August 2019 Income At-A-Glance
Gross Income for August: $156,316
Total Expenses for August: $36,459
Total Net Profit for August: $119,857
Difference b/t August & July: -$33,579
% of net profit to overall gross revenue: 77%
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.
Josh Bauerle’s Monthly Tax Tip
What’s up Fire Nation, my name is Josh Bauerle. I’m a CPA and the Founder 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.
I’ve 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!
Josh’s August Tax Tip: W-9 Requests for Contractors
We’ve talked a lot about 1099’s on these income reports. We’ve gone over who you do – and don’t – need to send them to; how to go about sending them; when you need to send them; and much more.
But one thing we haven’t touched on much is what you can do from the very beginning of the relationship with a contractor to ensure you follow the 1099 steps correctly (and most effectively!)
So that’s exactly what we are going to do this month!
There are very clear rules on who you do and don’t need to send a 1099 to at year end.
- They need to be US citizens or residents
- They need to have been paid at least $600
- They need to be an individual – not a corporation, and
- They need to have been paid cash or check directly, and not through a third party like PayPal.
The mistake most businesses make, though, is waiting until it’s time to send those 1099’s to figure out who they need to send them to and what information they need to send them.
You can solve that problem with one simple step: send out W9’s to all new contractors right when they start working for you.
A W9 is simply a form that tells you the name, address, and tax ID number of the contractor you are paying. Essentially, everything you need to know to issue them a 1099, if one is necessary.
You can get a blank copy of a W9 to send at the IRS website here.
My recommendation is to require one of these be filled out by ALL contractors who start working for you, even if you know you won’t need to send them a 1099.
This protects you in two ways.
- If you do need to send them a 1099, then you have all their information on hand when it’s time to file them. I can’t tell you how many clients we’ve had who needed to send a 1099 but could no longer get in touch with the person they needed to send it to.
- It protects you in case the person is lying about needing a 1099.
For example, someone may tell you that they don’t need a 1099 because they file as a corporation. If you take their word for it and they’re lying, the IRS could hold you responsible.
But if they fill out a W9 stating that information, you are now off the hook.
So I highly recommend requiring all contractors to fill out and return to you a W9 before starting work.
And here’s a bonus script you can send with the W9:
We’re so excited to begin working with you! In order to start paying you, we need to have a W9 on file for all contractors. I have attached a blank one here for your convenience.
Could you please fill this out and return it as soon as possible? Even if a 1099 isn’t required at year-end for you, please fill this out anyway and return it so we have it on file for our records.
If you have any questions let me know. Thanks!
Quick, easy, and no reasonable person can say no. And now you’re all covered come tax time, whether the 1099 is necessary or not!
As always, please feel free to contact me if you’d like to discuss what would be best for YOUR business. I LOVE chatting with Fire Nation!
What Went Down In August
This year marked the 6th annual Podcast Movement event – and our 6th year attending!
The event was hosted at the Rosen Shingle Creek Orlando, and WOW was it ever beautiful!… and super convenient for us coming from Puerto Rico ;)
We kicked off the event in style with a PACKED house for our Podcasters’ Paradise members meetup – also our 6th time hosting our fellow Paradisers the night before PM kicks off!
Highlights and takeaways from the event
- In-person events are a must for every entrepreneur. Find at least one you can attend that makes sense for you and your business goals, and commit to it!
- Never stop learning. No matter how long you’ve been at it, always keep an open mind, especially when you’re in a setting that’s so conducive to feedback and brainstorming.
- Start building a community now! Whether it’s a free Facebook group, your podcast, or another medium you’ve chosen to share your knowledge with an audience, be sure you’re leveraging your authority. Create a platform for your followers to come together and not just interact and engage with you, but also with one another. This is HUGE!
- Provide value. There are so many ways you can provide value to those around you. Keep your eyes and ears open for opportunities to provide value to others around you.
- Show up and be flexible. You never know who you’re going to meet or what conversation is going to happen next, so show up and be flexible with your time!
If you want to check out our full recap of this year’s Podcast Movement, plus our biggest lessons learned from the first 5 years attending the event, head over to our full recap!
Toronto & the Start of our 90-day World Tour!
Since moving to Puerto Rico we’ve made it a tradition to plan a 3-month Fall trip that coincides with hurricane season. AKA: get off the island from Sept – Nov!
In 2017 our trip consisted of stops across New Zealand, Australia, and the UK.
Nevis Bungie Jump, NZ
Currumbin Wildlife Zoo
Youpreneur Summit, UK
In 2018 we made 17 stops around Europe, including a 10-day cruise in the Mediterranean.
Hofsburg Palace, Vienna
Coliseum in Rome
And in 2019, our trip will be made up of stops around the world:
- Europe (Latvia, Poland, & France)
In August we started on our journey in Toronto with our great friends Jill & Josh Stanton from Screw the Nine to Five.
Over 2 weeks we covered a lot of ground – and gave ourselves a taste of just about every type of day you can imagine!
From full work days, to all-in explorations days – from conference days, to attending a mastermind – from days at the cottage to days at the spa… we truly did it all!
To get a full rundown of our travels from previous years – and to follow along our journey this year – be sure to check out our travel page where we’ll be posting our trip diaries once our travels are complete!
