Consultants and Money

There are good surprises…and bad ones.

Bad ones can happen when you haven't been on top of your quarterly estimated tax payments.

So today that's what I'm talking about, and how you can prevent a bad surprise. I'll explain:

• What exactly are estimated payments,

• When quarterly estimated payments are actually due (take notes, 'cause they are not exactly quarterly),

• Who this applies to and how to figure out how much money to set aside,

• Ways you might get "into trouble", and finally

• How to do a "gut check" to assess your actual tax rate (and potential tax bill!)

What I want for you to take away from this episode: make sure you're aware of how much you need to be paying for estimated quarterly taxes.

Related episode: Check out episode 21 if you want to learn about how you might be able to save money by becoming an S-corp.

If you don't know - ask for help.

And, until next time, may your week be filled with love and profit!

Connect with Erica:

• Instagram @erica.goode.cpa
• LinkedIn: Erica Goode, CPA
• Newsletter sign-up: https://www.ericagoode.com/newsletter-signup
• ***FREE Tax Deduction Guide***

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Tax season is almost here, which means one of two things:

1. You're all ready to file and pay and move on with life, or...

2. You're all ready to file an extension and keep working on getting your "tax act" together

Either way, the bottom line of today's episode is something we all need to know. I'll be talking about:

• How a tax extension is defined by the IRS

• How penalties work: how much they are and when they start

• The best way to pay over time if you don't have the cash on hand - and how NOT to pay it!

Link to copy of a 1913 tax return!

Connect with Erica:

• Instagram @erica.goode.cpa
• LinkedIn: Erica Goode, CPA
• Newsletter sign-up: https://www.ericagoode.com/newsletter-signup
• ***FREE Tax Deduction Guide***

As a bookend to episode 24, where I talked about an agency business model, today I interview Jonathan Stark and Rochelle Moulton, co-hosts of "The Business of Authority" podcast.

We discuss how you can still scale up your business using a soloist or solo consultant model, including:

• The business of scaling up and creating leverage without the agency model

• How to get past being paid per hour (creating leverage)

• Common income plateaus and how to shift into a more profitable situation

• What to consider as you hit that plateau - one of them may seem pretty basic but is often overlooked!

• A crucial mindset shift the small business owner has to make in order to scale

"Hourly billing punishes expertise." - Jonathan Stark

"Flexibility is the new wealth…" - Rochelle Moulton

Find the complete show notes here.

Follow Jonathan and Rochelle here:

RochelleMoulton.com

JonathanStark.com

The Business of Authority Podcast

Ditch Hourly Podcast

Connect with Erica:

• Instagram @erica.goode.cpa
• LinkedIn: Erica Goode, CPA
• Newsletter sign-up: https://www.ericagoode.com/newsletter-signup

Everyone has a "trailhead" at the start of their business. There are many business models to choose from, but when you're first starting out, you often don't have a clear vision of what your business will look like in 5 years…

Eventually, if you want to meet goals and continue to grow your business, you'll need to know how you will move forward.

Only you know what business model fits your goals and will help you achieve what you want.

Listen to today's episodes for some thoughts on possible business models, and how you can begin to get clarity on your own.

Find the complete show notes here.

Connect with Erica:

• Instagram @erica.goode.cpa
• LinkedIn: Erica Goode, CPA
• Newsletter sign-up: https://www.ericagoode.com/newsletter-signup
• ***FREE Tax Deduction Guide***

Bonus episode on the happenings and collapse of Silicon Valley Bank and what best practices we can take away, even if you weren't directly impacted by the collapse.

Get on the email list

I'm responding to a few questions that I've received in my DMs and email from clients and listeners. Maybe one of them is yours!

(And if it isn't and you DO have a burning question, please send it along and I may answer it in a future episode.)

Questions answered:

1 - "How do you file taxes when you just start a business and have minimam profit? Can I still file with my spouse?"

2 - "What do you think of FlyFin and other bookkeeping AI?

3 - "What happens when you get audited by the IRS?"

Also an update on the Companion Pass with the Southwest Airlines credit card.

Connect with Erica:

• Instagram @erica.goode.cpa
• LinkedIn: Erica Goode, CPA

Today I'm sharing the short-but-sweet answer to a question that is on EVERY new business owner's mind: "How do I pay myself?"

