August 2020 Income At-A-Glance
Gross Income for August: $156,959
Total Expenses for August: $32,789
Total Net Profit for August: $124,170
Difference b/t Aug & July: -$13,270
% of net profit to overall gross revenue: 79%
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: Payroll Tax Deferral: What You Need to Know
Another month in 2020, another new tax bombshell to discuss!
This time it’s President Trump’s payroll tax deferral.
As with nearly all the stimulus and tax programs in 2020, there’s a lot of confusion on what this means and how it helps. So let’s take a closer look at the details.
First of all, what exactly constitutes payroll taxes?
A lot of people think this will mean ALL the taxes that come out of their paychecks. But the true payroll taxes for the purposes of this executive order are simply the social security and medicare taxes that come out of each paycheck.
This amounts to roughly 7.6% of your gross pay. So for those eligible (which we will discuss shortly) you will reduce the taxes on your paycheck by about 7.6%.
Sounds good, right?
Be careful, there’s some crazy fine print going on here.
First, notice the wording used… “deferral”.
This means that it is not a tax cut – meaning as of now you will have to pay any taxes you “saved” back.
Here’s how the plan will work as of now.
Eligible employees will have the option to not have social security and medicare taxes withheld on their paychecks from September 1, 2020 through December 31, 2020.
BUT, if you choose that route, here’s the catch: those taxes, as of now, will need to be paid back in the first four months of 2021.
And any delay in paying them back will result in you being hit with penalties and interest.
It’s possible congress will vote to make the tax deferral a permanent cut, but as of now they are not, and you should plan accordingly that they will need to be paid back in 2021.
Who’s eligible to accept this mess of a tax deferral?
You are eligible to defer these payroll taxes on any pay period from September 1, 2020 through December 31, 2020 that is less than $4,000 bi-weekly.
If you are paid weekly, that comes out to $2,000 per weekly pay period.
So if you make less than $4,000 one period and more the next, then you are eligible for the deferral on the first one and not the second.
It’s not a one-time qualifier or disqualifier.
A Final Word
Be careful here. There are so many unknowns.
- What happens if you take the deferral and then lose your job and can’t pay it back?
- What happens if you decline the deferral and then it is made permanent?
- How will this impact self employment taxes, which are social security and medicare taxes applied to self employed income?
The truth is, this is a complete mess and you need to tread lightly.
Personally, I would not take the deferral until more guidance is issued.
Do I think that congress will ultimately vote to make these permanent to avoid the disaster?
But I think we have all seen this year more than ever that depending on congress to make the rational move doesn’t always work out well.
My best advice is to talk to your tax advisor and make the decision most appropriate for your situation.
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
The Common Path to Uncommon Success
Exciting progress continues with John’s upcoming book: The Common Path to Uncommon Success! For regular behind-the-scenes updates, be sure to sign up for the interest list!
Hey Fire Nation, John here! I’m excited to provide an update on where we’re at with the book, and how it’s been working with a publisher thus far. As you know, everything I’ve published up to this point – with the exception of The 100 Day Goal Journal with Sterling – has been self-published.
First, here’s a quick overview of where we’re at:
- The Common Path to Uncommon Success is set to hit bookshelves spring 2021
- First draft was handed over to the editors on August 14th with a total of 70,514 words!
- John teamed up with 17 INCREDIBLE entrepreneurs for each of his 17 chapters and each shared their genius on their topic of expertise
I’m working with HarperCollins to bring this book to life, and I must say, working with one of the world’s leading book publishers has been exciting!
I am looking forward to seeing how the process of traditional publishing unfolds and am committed to keeping you updated every step of the way!
Don’t forget to sign up for behind-the-scenes updates and to be the first to hear about new developments with The Common Path to Uncommon Success!
Puerto Rico to Maine
A LOT has happened in 2020. Looking back on the past 6 months almost seems unreal. We’ve canceled a 23-day river cruise through Europe, multiple trips we had scheduled for conferences, and also side trips we had planned to visit family and friends.
Right now, we’re supposed to be in Fiji celebrating our Top 10 Status for this year’s Knowledge Business Blueprint launch.
Since nothing has happened as planned this year, we decided to take this opportunity to refocus.
- Refocus on our business.
- Refocus on our priorities.
- Refocus on our families.
This led us to decide to extend a trip we had planned to Maine instead of canceling it.
So in mid-August we hopped on a plane with our masks and supplements, and we were off!
Our itinerary in Maine was varied, and we were excited to hop around the state a bit and enjoy the last days of summer.
We started with 1 week at The Shaq on Kennebunk Pond. This was our time to sit back, enjoy family and relax.
But first things first: we went to an urgent care to get a Covid test, and with the efficiencies in Maine, 10 hours later we got our results back: negative!
After a lot of hugs, we settled in, and over the next week we did multiple pond walks, daily swims, waterskiing, boating, paddle boarding, card games, deck convos, bbq’s, and a lot of reading!
