Every month we put together an income report to share a behind-the-scenes look at the ups and downs of running a 7-figure business. In full transparency, it’s not easy – but it IS possible. Through hearing about our mistakes, lessons learned, and our wins, we hope to inspire and motivate you to take action in your business with just one step forward every single day. For our full income report, visit EOFire.com/income95, and IGNITE!
CPAOnFire.com – Accounting, Tax & CFO Services for Entrepreneurs
LizerbramLaw.com – Business Attorney & Legal Strategist.
3 Value Bombs
1) Respect everyone, fear no one.
2) The general rule of thumb is that your website terms should be reviewed and updated on an annual basis.
3) If you want to become better at something, you have to put in the reps.
Kevin Anderson & Associates: Are you finally ready to publish a book the right way? For a limited time, KAA is offering Fire Nation a free 90-min consultation to discuss writing and publishing your book! Visit KAWriting.com/fire to book yours today!
**Click the time stamp to jump directly to that point in the episode.
[00:00] – Income review
- Gross Income for July: $280,608
- Total Expenses for July: $18,935
- Total Net Profit for July: $261,673
- Difference b/t July & June: +$86,370
- % of net profit to overall gross revenue: 93%
[02:30] – Josh’s July Tax Tip: IRS and Tax Audits
- There are five little letters that are scary enough to send shivers down even the most diligent tax-payers spine: AUDIT
- Your chances of being audited are incredibly low.
[04:31] – There are three different types of audits
- Correspondence Audit
- Office Audit
- Field Audit
- The general rule of thumb is that these terms should be reviewed and updated on an annual basis.
[14:37] – What Went Down In July: A Trip to Maine
- Half of our July was spent in the beautiful state of Maine visiting family and friends.
- Check out some of our trip pictures at EOFire.com/income95!
[21:21] – Prepping for Podcast Movement 2021 in Nashville
- Kate did the opening keynote and she did AWESOME!
- We will share a full recap in our August 2021 Income Report.
[23:40] – July 2021 Income Breakdown
- Gross Income for July: $280,608
- Total Expenses for July: $18,935
- Total Net Profit for July: $261,673
- Difference b/t July & June: +$86,370
- % of net profit to overall gross revenue: 93%
[25:09] – Biggest Lesson Learned: Put in the Reps
- If you want to become better at something, you have to put in the reps!
Shake the room, Fire Nation, JLD here, and welcome to Entrepreneurs On Fire july, 2021 Income Reports. We have a doozy for you today. Our gross income for July was $280,608. Our total expenses were 18,935 for a net profits of $261,673 for an $86,000 increase from the month prior. And the most crazy thing is we did break a personal record with our percent of net profit to overall gross revenue at 93%, only 18,000 plus expenses for over $280,000 of gross income.
0 (1m 31s):
When we get back from thanking our sponsors ever consider starting your own business, Helium10 can help with Helium10. You can become a seller on Amazon. The world's largest online retail sites with minimal startup costs. Learn more about Helium10 plus get 50% off your first month of a Helium10 platinum accounts. When you visit Helium10.com/fire. Fire Nation, are you finally ready to publish a book the right way Kevin Anderson and associates can help for a limited time, they're offering Fire Nation a free 90 minute consultation to discuss writing and publishing your book in just six months. Visit KAWriting.com/fire to schedule your free 90 minute consultation today.
0 (2m 16s):
That's KAWriting.com/fire. All right. All right. Fire Nation. We have a doozy of an income report for you here today. Lots of learnings, lots of awesomeness. So let's start off with Josh Bauerle. Mr. CPA On Fire, take it away. There are five little letters that are scary enough to send a shiver down. Even the most diligent, taxpayer spine, a word that's so frightening. It can cause a panic. Just seeing a letter in the mail from the IRS, the word is audit. It almost makes me wince just saying it out loud, right? But Fire Nation is that of course, but for many reasons, having an audit seriously impact your life in a negative way is extremely.
0 (3m 1s):
First of all, your chances of actually being audited are incredibly low, probably significantly lower than you were even thinking right in 2018, which is the latest year that we have statistics available.
1 (3m 13s):
Your chances of being audited. If your adjusted gross income is between 75 and a hundred thousand dollars is just 0.4, 5%, right? Not even a half of 1% of the people in that income range get audited. Those who hit the adjusted gross income level of a hundred thousand to $200,000, their audit risk goes down a little bit, even more to 0.4, 4%. It's not even until you're making over $500,000 a year that your audit changes get above 1%. And even then it's just barely above one. Even at the very highest level they show, which is making more than $10 million per year. Your chances of audit are just 6.6%.