It's really not a complicated answer, but here it is:

How you pay yourself from your business depends on how your business is structured (legally) and taxed (by the IRS)

I'll talk through:

• How to take an owner distribution

• How frequently I recommend paying yourself

• Paying yourself as a sole proprietor vs an LLC vs an S-corp

*****

And if you need a refresher, here are 2 episodes I refer to in the show:

1. 4 - LLCs and EINs

2. 21 - What's an S-Corp and When Should I Become One?

Find complete show notes here

Connect with Erica:

• Instagram @erica.goode.cpa
• LinkedIn: Erica Goode, CPA
• Newsletter sign-up: https://www.ericagoode.com/newsletter-signup
• ***FREE Tax Deduction Guide***

Are you planning to add an online membership program to your business in 2023?

Some entrepreneurs see a membership as a way out of done-for-you service work. And many business owners are under the impression that memberships are easy to launch and scale, but they don't always turn out to be the easy money-makers they seem to be.

You CAN scale your service-based business without memberships, or other group programs.

In this loaded interview Natalie Eckdahl, CEO of Biz Chix, and I talk through the pros and cons of having a membership site and offering courses. There are so many business considerations to take into account before - or IF - you decide to add this model to your offerings.

Listen in and then decide if that's the move for you.

Connect with Natalie:

• BizChix.com

• Natalie's Private Podcast

• Six Figures Lab

Natalie talked about her prior client's Instagram account: Jessie Ginsberg

Connect with Erica:

• LinkedIn: Erica Goode, CPA
• Instagram @erica.goode.cpa
• Newsletter sign-up: https://www.ericagoode.com/newsletter-signup
• ***FREE Tax Deduction Guide***

**MAIL BAG LINK**

Have a question about business money, taxes or QuickBooks? I want to hear them. I'm doing an upcoming "Mail Bag" episode where I will answer your questions.

Here's the link to my "Mail Bag" - submit a question for me to answer on the Podcast.

Remember, no question is "little" or "silly". And if you're still nervous, I'm happy to keep them anonymous.

Oftentimes service-based business owners, such as coaches and consultants, fail to consider the long-term value that they can bring to their clients and the lifetime value of that client to their own business.

It's a question of strategy.

Your takeaway from this session is for you to think about the lifetime value of your ideal customer.

And then consider:

• What services can you confidently offer to prospective clients - without losing your shirt?
• Does it make sense to offer that free 1-hour consultation or drop $300 on that sales dinner?

If the lifetime value of those potential clients is high (along with your ability to close the deal), the cost of time and money there might very well be worth it.

But maybe you shouldn't be booking all those free consultations for clients that don't have a high lifetime value.

Only you know best…but you won't if you don't give it some thought!

If you think a strategy session may help you, you're in luck! I've opened up my waiting list and will be filling up my calendar starting this April. Get on the waitlist now by using this link: https://www.ericagoode.com/contact

And until next time, may your week be filled with love and profit!

Connect with Erica:

• Instagram @erica.goode.cpa
• LinkedIn: Erica Goode, CPA
• Newsletter sign-up: https://www.ericagoode.com/newsletter-signup
• ***FREE Tax Deduction Guide***

Business coach, Erin Harrigan and I recently met for a planning strategy session, and she shares not only how she approached cash flow planning and paying herself before we'd met, but more importantly, what changed after our session.

If you think a strategy session may help you, you're in luck! I've opened up my waiting list and will be filling up my calendar starting this April. Get on the waitlist now by using this link: https://www.ericagoode.com/contact

Erin Harrigan is a Christian wife, empty nest mom, speaker, author, and business coach on a mission to help high-achieving Christian women level up their businesses without compromising their faith. Her customized business coaching, speaking, and award-winning podcast, Redefining Hustle: Pursuing Success as a Christian Woman helps women be more focused and fruitful by aligning business strategy and goals to God's truth.

• Reach out and connect with her on her website: https://erinharrigan.com/
• And listen to a conversation Erica had with Erin about financial must-haves on Erin's podcast.

And until next time, may your week be filled with love and profit!

Connect with Erica:

• Instagram @erica.goode.cpa
• LinkedIn: Erica Goode, CPA
• Newsletter sign-up: https://www.ericagoode.com/newsletter-signup
• ***FREE Tax Deduction Guide***