July 2024 Income At-A-Glance
Gross Income for July: $170,866
Total Expenses for July: $12,502
Total Net Profit for July: $158,364
Difference b/t July & June: +$46,443
% 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 July 2024 Tax and Accounting tip brought to you by CPA on Fire.
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 July Tax Tip: Traditional Rearview Financial Reporting v. Proactive Forward-Facing Financial Insights
As we approach the second half of 2024, it’s amazing how quickly this year has passed. This month, I want to highlight the crucial difference between traditional rearview financial reporting and proactive forward-facing financial insights. This accounting approach aligns best with aspirational entrepreneurs’ growth mindset.
What is Rearview Accounting?
Traditional rearview accounting often falls short for business owners. It is usually compliance-based, meaning you receive last month’s financials well into the current month. By the time you get those numbers, you’re already weeks behind, still unsure of what worked and what didn’t. This outdated method leaves you with little room to act in real-time.
The beauty of Forward-Facing Financials
Now, let’s turn the tables. Forward-facing financials involve creating forecasts and budgets that align with your long-term business goals. As the month progresses, you continually measure your actual performance against these targets. This approach keeps you focused on where you want to be—whether it’s a year from now, three months down the road, or even further into the future. Instead of dwelling on the past, you’re looking ahead and making necessary adjustments.
One of our new CPA on Fire clients experienced a transformative shift by adopting forward-facing financials. They gained so much clarity on when to invest in advertising, when to hire key team members, and how these decisions may impact their growth. With a three-year revenue forecast and a rolling 12-month expense budget, they visualized the future of their organization, including their org chart and marketing strategy. This transition significantly boosted their confidence and led to outstanding performance.
Now is the best time to leave rearview accounting behind and start shaping a more successful future for your business.
Until next month, Fire Nation, go out there and crush it!
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 do for you and your business. Learn more at CPAOnFire.com.
David Lizerbram’s July Legal Tip
Business Partnership Basics
A partnership is the default type of business arrangement between two or more people.
If you’re working with someone, and you haven’t formed a Corporation or LLC, then you are a partnership. Partnerships can be a very simple and cost-effective type of business arrangement, but there are certain risks to be aware of.
Types of business partnerships
There are two basic kinds of business partnerships:
- General Partnerships, and
- Limited Partnerships
Most partnerships are General.
This means that the partners all participate in the running of the business and assume liability for the company’s debts and obligations. So if the company is sued, all partners may be legally liable.
Limited Partnerships require specific contractual language to set up.
In an LP, one or more of the partners are actively involved in the business and have liability for the company’s debts. These people are sometimes called the “General Partners” (yes, that’s a bit confusing) or “Managing Partners.”
The other partners are sometimes called “Silent Partners.” They have an investment in the business, but in exchange for limited liability, they have less say over the day-to-day running of a business.
Having a written partnership agreement
Regardless of what type of partnership is right for you, it’s always best to have a written Partnership Agreement, and it’s recommended that you work with a business lawyer who can help draw up the document.
The Partnership Agreement should cover at least the basic terms of the partnership, such as the percentage of ownership (50/50 or otherwise), each partner’s responsibilities, compensation, and how any disputes will be resolved.
Partners should also create a Buy-Sell Agreement to be used in case one or more partners decides to leave – or has to leave due to an emergency.
Sometimes this Buy-Sell language is incorporated into the Partnership Agreement, and sometimes it’s a separate document. In either case, if you have a solid plan for how your business relationship will come to an end, it’s more likely that it will be a long and successful one.
Also, consider obtaining “Key Person Insurance” to fund the Buy-Sell Agreement. This way, if something unexpected happens to your partner, you won’t have to come up with the cash to buy out her share of the business.
If you have questions, please contact me. I’m always happy to talk with members of Fire Nation!
What Went Down In July
Interview of the Month
The Key to Sound Success with Mike & Izabela Russell
3 Value Bombs
- Everything starts with passion in every industry.
- Attention to detail is incredibly important.
- If you do a lot of little things, you can never do anything big.
Music Radio Creative Website – The Largest Professional Voice Over Agency In The World.
Headed to Maine!
At the end of July we embarked on our first trip as a family of 3! While we would have loved for Gus to join the party, we decided to have our house manager hold down the fort (and watch Gus) while we’re away.
