December 2020 Income At-A-Glance
Gross Income for December: $211,169
Total Expenses for December: $32,558
Total Net Profit for December: $178,611
Difference b/t Dec & Nov: +$16,024
% of net profit to overall gross revenue: 85%
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 December Tax Tip: 4 Key Components of the New Relief Bill
Well, Fire Nation, it wouldn’t be 2020 if the year didn’t end with another bombshell bill impacting both individuals and entrepreneurs…
While the entire bill, which is combined with the 2021 spending plan, is over 5,500 pages, there are four key components I think are most important for you to know about.
Here’s a rundown of each.
1. Individual Stimulus Checks
Under the new stimulus bill each individual will receive $600 per person on their return.
So a fully eligible family of five will receive $3,000 total.
As for who’s eligible, it’s the same as the first round of stimulus and will be based on your most recently filed tax return.
Single taxpayers with less than $75,000 AGI, and married taxpayers with less than $150,000 AGI combined, will be eligible for the full amount.
If you make above $75,000 but below $99,000 ($150k and $198k married) you will receive a partial amount. In other words, everything is the same as round one – except the amount.
For those of you who are not eligible based on 2019 tax returns, but would be eligible based on 2020 tax return, you will receive both stimulus payments as a part of your 2020 tax return, so stay tuned.
Also note, there is currently a big push to increase the amounts from $600 per person to $2,000 per person, and based on the current Senate elections it seems likely to happen.
2. Additional Unemployment Benefits
The original stimulus package offered $600 a week in additional unemployment benefits for those unemployed due to Covid.
It also extended unemployment benefits to previously excluded groups like contractors, sole proprietors, etc.
The new plan extends those additional benefits, though it does cut them in half to $300 a week.
3. PPP Round II
Here’s where it really gets interesting for business owners. They are rolling out a second round of the PPP funds.
As with last time, it is fully forgivable (never has to be paid back) if used correctly. And the most amazing part is, even if you already took PPP funds in the first round, you are likely eligible again.
The standard for a second round of forgivable PPP funding is simply that you had a gross revenue decline of at least 25 percent in ANY quarter of 2020 over the same quarter in 2019.
For example, if in Q2 of 2019 your business brought in a total of $100,000 in revenue, and in Q2 of 2020 your business brought in a total of $75k in revenue, you are eligible for another round of PPP funds.
It doesn’t matter if your business had a record year in every other quarter; if you experienced a 25 percent drop in just one quarter you are eligible.
And I’m certainly not condoning taking advantage of money meant to help those most in need, but if you are eligible and you are able to put the money to good use – whether that’s hiring or otherwise – my opinion is you should take it.
4. PPP Funds No Longer Taxable
As we talked about in a previous income report, the IRS originally took the stance that expenses paid with PPP funds would not be tax deductible.
This in essence made the PPP funds taxable income.
They have now waived that rule and the expenses paid with PPP funds are fully deductible. This is a massive tax savings for those who took large PPP loans that were forgiven.
There’s plenty more in this bill, including potential assistance for those behind on rent, healthcare, and so on. But these four components I think will offer the most help to Fire Nation.
Don’t miss out on benefits you are entitled to. Talk to a professional and start taking the steps you need to take.
And lets all hope for a 2021 that doesn’t require any more stimulus packages!
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 December
Fire Nation, we’re SO EXCITED to be celebrating this very special moment with you!
On Christmas morning we got engaged!
How’d John pop the question?
Well, after a morning walk, the 3 of us sat on a rock in the empty lot next to us overlooking the Caribbean and taking in the beautiful view.
We were chatting about life in Puerto Rico, and John asked me if this felt like home.
I said yes.
We continued chatting about life, about how grateful we are for the business we’ve built, the friends we have, our families… and after I looked away quick to give Gus some love, I raised my head back up to John holding a ring.
“Will you marry me?”
My face must have been pretty funny… trying to comprehend what was happening…
This proposal was a complete surprise!
After throwing my head back and flailing my hands in the air (and letting out a few squeals here and there), I said yes!
Shout out to Couple.co for helping John create the perfect ring – a ring with a diamond that was grown in a lab! (so cool!)
Sharing this beautiful news with our family, friends, and our community has been incredibly special. Our engagement has given us even more to be grateful for, and we’re so happy that we get to share it with you!
The Common Path to Uncommon Success Pre-orders and Bulk Buy Packages
Before (and after) the engagement, we were hard at work with the incredible team over at NGNG Enterprises – led by Amber Vilhauer – to create the landing pages for pre-orders and bulk buy packages for John’s upcoming book launch.
Amber is our book launch director and her team has been nothing short of FANTASTIC with helping us create the best launch plan possible. We’re loving the process, and so much of that is thanks to Amber and her team!
December marked an exciting milestone for the launch preparation: pre-orders are available!
What an exciting email to send to Fire Nation :) (if you’re not currently on our email list, be sure to sign up ASAP on our homepage for updates and exciting news like this… and our engagement ;)
Thank you so much to those of you who have jumped on this so quickly – your support means the world, and when it comes to launching a book, pre-orders are EVERYTHING.
If you haven’t had a chance to pre-order your copy yet, head over to UncommonSuccessBook.com. You’ll get access to 5 INCREDIBLE bonuses just for pre-ordering your own copy today!