Our next stop after Toronto is Fiji, where we’re currently enjoying some R&R at our cottage in paradise.
Stay tuned for our September income report, as we’ll be sharing more Fiji – and overall trip – updates, including a behind-the-scenes look at our time with Tony Robbins, Dean Graziosi, and Russell Brunson at Namale, Tony’s resort here on the island of Vanua Levu!)
Product/Service Income: $97,623
TOTAL Journal sales: 432 Journals for a total of $11,476
The Freedom Journal: Accomplish your #1 goal in 100 days!
- TheFreedomJournal.com: $160 (3 Hardcovers & 0 Digital Packs)
- Amazon: $4,075 (164 Freedom Journals sold!)
- Total: $4,235
The Mastery Journal: Master Productivity, Discipline and Focus in 100 days!
- TheMasteryJournal.com: $110 (1 Hardcovers & 2 Digital Packs)
- Amazon: $1,943 (81 Mastery Journals sold!)
- Total: $2,053
The Podcast Journal: Idea to Launch in 50 Days!
- ThePodcastJournal.com: $0 (0 Hardcovers & 0 Digital Pack)
- Amazon: $5,188 (183 Podcast Journals sold!)
- Total: $5,188
Podcasters’ Paradise: The #1 Podcasting community in the world!
- Recurring: $17,966 (147 monthly, 1 annual)
- New members: $6,440 (20 new members)
- Total: $24,406
Real Revenue: Turn your BIG IDEA into Real Revenue
- New members: $315 (7 new members)
Podcast Sponsorship Income: $61,220
Free Courses that result in 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: $58,693
*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: $19,234
- Audible: $143
- BlueHost: $165 Step-by-step guide and 23 WordPress tutorials included! Disclaimer: This is my affiliate link and I will receive a commission if you sign up through my link
- Click Funnels: $18,693
- Coaching referrals: $0 (email me for an introduction to a mentor for overall online business or a Podcast focused mentor!)
- ConvertKit: $67
- Disclaimer Template: $166 (legal disclaimers for your website)
- Fizzle Mastermind: $0
- Virtual Staff Finder: $0
Courses for Entrepreneurs: $36,536
- Knowledge Business Blueprint by Tony Robbins: $23,546
- Create Awesome Online Courses by DSG: $7,000
- Digital Course Academy by Amy Porterfield: $194
- Boost Blog Traffic by Jon Morrow: $0
- Opesta by Ethan Sigmon: $316
- Closers On Fire by Dan Lok: $5,480
Resources for Podcasters: $1,880
- Pat Flynn’s Smart Podcast Player: $60
- Podcasting Press: $509
- Designrr: $0
- Tim Paige’s Make My Intro: $0
- Libsyn: $1,266 (Use promo code FIRE for the rest of this month & next free!)
- UDemy Podcasting Course: $45
Other Resources: $1,043
- Amazon Associates: $243
- Other: $800
Total Gross Income in August: $156,316
Business Expenses: $33,879
- Advertising: $1,000
- Affiliate Commissions (Paradise): $4,516
- Accounting: $961
- Cost of goods sold: $2,736
- Fulfillment (Shipwire): $1,863
- Design & Branding: $0
- Dues & Subscriptions: $0
- Education: $161
- Legal & Professional: $75
- Meals & Entertainment: $293
- Merchant / bank fees: $1,378
- Amazon fees: $6,618
- PayPal fees: $483
- Shopify fees: $10
- Office expenses: $610
- Community Refunds: $1,288
- Promotional: $1,308
- Travel: $6,697
- Virtual Assistant Fees: $3,373
- Website Fees: $509
Recurring, Subscription-based Expenses: $2,580
- Adobe Creative Cloud: $100
- Boomerang: $50 (team package)
- Bonjoro: $45
- Authorize.net: $70
- Cell Phone: $247
- Google Suite: $50
- Internet: $80
- eVoice: $10
- Infusionsoft CRM: $309
- Insurance: $648
- Libsyn: $246
- Chatroll: $49
- Shopify: $68
- Linktree: $6
- TaxJar: $19
- Taxes & Licenses: $523
- Zapier: $15
- Xero: $30
- Zoom: $15
Total Expenses in August: $36,459
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 2019: $119,857
Biggest Lesson Learned
Have an open mind
Throughout the month of August I was continuously reminded of why having an open mind is so important.
There are 3 main reasons why I feel having an open mind is critical to your success:
- You don’t know what you don’t know
- You can’t truly understand what you haven’t experienced
- It’s fun to learn and be surprised!
Speaking from personal experience I know it’s easy to throw up walls. I know it’s easy to stay inside of your comfort zone. And I know it can sometimes be way easier to find reasons why something won’t work versus reasons why it will.
But these are all reactions (key word) that can be flipped, because having an open mind isn’t about being reactive; it’s about being proactive.
It’s about showing up, it’s about being ready (and excited) to learn, and it’s about inviting ideas, people, and goals into your life by living as if they’re already true.
A book I’m reading right now that is super focused on being present and that shares a lot of mindset advice (around having an open mind) is Happy Pocket Full of Money.
I highly recommend picking it up, as it’s a great reminder to always have an open mind.
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.