home, and I can’t imagine that ever changing!
So I had to hear all the details from Nicole… Was it the right move? Do they love it?
She breaks it all down in this recent episode, Is a hybrid work model the sweet spot?
Spoiler alert: they’re loving it!
During our conversation I got to thinking about the different ways we work, and hearing Nicole out – plus reading a few articles on the topic here and there – I gained a new perspective.
You see, when we initially went into the conversation I was fully committed to thinking that working from home was THE BEST WAY – hands down.
But Nicole brought up a lot of great points about working with others in-person, like her experiencing a shift in energy and enthusiasm, and the positives of being around other business owners – how it can bring inspiration and allow the opportunity to give back by way of mentorship.
Our conversation made me realize that, at the end of the day, maybe there isn’t really only ONE right way.
There are a lot of pros and cons to different situations and scenarios, and your specific business set up, your employees, and how you service clients is going to play a big role.
So next time you’re faced with considering whether one way is better than another, give it some thought. Allow yourself to see the situation from others’ perspectives. In the end, like me, you may not end up changing your mind about what YOU choose, but at least you’ve considered other options.
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.