- Bonus #1: The Journal Trio: The Freedom, Mastery & Podcast Journal shipped to your door! (access to digital packs for those outside the USA).
- Bonus #2: Live AMA (ask me anything)! Ask me any question you have about the book or your journey.
- Bonus #3: “Lost Content”: Access to a behind-the-scenes audio interview with JLD on the journey of launching The Common Path to Uncommon Success.
- Bonus #4: The Common Path to Uncommon Success downloadable PDF Workbook. A crucial companion guide to ensure your success! (Available March 23rd)
- Bonus #5: Video interviews where JLD and many of the 17 all-star entrepreneurs featured in The Common Path to Uncommon Success share bonus content not available in the book. (Available March 23rd)
And if you run a coaching business or mastermind – or you just want a little one-on-one time w/ JLD – consider checking out our bulk buy packages! We’ve spent a lot of time and put a lot of thought into the reward experiences that come with each of the bulk buy packages we offer.
So be sure to check out our bulk buy options and reward experiences today ’cause they won’t be around for long!
Product/Service Income: $183,925
TOTAL Journal sales: 89 Journal Trios (Bonus) + 899 Journals Sold for a total of 1,166 Journals: $30,672
The Freedom Journal: Accomplish your #1 goal in 100 days!
- Total: $9,197 (386 Freedom Journals sold)
The Mastery Journal: Master Productivity, Discipline and Focus in 100 days!
- Total: $6,973 (304 Mastery Journals sold)
The Podcast Journal: Idea to Launch in 50 Days!
- Total: $14,502 (476 Podcast Journals sold)
Podcasters’ Paradise: The #1 Podcasting community in the world!
- Recurring: $16,405 (149 recurring)
- New members: $6,525 (21 new members)
- Total: $22,930
Real Revenue: Turn your BIG IDEA into Real Revenue
- Total: $375
Podcast Sponsorships: $105,912
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: $27,244
*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: $25,081
- Audible: $88
- Bluehost: $165
- Click Funnels: $24,180
- Coaching referrals: $648 (email me for an introduction to a mentor for overall online business or a Podcast focused mentor!)
- ConvertKit: $0
- AWeber: $0
- Fizzle: $0
- Virtual Staff Finder: $0
Courses for Entrepreneurs: $930
Resources for Podcasters: $985
- Pat Flynn’s Fusebox Podcast Player: $0
- Podcasting Press: $257
- Designrr: $0
- Music Radio Creative: $0
- Splasheo: $123
- Tim Paige’s Make My Intro: $0
- Interview Valet: $0
- Libsyn: $367 (Use promo code FIRE for the rest of this month & next free!)
- UDemy Podcasting Course: $38
- Streamlined Podcasts: $200 (Use promo code FIRE for a special discount!)
- RepurposeHouse: $0
Other Resources: $248
- Amazon Associates: $149
- Other: $99
Total Gross Income in December: $211,169
Business Expenses: $30,892
- Advertising: $0
- Affiliate Commissions (Paradise): $852
- Accounting: $350
- Cost of goods sold: $5,116
- Consulting: $80
- Fulfillment: $
- Design & Branding: $0
- Dues & Subscriptions: $67
- Education: $20
- Legal & Professional: $0
- Meals & Entertainment: $369
- Merchant / bank fees: $1,134
- Amazon fees: $10,901
- PayPal fees: $321
- Shopify: $20
- Office expenses: $123
- Community Refunds: $2,576
- Promotional: $385
- Travel: $0
- Virtual Assistant Fees: $7,200
- Website Fees: $1,378
Recurring, Subscription-based Expenses: $1,666
- Adobe Creative Cloud: $100
- Boomerang: $50 (team package)
- Authorize.net: $70
- Bonjoro: $45
- Cell Phone: $50
- Dropbox: $120 (annual subscription)
- Google Suite: $40
- Internet: $44
- eVoice: $10
- Infusionsoft CRM: $241
- Insurance: $89
- Libsyn: $174
- Linktree: $6
- TaxJar: $19
- Taxes & Licenses: $523
- Zoom: $55
- Xero: $30
Total Expenses in December: $32,558
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 December 2020: $178,611
Biggest Lesson Learned
Minding Your Yes’s and No’s
A topic I focus on a lot is time management. Along with that comes productivity, focus, and freedom.
Thing is, most people think that time management is something way too rigid for them – that it will stunt their creativity, or prevent them from being spontaneous.
Time management is the exact opposite.
Time management is the exact thing that will bring you any type of freedom you want.
I was reminded of this when thinking about the book Essentialism – a MUST read for anyone who cares about their time (enter: everyone).
In it, Greg McKeown talks about saying yes to things – essentially, that when you choose to say yes to one thing, you’re also choosing to say no to everything else you could be doing with your time.
Really makes you think about those yes’s, doesn’t it?
As it should.
When you choose to say yes – and in turn also say no to everything else – that’s a big commitment. And of course if you’re saying yes to something you absolutely want to do, that’s great. But if you’re saying yes to avoid an awkward conversation, or because you’re not really sure how to say no, then that’s the wrong reason.
If it’s easier for you to look at it from the flip side, I like to say “what are you willing to say no to in order to to say yes to what’s most important to you?”
Any way you look at it, respect your time and start minding your yes’s and no’s.
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.