1 (3m 54s):
Okay. So get a group of your hundred closest friends. And half of one of you will get audited. That's how low those combinations that those percentages are. And is it, is that way due to a combination of reduced funding with the IRS dramatically reduced staffing with the IRS, any significantly higher workload at the IRS that they're trying to, to finish some lower level tasks, right? So their capacity to audit right now is extremely low, probably even lower than those numbers from 2018. All right, but not only are your chances of ever being audited low, even if you are one of the unlucky few wants to be audited is probably not going to be as bad as you think. All right? So you see there's three different types of audits.
1 (4m 35s):
And no, most of us were probably picturing the, what we see in movies and TV. And there's all these IRS agents with guns on their hip. And they're combing through every financial document you've ever owned. And they're interviewing everyone who's ever known you when your third grade teacher and trying to find out if you're a tax cheat, right? But that's generally not the way it is. 75% of IRS audits are what they call simple correspondence audits. All this means is the IRS just mails you a little letter. They ask you to verify a small portion of your tax return and you respond. For example, they may ask you to send proof of the 4,000 miles you wrote off as business mileage on your tax return. If that's the case, you simply mail back a copy of your mileage log, maybe a brief explanation of how you got to that number and assuming it all lines up, you're going to be good to go.
1 (5m 20s):
They're going to not ask any more questions. You're not going to have any money, easy and painless. 25% of audits consists of what they call office audits, where you go into the IRS office and they ask you maybe if maybe they're concerned with more portions of the tax return, right? They say, we want to look at this, this, this, and this, all you're doing is bringing in those documents and showing them it's still, it's a little scarier. You're in the IRS is audit. I get it. Our IRS has office, but it's still, it's not a big deal. All right. The final one by far, the most rare is what they call field audits. And that's the TV version you see with the IRS agents at your house or at your office. And they're coming through probably a ton of records and verifying most of your tax return.
1 (6m 2s):
If that happens, there's probably very serious questions about your return that they need answered. And they probably suspect fraud. But again, if it's less than a half percent of the people around you are getting audited and maybe 1% of them get this fueled audit, your chances of ever having this happen are so low. It's not even worth worrying about. Okay? So your chances are low. The chances that if you do have it, it's a serious auditor low. And finally, the biggest reason not to fear an audit is that you can fully protect yourself, right? You have full control over how this audit ends up. All you have to do is prepare your return, right? Keep the proper records and don't cheat on your taxes, right?
1 (6m 42s):
The number one way, most people are selected for one of those correspondence audits is to just do something incorrectly on the return and usually comes on the income side, right? So maybe you received a 10 99 from a client and you forgot to include that on your return. You still claim the income. It's still on your schedule C but you forgot or didn't know that you had to separately claim that 10 99 to show that you received it, right? Because every time someone sends you a tax document, they also send a copy to the IRS. The IRS wants to see that on your return. That happens all it is. You mail them back an explanation. You say, Hey, I actually claimed this income on my schedule. See I forgot to include it separately on the tax return. Here it is with the adjustment.
1 (7m 23s):
And as long as everything lines up, Eric is going to say no harm, no foul. You don't notice anything. It's all over quickly, right? It all comes back to kind of what my basketball coaches in high school used to say all the time, respect everyone, fear no one, right? That's what they told us about. Every opponent we ever played, respect everyone, fear. No one to me, this is the exact attitude we should have with the IRS. They have to be respected, right? They can make our life a living hell if they want to. But the chances of that ever happening are extremely low. As long as we do the right thing, right? But if you're on the up and up, there's no reason to fear them, respect them. Don't fear them move on with your life. And of course it never hurts to have a good tax repair in your corner. In case something does come up as always Fire Nation can reach out to me directly.
1 (8m 4s):
Joshua CPM, fire.com or check out all the free resources we have on CPM,
0 (8m 9s):
Fire.com as always. Thank you, Josh dropping value bombs, brother. Now let's not lose any momentum Fire Nation. Let's move on to David Lizard Brands, July Legal tip. Okay. Hey,
2 (8m 19s):
2 (9m 6s):
2 (9m 57s):
2 (10m 39s):
2 (11m 22s):
0 (11m 56s):
Thanks. All right, Fire Nation. We get into details about our month in Maine, as well as the total income breakdown, as well as expenses. Kate's value bomb. At the end, when we get back from thanking our sponsors Fire Nation, do you realize the value being a published author brings to your business? As one of myself, I can honestly say a lot. So if you've ever considered writing a book, but feel like you don't have the time writing ability or idea to make it a success, then I've got great news for you. Kevin Anderson and associates is an industry leading all inclusive book writing firm that can help you go from no book to publish author. And as little as six months, Kevin team has launched 19 number one, New York times bestsellers and hundreds of national bestselling books.