After our week on K Pond we made our way North to Portland to stay in an AirBNB right around the corner from John’s sister and her family.
The next 5 days were filled with walks into the Old Port via the Narrow Gauge Trail, multiple corn hole challenges, a lot of Monopoly Deal with the kids, and some great QT all around.
Our final stop: Moosehead Lake, where we met up with John’s childhood friend and his family for a week up north.
We hiked Kineo, Big Moose, and Eagle Rock – all incredible hikes that are challenging and oh-so-rewarding!
We also spent a few days at an AirBNB around the bend with John’s dad, sister, and her family for more QT, a lot of cards, and a lobster bake!
We were supposed to have a pontoon boat for 2 days while we were in our AirBNB, but unfortunately the weather wasn’t going to make it easy. We ended up ditching the boat and instead opted for the ferry over to Kineo to do the hike for a second time.
Our return to Puerto Rico was smooth, and we’ve already been into a clinic to get our Covid tests. Negative results were back within an hour.
Product/Service Income: $135,402
TOTAL Journal sales: 675 Journals for a total of $19,813
The Freedom Journal: Accomplish your #1 goal in 100 days!
- Total: $7,444 (274 Freedom Journals sold)
The Mastery Journal: Master Productivity, Discipline and Focus in 100 days!
- Total: $6,614 (234 Mastery Journals sold)
The Podcast Journal: Idea to Launch in 50 Days!
- Total: $5,755 (167 Podcast Journals sold)
**Tune in to our income report this month to hear how we increased our Journal sales on Amazon! Hint: TurnKeyProductManagement.com/fire**
Podcasters’ Paradise: The #1 Podcasting community in the world!
- Recurring: $15,346 (162 recurring)
- New members: $3,643 (19 new members)
- Total: $18,989
Real Revenue: Turn your BIG IDEA into Real Revenue
- Total: $300
Podcast Sponsorship: $96,120
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: $21,557
*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: $13,703
- Audible: $102
- Click Funnels: $13,395
- Coaching referrals: $148 (email me for an introduction to a mentor for overall online business or a Podcast focused mentor!)
- ConvertKit: $58
- Virtual Staff Finder: $0
Courses for Entrepreneurs: $6,820
- Knowledge Broker Blueprint by Tony Robbins: $3,761
- Create Awesome Online Courses by DSG: $97
- Crush it w/ Challenges by Pedro Adao: $2,962
Resources for Podcasters: $536
- Pat Flynn’s Fusebox Podcast Player: $0
- Podcasting Press: $73
- Designrr: $0
- Splasheo: $198
- Tim Paige’s Make My Intro: $0
- Libsyn: $210 (Use promo code FIRE for the rest of this month & next free!)
- UDemy Podcasting Course: $55
Other Resources: $498
- Amazon Associates: $116
- Other: $382
Total Gross Income in August: $156,959
Business Expenses: $22,511
- Advertising: $0
- Affiliate Commissions (Paradise): $1,421
- Accounting: $961
- Cost of goods sold: $3,461
- Consulting: $100
- Fulfillment: $0
- Design & Branding: $0
- Dues & Subscriptions: $66
- Education: $86
- Legal & Professional: $187
- Meals & Entertainment: $1,397
- Merchant / bank fees: $172
- Amazon fees: $7,135
- PayPal fees: $125
- Office expenses: $881
- Community Refunds: $2,285
- Promotional: $0
- Travel: $574
- Virtual Assistant Fees: $3,600
- Website Fees: $60
Recurring, Subscription-based Expenses: $10,278
- Adobe Creative Cloud: $100
- Boomerang: $50 (team package)
- Authorize.net: $70
- Bonjoro: $45
- Cell Phone: $0
- Google Suite: $60
- Internet: $100
- eVoice: $10
- Infusionsoft CRM: $241
- Insurance: $89
- Annual Insurance Fee: $7,559 (business + cyber ins)
- Libsyn: $190
- Linktree: $6
- TaxJar: $19
- Taxes & Licenses: $523
- SEO & Marketing: $1,131
- Zoom: $55
- Xero: $30
Total Expenses in August: $32,789
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 2020: $124,170
Biggest Lesson Learned
The Last Dance
I just finished watching the Michael Jordan documentary – if you haven’t checked it out yet, I highly recommend it!
There were hundreds of things Jordan talked about throughout the 10 episodes that brought back memories from my high school basketball days, as well as reminded me of the drive, discipline, and love required to be the BEST.
One quote in particular stood out to me. Towards the end of the series he said:
“Why would I think about missing a shot I haven’t even taken yet?”
As entrepreneurs, it’s easy to let the imposter syndrome and doubts and fear creep in. Oftentimes we let these things cripple our progress and prevent us from creating what we can see so clearly.
I now have this quote up in my office – to remind me that fear and doubt don’t have to cripple me, and I certainly don’t want them determining my actions. I hope this quote can help you, too.
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.