January 2024 Income At-A-Glance
Gross Income for January: $146,283
Total Expenses for January: $10,863
Total Net Profit for January: $135,420
Difference b/t January & December: +$5,844
% of net profit to overall gross revenue: 93%
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!
Let’s IGNITE!
**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 December 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 January Tax Tip: Planning your exit strategy
I hope you’re all doing great as we dive into 2024 headfirst!
Today, I want to talk about something crucial for every entrepreneur: planning your exit strategy. There are three essential points that every entrepreneur should keep in mind when strategizing for their business’s future.
1. Always Be Ready
Picture this: You’re cruising along with your business, and then you get a knock at the door. It might be the chance of a lifetime – selling your company or teaming up for a game-changing joint venture.
These opportunities often come unannounced. That’s why it’s vital to keep your radar on at all times. You never know when the perfect offer might come knocking.
2. Complex to Simple
As your business grows, so does the complexity. There will be days when you feel like you’re trying to juggle more balls and trying not to drop any.
The solution?
Break down complex processes into bite-sized, digestible pieces.
Be it for your clients, employees, or potential buyers, remember that simplicity is key.
Take it from us at CPA on Fire – we’ve spent years refining our message to make the complex world of taxes and accounting as simple as possible for our clients. Success lies in simplification.
3. The Power of Story
Sure, you’ve heard it before, but have you applied it to your financials?
Your numbers will always tell a story – about your growth, your profitability, your potential.
Go deep into your financials, spot the trends, and craft a compelling narrative around your business.
Lastly, don’t forget about your other assets – your intellectual property, client lists, and prospect databases – they all add up to your story and can significantly increase your company’s value.
Keep these three pillars in mind as you move your business toward success. And if you’re looking for more insights, check out Chapter 6 of my book, “Financial Superpowers: How to Take Your Business and Personal Wealth to the Next Level.”
You can download a copy on our website, CPAonFire.com, or go to Amazon for a hard copy.
Wishing all of you Fire Nation, a stellar 2024 ahead. Until next time, this is Ron Parisi signing off. Stay fired up, folks!
CPA on Fire offers vCFO 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 at CPAonFire.com.
David Lizerbram’s Legal Tip
FinCEN’s New Beneficial Ownership Information Reporting Requirement
What’s up Fire Nation! David Lizerbram here and I’m excited to be back with another legal tip for you!
I’ve been practicing law for 21 years and have loads of free content over at LizerbramLaw.com. This month’s legal tip is all about a new rule that applies to most LLCs and small corporations doing business in the U.S.
As of January 1, 2024, the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has imposed a new obligation on almost all corporations and LLCs doing business in the U.S. Companies that fall under this obligation (“reporting companies”) must file reports containing identifying information of certain individuals, with a limited number of exceptions.
This is an ongoing obligation – meaning, it’s not necessarily a one-time filing, these reports are required when certain changes are made to the company.
In this post, I’ll go over some of the details.
Which Companies Does This Apply To?
The rule does not apply to companies that fall within certain enumerated exceptions. But most small and medium-size companies won’t qualify for the exemptions.
Exempt companies include larger entities that employ more than 20 full-time employees and have greater than $5 million in annual gross revenue or sales, investment companies, and certain entities registered with the SEC.
So if you are operating a smaller or newer business, these obligations will most likely apply.
When Do We Have to Comply?
If you are starting a new company beginning on January 1, 2024, the filing must be completed within 30 days of the formation of the company. If you have an existing company, you have until the end of calendar year 2024 to comply.
Whose Information Must Be Reported?
Reporting companies must provide FinCEN with information about the company’s “beneficial owners”.
A beneficial owner is an individual who either directly or indirectly: (1) exercises substantial control over the reporting company, or (2) owns or controls at least 25% of the reporting company’s ownership interests. Generally speaking, #1 means that information must be provided for the company’s senior officers (such as CEO, President, COO, CFO, and General Counsel), and anyone who has input on budget approval, major expenditures, or other significant company decisions.