0 (12m 39s):
You'll be able to work directly with those who helped launch the careers of the biggest names in the book business, including Bernay Brown, Simon Sinek, Robert Kiyosaki, and many more. It doesn't matter where you are in the book. Writing process. Kevin's team will guide you through every step of writing your book and developing a customized publishing strategy to exceed your wildest expectations. In as few as eight hours of your time. Kevin Anderson and associates can gather all the Intel. They need to write and publish your book the right way in as quickly as six months. If you're ready to establish yourself as the authority in your area of expertise, Kevin is currently offering you Fire Nation, a free 90 minute publishing consultation call visit KAWriting.com/fire to schedule your free consultation today available for a very limited time, that's KAWriting.com/fire.
0 (13m 27s):
One of the huge benefits of starting your own business freedom. Imagine being your own boss and creating a business that gives you the lifestyle freedom you've always wanted. And Helium10 knows how to do it. How become an Amazon seller. Anyone can do it in over half. The products sold on Amazon are sold by everyday people using fulfillment by Amazon or FBA. With FBA, Amazon handles a complicated and expensive parts of running a business like receiving inventory, warehouse, storage, shipping, and even customer returns. Everything else your Amazon business needs can be solved by Helium10 helium tens. All in one software suite is designed to help people just like you launch, build and manage a profitable business on Amazon, no invention or big idea required. Helium10 has all the tools and trainings that guide you on your journey.
0 (14m 10s):
Right now I'm using Helium10 to help manage our three journals on Amazon. And our team is loving it. Start an e-commerce business that taps into Amazon's massive customer base and shipping expertise today with this incredible offer from Helium10, get 50% off your first month of a Helium10 platinum account. When you visit Helium10.com/fire. That's Helium10.com/fire. Don't wait to get 50% off your first month. Visit Helium10.com/fire. All right, we are back and as promised Fire Nation, we will be talking about what went down in July, specifically our month in Maine, or at least the trip that we took to Maine. And, you know, this is a place that Kate had spent zero in before she met me.
0 (14m 53s):
And now she spends quite a bit of time there over the past decade or so. So I'm going to let Kate say what's up cause you haven't heard her lovely voice yet. And to start us off with a little recap on the trip to
3 (15m 6s):
Maine what's up Fire Nation, excited to be back on the mic with you to talk about what went down in July and half of our July was spent in the beautiful state of Maine, which is the way life should be according to Mainers. And we got to spend some great time there visiting family and friends. We didn't quite have the weather we were hoping for. Usually we do maintenance September and they had some weird things going on this July. I mean, we literally watched it Hale one day when we were there. So unlike our typical mainstays, where we're doing a lot of time on the dock, being in the lake, all kinds of outdoor activities, I mean, we still got in our fair share of outdoor activities, for sure.
3 (15m 58s):
We got to go hiking, swimming, biking, and we really span the state and multiple states. If, if we're being technical about it while we were there, we got to spend some time in Portland, Kennebunk. We went down to York, we went through a Portsmouth and finally we made our way up to bar Harbor was my first time ever in bar Harbor, which is kind of hard to believe. I can't believe we never made it up there when we lived there. John, I'm sure you, well, I know that you've been to bar Harbor before, but oh my goodness. Such a cute little town and yeah, I just feel like we got to really enjoy every piece of what Maine has to offer.
3 (16m 39s):
We saw so much family, we got to go visit multiple aunts and uncles spent a lot of time with your parents, got to hang with your sister and Justin and the kids. That's who we went to bar Harbor with actually. And man, I, I, yeah, our weather in bar Harbor was pretty awesome. I would say we have some great pictures over on the income report where you to check out EOFire.com forward slash income, 95. John, what would you say about our time in Maine? I
0 (17m 9s):
Think it just goes down as one of those perfect trips, as far as you know, when you're going, going to be home for a couple of weeks, a year or a couple of weeks, a couple of times a year, which kind of seems like our rhythm. You just really want to max it out and you really want to see everybody and be all over the state and visiting the cool part. So I got to see some of my best friends hang out at their places, got to see tons of family. Like you mentioned, aunts, uncles, cousins, Marcy had her 40th birthday party, which is kind of what we planned around. Marcy's my sister. So we planned around that trip and the trip around that specific party. And that was great. Cause that was kind of like a gathering place for everybody that we haven't seen in a long time that actually kind of spurred a lot of our future, more personalized visits.