Before Covid hit, we always spent about three months traveling Europe during hurricane season. Typically we would leave mid-August and come back early November.
While we’re definitely excited to get back over to Europe, with Bo along for the ride we decided to hang Stateside this summer to visit family.
First stop: Maine!
We’ll be in Maine for six weeks, followed by four weeks in San Diego.
We’re loving our time in Maine thus far. Lake life is great, the weather has been a nice break from the Puerto Rico heat, and Bo is soaking up time with his cousins and other family members (as are we!)
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July 2024 Income Breakdown*
Product/Service Income: $154,121
TOTAL Journal Sales: $887 | Total Journals Sold: 24
The Freedom Journal: Accomplish your #1 goal in 100 days!
- Total: $519 (12 Freedom Journals + 2 Digital Packs sold)
The Mastery Journal: Master Productivity, Discipline and Focus in 100 days!
- Total: $168 (2 Mastery Journals + 3 Digital Packs sold)
The Podcast Journal: Idea to Launch in 50 Days!
- Total: $200 (5 Digital Packs sold)
Podcasters’ Paradise: The #1 Podcasting community in the world!
- Total: $4,017
Real Revenue: Turn your BIG IDEA into Real Revenue
- Total: $75
Podcast Sponsorships: $149,121
Podcast Launch: Audiobook: $16 | eBook: $5
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: $16,745
*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: $16,191
- Audible: $0
- Bluehost: $0
- Click Funnels: $1,191
- CovertKit: $0
- Coaching referrals: $0 (email me for an introduction to a mentor for overall online business or a Podcast focused mentor!)
- Speaker Fee: $15,000
Resources for Podcasters: $103
- Podcasting Press: $0
- Splasheo: $0
- Fusebox: $0
- Libsyn: $48 (Use promo code FIRE for the rest of this month & next free!)
- Repurpose House: $34
- UDemy Podcasting Course: $21
Other Resources: $451
- Amazon Associates: $62
- Other: $389
Total Gross Income in July: $170,866
Business Expenses: $8,776
- Advertising: $0
- Affiliate Commissions (Paradise): $0
- Cost of goods sold (Journals): $98
- Fulfillment: $0
- Consulting: $133
- Design & Branding: $0
- Dues & Subscriptions: $51
- Legal & Professional: $0
- Meals & Entertainment: $365
- Merchant / bank fees: $1,559
- Amazon fees: $ 83
- PayPal fees: $326
- Office expenses: $270
- Community Refunds: $697
- Promotional: $0
- Travel: $1,813
- Virtual Assistant Fees: $3,381
- Website Fees: $0
Recurring, Subscription-based Expenses: $3,726
- Adobe Creative Cloud: $60
- Accounting: $955
- Boomerang: $90 (team package)
- Authorize.net: $25
- Google: $90
- Cell Phone: $162
- CookieYes: $10
- Chat GPT: $20
- Internet: $68
- Analytics: $70
- Keeper Security: $215 (annual fee)
- eVoice: $15
- Keap CRM: $256
- Insurance: $669
- Libsyn: $209
- Linktree: $9
- Spotify: $19
- OpenAI: $20
- Wordfence: $119 (annual fee)
- Taxes & Licenses: $505
- Patreon: $45
- Zoom: $15
- Xero: $80
Total Expenses in July: $12,502
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 July 2024: $158,364
Biggest Lesson Learned
Schedules Equal Flexibility
Having a baby and navigating a new normal when it comes to getting work done has taught me A LOT – and it has only been 9 months!… I know there is a lifetime of lessons ahead.
But one lesson that stood out for me this month is the importance of having a schedule – and how this has helped me be so much more flexible. (I know a common misconception among entrepreneurs and creatives is that having a schedule in place will stifle spontaneity and not allow one to be flexible. I do not agree with this.)
We’ve reached a new milestone with Bo thanks to sleep training. He went from four 25-minute naps throughout the day to two 1.5 hour naps, and as a result we have a much more predictable schedule.
This not only allows me to get more focused work time in, but it also allows me to plan fun outings and activities for us to do in between naps.
Up until now we really haven’t had a consistent schedule, and that has really tested my patience. But now that we’re onto this new stage, we’re experiencing a whole new level of flexibility – thanks to our schedule!
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.