There is no easy, black-and-white rule to determine who is or is not a “beneficial owner”. I would recommend that the requirement be understood to be very broad – if there is a person who might fit any of the requirements listed above, they should be considered a beneficial owner who is subject to the obligations of this rule.
What Information Is Required?
For each beneficial owner, the company must provide to FinCEN:
- The individual’s name;
- Date of birth;
- Residential address; and
- An identifying number from an acceptable identification document such as a passport or U.S. driver’s license, and the name of the issuing state or jurisdiction of identification document (along with a photo of the document).
This information won’t be (easily) available to the public – FinCEN’s website says, “Beneficial ownership information reported to FinCEN will be stored in a secure, non-public database using rigorous information security methods and controls typically used in the Federal government to protect non-classified yet sensitive information systems at the highest security level.”
Once the initial report is filed, there is no annual obligation to update it – rather, it must be updated within 30 days of a change to the information about the company or its beneficial owners. Meaning, if a new senior officer is appointed, or someone else becomes a beneficial owner, or one of the beneficial owners leaves the company, an updated report must be filed.
So, for example, if Sally owns 20% of your LLC, and she gains an additional 5% equity such that she now owns 25%, she is now a beneficial owner, and the company must report that information to FinCEN within 30 days of the change becoming effective.
What are the Penalties for Noncompliance?
According to FinCEN’s website, “a person who willfully violates the BOI reporting requirements may be subject to civil penalties of up to $500 for each day that the violation continues. That person may also be subject to criminal penalties of up to two years imprisonment and a fine of up to $10,000.”
Given the severity of those penalties, it’s recommended that companies review their obligations regarding these reports on at least a quarterly basis, as well as any time the company’s beneficial ownership might have changed.
Much more information can be found on FinCEN’s Beneficial Ownership Information Reporting FAQ page.
If you would like assistance complying with FinCEN’s Beneficial Ownership Information Reporting requirement, please contact me. I’m always happy to talk with members of Fire Nation!
What Went Down In January
Interview of the Month
Top Non-Food Franchise Opportunities for 2024 with Jon Ostenson
3 Value Bombs
- One overlooked aspect of success is focusing on stewardship and family legacy.
- When advising early-stage entrepreneurs, he believes there are three key aspects to consider: mindset, talent, and investment criteria.
- People are crucial to any business, whether the individuals you hire or the franchisor you partner with.
FranBridge Consulting: Receive a free copy of Jon’s new book, Non-Food Franchising, or book a call to chat with Jon directly about franchising opportunities!
Settling into Parenthood (on our own!)
Since before our son, Bo, was born Nov 14, 2023, we’ve had family or company in town!
John’s parents and a family friend arrived on Nov 11, 2023 (Bo’s due date).
Then John’s sister and her family overlapped his parents and were here for Thanksgiving.
John’s side of the family headed back to winter in Maine Dec 3, and on Dec 7 my parents arrived.
My sister came the day after Christmas to overlap my parents.
And my parents left Jan 26.
So the very tail end of January was really our first taste of true parenthood – on our own.
It was so awesome having family in town. Bo getting to meet all four of his grandparents – plus his aunts, uncles, and cousins was really special. But it has also felt really nice to start settling into our own routine together.
Now that we’re almost to the end of the “fourth trimester” we’re feeling more and more confident as parents. We’re also getting to know Bo’s personality and his cues a lot better, which is incredibly helpful.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
January 2024 Income Breakdown*
Product/Service Income: $138,522
TOTAL Journal Sales: $3,411 | Total Journals Sold: 103
The Freedom Journal: Accomplish your #1 goal in 100 days!
- Total: $1,897 (56 Freedom Journals + 4 Digital Packs sold)
The Mastery Journal: Master Productivity, Discipline and Focus in 100 days!