0 (17m 50s):
We're like, oh look, we can drive down to your place and have coffee and this and that. And so it was really just a great, great trip overall for all the reasons getting to visit the grandmother, the parents a lot. And of course my sister, brother-in-law her niece and her, my niece and nephew, her son and daughter, and then just getting all over the state to visit some great places like bar Harbor, York, Portsmouth, New Hampshire, and all of that jazz. So overall it was an absolute great track. And you know, one thing that is kind of want to mention about this that I think is kind of cool is for a lot of years when we would do these income reports and I'm sure you remember this, Kate, we, we would talk about these long trips that we would take and how, you know, we would, so quote unquote, keep up with work.
0 (18m 33s):
Cause we would still open up our laptops for a couple hours a day and do emails and do a little bit of this, a little bit of that to make sure the business was still running and doing what it had to do. So we were still working on these quote-unquote vacations to keep the, the, the trains on the track, so to speak. But you know, a lot of people were just like, man, like that kind of lifestyle, freedom is just so far from the, I just could never picture my job or having an opportunity where I could do what you're doing, able to continue to make revenue and grow your business while you're on vacation. Like while you're sitting on a dock in Maine sipping coffee in the morning, like, and just kind of whipping out a little bit of work before you kind of go on with your, you know, enjoyable vacation and frankly things have changed.
0 (19m 18s):
And there's so many people now that now can see for the first time that, wow, I have an opportunity to go virtual within my workplace or at least maybe work like two or three days a week in the office and two or three days a week out of the office, or maybe, you know, have this just a more virtual option because the whole world has had to go more virtual. I mean, I even look at my dad in Maine. Who's a lawyer he's 70 years old. I mean that, that's an example of a person that pre pandemic, like he's never going to experience any real lifestyle freedom when it comes to, he has to be in a courtroom at a certain date. He has to be in his office for clients to come and visit.
0 (19m 59s):
But now he's literally doing virtual hearings. He's literally doing virtual trials. He's having all of his clients who never took the time or energy to even, you know, become competent in things like zoom or FaceTime or whatever. Now they are. So now he's able to have a lot of meetings doing that stuff just because it's more accessible because it was kind of forced upon everybody. So I think it's just really cool to see how the world's evolved. In some ways, since we started doing these income reports and talking about these trips and these vacations where now so many people are able to experience this stuff on smaller, similar, or even sometimes larger levels where there's now just people that have been like, you know what, I'm just going to be a digital nomad, travel the world, even though I'm so working for potentially this corporate client that the all they really have, you know, mandated is that I'm logged in for eight hours a day doing X, Y, and Z.
0 (20m 51s):
So really cool stuff. All in that area, the trip was spectacular. I definitely recommend going to eofire.com/income at 95, we have some spectacular pictures of my niece, my nephew, my sister, and brother-in-law of course, you know, us on the bike, Kate and myself on by the ocean. Some really cool photos overall that, you know, we always like to kind of include in the income reports to encourage people to get over there. And overall the trip was spectacular. And when we got back, we had to prep for a little podcast movements in person in Nashville, Tennessee, they're expecting over 2000 people live.
0 (21m 32s):
So we're like, whoa, what's going to happen now, of course, we'll give you the full breakdown in the next income report. Cause that actually all happened in August, but spoiler alert, Kate Lynn Erickson was the opening keynote. Mark Cuban was one of the closing keynotes. So you can see like just how awesome it is that Kate is being put up on these types of stages and rocking it in front of this number of people, which was thousands of people. So little spoiler alerts. We talk about that next month as we kind of ended our month of July prepping for that trip and getting all ready to rock and roll and Kate, anything you want to add about Maine or our prep for Nashville before I get into the income breakdown?