- Total: $1,074 (31 Mastery Journals + 1 Digital Packs sold)
The Podcast Journal: Idea to Launch in 50 Days!
- Total: $440 (11 Digital Packs sold)
Podcasters’ Paradise: The #1 Podcasting community in the world!
- Recurring: $4,678 (35 recurring)
- New members: $3,691 (3 new members)
- Total: $8,369
Real Revenue: Turn your BIG IDEA into Real Revenue
- Total: $150
Podcast Sponsorships: $126,550
Podcast Launch: Audiobook: $6 | eBook: $36
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: $7,761
*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: $6,615
- Audible: $18
- Bluehost: $0
- Click Funnels: $1,592
- CovertKit: $5
- Coaching referrals: $5,000 (email me for an introduction to a mentor for overall online business or a Podcast focused mentor!)
Resources for Podcasters: $140
- Podcasting Press: $0
- Splasheo: $0
- Fusebox: $0
- Libsyn: $95 (Use promo code FIRE for the rest of this month & next free!)
- Repurpose House: $6
- UDemy Podcasting Course: $39
Other Resources: $1,006
- Amazon Associates: $64
- Other: $942
Total Gross Income in January: $146,283
Business Expenses: $7,721
- Advertising: $0
- Affiliate Commissions (Paradise): $23
- Cost of goods sold (Journals): $476
- Fulfillment: $0
- Consulting: $61
- Design & Branding: $0
- Dues & Subscriptions: $73
- Legal & Professional: $0
- Meals & Entertainment: $281
- Merchant / bank fees: $500
- Amazon fees: $1,472
- PayPal fees: $8
- Office expenses: $105
- Community Refunds: $0
- Promotional: $0
- Travel: $272
- Virtual Assistant Fees: $4,450
- Website Fees: $0
Recurring, Subscription-based Expenses: $3,142
- Adobe Creative Cloud: $60
- Accounting: $468
- Boomerang: $90 (team package)
- Authorize.net: $29
- Google: $75
- Cell Phone: $152
- CookieYes: $10
- Chat GPT: $20
- Go Spiffy: $250 (annual fee)
- GoDaddy: $20
- Internet: $68
- Analytics: $70
- eVoice: $13
- Keap CRM: $232
- Insurance: $669
- Libsyn: $209
- Linktree: $6
- Taxes & Licenses: $505
- Patreon: $40
- Skype: $50 (annual fee)
- Shopify: $36
- Xero: $70
Total Expenses in January: $10,863
Payroll to John & Kate: $15,900
In our May 2014 Income Report and our June 2016 Income Report, Josh focuses on how to pay yourself as an entrepreneur. Check them out!
Wondering what we do with all of our net revenue? We share all in our April 2017 Income Report :)
Total Net Profit for January 2024: $135,420
Biggest Lesson Learned
Asking for Support
I knew it as soon as I found out I was pregnant: I was going to have to work on asking for support.
It’s not something I’ve been very good at – especially in my adult life.
And since becoming an entrepreneur, I’ve learned how to figure things out a lot of things on my own.
So in addition to asking for support not being something I was very good at, it also wasn’t something I was used to doing.
I think a lot of entrepreneurs can relate to this.
But since Bo was born I’ve been incredibly intentional about accepting support when it’s offered – and asking for it when I need it.
And I’ve noticed in the instances that I ask for support, people are more than happy to provide it, which makes sense, because if I think about the times my friends or family have asked me for support, I’m happy to help.
Supporting those you care about feels good, and so does being supported.
One thing I’ve learned about asking for – and offering – support is the more specific you can be the better (and easier) for everyone involved. As an example, if I want to offer support to someone, instead of saying “I’m available to help with whatever you need!”, I can say, “I’d love to bring over dinner for you – when is a good night for me to do that?”
If you can relate to the struggle of asking for support, then I encourage you to try asking for it today. Even if it’s a small thing, just ask. We all need support, and I’ve come to find that being able to ask for it shows strength.
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.