3 (22m 16s):
Well, one, I'm very excited to recap Nashville because there was just so many great takeaways tips. It was such an amazing experience being on stage and being at an in-person conference again was definitely a first since 2019 kind of wild. And I'm looking at the picture of you at Fort Knox. We forgot to mention that we made a stop at Fort Knox, got to go up that bridge elevator deal and see such a beautiful side of Maine. And I'm looking at you holding Dunkin donuts, which makes me very jealous right now. And I'm also thinking about how incredible that sandwich was that we got up Panera like seven times when we were
0 (22m 59s):
There. Yeah, I'm the Mediterranean for the, when anybody who's close to Panera, don't take that for granted. And just to be clear, this isn't the Fort Knox in Kentucky, which most people relate Fort Knox to this is a Fort Knox up on the Penobscot river and down east Maine. So look it up, Google it, if you want to just Google Fort Knox Maine, and you'll get to see what K9 experience with this 400. And I want to say 87 foot elevator that went up to a lookout of all of means greatness, so awesome stuff all around. Anything else, Kate, before we break it down, not a lovely July, 2020 ones, income breakdown, our product and service income was $241,000.
0 (23m 49s):
About $7,000 of that was journal sales. We did almost 200 journal sales in the month of June lie. Our paradise members brought it over $17,700. We did $216,000 in podcast sponsorships, which is just through the roof. We just had a couple of doozies that came through that month and it was a, a bigger month than we're expecting going forward, but a lovely to see of course, and our affiliate income was 39,000 with a big check from Tony and Dean Tony Robbins. That is in Dean Grasiozi as we were affiliates for their promotion of KBB.
0 (24m 31s):
And we got a couple of other big checks, of course, from ClickFunnels, just under $10,000. And then we had business expenses, which we have been doing a fantastic job keeping incredibly low, 18,000 9 35 for our net profits, which, you know, kept us at that 93 percentile, which I mentioned the intro of $261,673. So banner month probably gonna end up being the best of the year. And I'm stoked about that, but who knows, there's still some time left. We'll see, but Kate, why don't you take us home?
3 (25m 9s):
Biggest lesson learned and July is put in the reps. I know you've heard John say this many, many times by our nation and it is so true. If you want to become better at something you have to put in the reps and this is true of all the stuff. And it's a great answer to give yourself to most questions that come up specifically in business is what we're talking about here. But again, in life as well, questions like how do I become a better speaker, improve my interview skills, create better relationships, get in touch with experts in my industry or my niche. How do I get to work with people who I admire and how do I get people to notice my work?
3 (25m 52s):
You do all of this by putting in the reps. And this was so evident to me in July. Since, as I mentioned before, I spent a good portion of my time in Maine putting in the reps for my talk out podcast movement. When we were visiting, when I was going on runs and jogs and walks. And when I was out on the lake, I was constantly prepping for my talk at podcast movement. This being my first keynote ever, I knew I wanted to be fully prepared and feel comfortable with the content I was going to end. Well, this wasn't my first time on stage. It was by far the biggest stage I've ever been on. Plus this was a brand new presentation that I hadn't shared before.
3 (26m 33s):
So typically the other talks that I've done at podcast movement and other conferences, these are talks that I've given maybe a couple of times before, even if it's just been in a virtual setting, this was a brand new presentation. So putting in the reps helped me feel a lot more comfortable and confident about my time on stage. And I'm so glad that I've heard this answer to many of my questions many times before put in the reps,
0 (27m 4s):
Fire Nation, what is it that you want to become great at? What is it that you want to Excel at? Putting in the reps? There is literally no other way to become the quality of an individual that you want to be at that task at that service, whatever that product is that you want to create until you are putting in those reps. So keep that in mind, great lesson from Kate. And we will both catch you on the flip side ever considered starting your own business. Helium10 can help with Helium10. You can become a seller on Amazon. The world's largest online retail sites with minimal startup costs.
0 (27m 44s):
Learn more about Helium100 plus get 50% off your first month of a Helium10 platinum accounts. When you visit Helium10.com/fire. Fire Nation, are you finally ready to publish a book the right way Kevin Anderson and associates can help for a limited time, they're offering Fire Nation a free 90 minute consultation to discuss writing and publishing your book in just six months. Visit KAWriting.com/fire to schedule your free 90 minute consultation today. That's KAWriting.com/fire.
1) The Common Path to Uncommon Success: JLD’s 1st traditionally published book! Over 3000 interviews with the world’s most successful Entrepreneurs compiled into a 17-step roadmap to financial freedom and fulfillment!
2) Free Podcast Course: Learn from JLD how to create and launch your podcast!
3) Podcasters’ Paradise: The #1 podcasting community in the world!