Pay Play Profit

Maybe you're wondering what data you should be paying attention to, and what KPIs or metrics should you be doing. There are numbers that give you safety and those are the numbers you're drawn towards. Then there's also data that can be challenging and frustrating. And so, you just don't like dealing with those kinds of numbers.

There are so many pieces to financials and financial numbers, and the things that impact those numbers. We do understand that it can be very daunting and overwhelming. But you also have to understand that you have to know your numbers. You've got to fall in love with data without judging yourself in the process of it.

Today, we talk about numbers. Learn how to establish your financial scorecards to build and grow your financial confidence. If you find yourself in a season of not feeling stable or you can't see around blind corners, if you're worried about debt and you're concerned about your tax bill, then that's what your financial scorecards are supposed to start helping give you confidence in. The more confidence you have about what's happening, the more you can start to predict.

At the end of the day, growth is the goal. And not having a three-dimensional perspective of profit, tax, and cash flow can hurt you when it comes to your finances.

In this episode, you will hear:

• The importance of having a financial scorecard
• Having a season of observation
• Weekly numbers you need to look at
• The importance of cash flow balance
• Cash metrics to look at on a monthly basis
• Data as your tool, not a weapon

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Supporting Resources:

Entrepreneurial Operating System

Episode 101: Back to The Basics Checklist to Achieve Breakthrough When You Are Stuck

Episode Credits

If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.

Feeling stuck in your business? Well, don't we all get that feeling at some point? Maybe you're wondering why you can't get to the seven figures or nothing just seems to work, we all have been there.

When you're at this point in your business where you feel stuck, you've got two choices. You either whine and stay stuck – or you do something to break through that ceiling.

In this episode, we're going to help you get that clarity you need with a simple yet special toolbox that we use here at The Bottom Line®.

The Entrepreneurial Operating System® or EOS® program is a powerful tool that trains you on how to get super clear and understand what you need to do to get to where you want to go and who you need to do it with.

Today, we dive into the EOS® toolbox to share with you this checklist, which is actually a tool to help make you step back so you can identify the areas where you're currently stuck. Identify the problem, otherwise, you can't fix it.

In this episode, you will hear:

• What it means when a company "hits a ceiling"
• The five leadership abilities: Simplify, Delegate and Elevate, Predict, Systematize, and Structure
• The "five questions" checklist
• The importance of clarity breaks

Subscribe and Review

Have you subscribed to our podcast? We'd love for you to subscribe if you haven't yet.

We'd love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select "Ratings and Reviews" and "Write a Review" then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast.

Supporting Resources:

Entrepreneurial Operating System

Rocket Fuel by Gino Wickman

Traction by Gino Wickman

Episode Credits

If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.

Here at The Bottom Line®, we're always celebrating our wins, big and small – and today, we're celebrating our first 100 episodes of The Pay Play Profit Podcast!

If you think running a podcast is easy, well, it's not. Launching a podcast is just half of the battle. The other half is making sure we're releasing something valuable each week, and that requires a lot of dedication. That's why it pays to have a partner who can keep us accountable. As they say, "it takes a village" – and that includes producing a podcast too. We believe partnerships fuel transformation.

In this episode, we recall our top five episodes of all-time as well as our personal favorites. We're also sharing some tips if you're thinking about doing a podcast. One of the things we learned is that you don't have to release an episode every day. Whether you do it every week or twice each month, consistency is key!

If you're looking to truly connect and move the needle for someone, then maybe podcasting is worth a try. At the end of the day, it's a profit decision. And as what we always mention here over and over – every decision is a profit decision, and profit is measured in time, energy, and money.

In this episode, you will hear:

• Why it's helpful to pay for accountability
• Tips in launching a podcast
• Why the first seven days of downloads is the most important
• Our top five episodes of all time
• Our vision for this podcast in the future

Subscribe and Review

Have you subscribed to our podcast? We'd love for you to subscribe if you haven't yet.

We'd love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select "Ratings and Reviews" and "Write a Review" then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast.

Supporting Resources:

Our Top Five Episodes of All Time:

• 042: Understanding S-Corp Reasonable Compensation
• 050: Email Marketing for eCommerce with Chris Orzechowski
• 068: Understanding Tax Deductions for Mileage & Vehicles
• 066: Top 50 Tax Deductions in 2021
• 002: The Recipe for Building an Online Financial Powerhouse

Our Personal Favorites:

• 070: TBL Team Thanksmas 2021 Highlights
• 063: The Tale of Two Desks & Their Meaning
• 067: Quarterly & Annual Planning EOS Style

Episode Credits

If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.

The accountable plan is a policy within your company or your entity, which outlines how you reimburse yourself as an owner, employee, or shareholder-employee. And if you have team members within your business, the accountable plan is a good policy for them to get reimbursed for expenses as well.

One of the ways you get compensated for your business is wages, distributions, and expenses. And so, you've got to know which for what and an accountable plan is a great way to get reimbursed for those expenses. But first, let's differentiate home office reimbursements from home office deductions. Yep! Those two are not the same.

The home office deduction is for the Schedule C filer, which is the sole proprietor or the single member LLC. The home office reimbursement, on the other hand, is a potential tax strategy that a corporation or partnership can use in their accountable plan. Specifically, the home office reimbursement is an expense report to reimburse the employee of a corporation or a partnership when using their home for business purposes.

Now, there's a process to determine accountable plan reimbursements for your home office. In this episode, we're going to walk you through what the process would look like when it comes to handling everything.

In this episode, you will hear:

• What is an accountable plan?
• Understanding the annual operating costs of the home
• Owning a home vs. renting a home
• Can home renovation costs be included in your reimbursement?
• Calibrating your real cost vs. budgeted cost

Subscribe and Review

Have you subscribed to our podcast? We'd love for you to subscribe if you haven't yet.

We'd love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select "Ratings and Reviews" and "Write a Review" then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast.

Supporting Resources:

Episode 095: Using An Accountable Plan To Create Tax-Free Reimbursements

Episode Credits

If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.

The decisions you make today create what you own tomorrow. That's why you need to code your wages and know the differences between them. You want to create straight lines and clarity across all the players by making sure you're breaking down everything in your books.

Today, let's delve into the officers compensation vs. shareholder compensation vs. wages & salaries. Knowing the difference is important. You want the tax return filed more efficiently and accurately because "reasonable compensation" is a big deal.

Being able to draw those lines and separate them out also allows you to analyze your business better. For instance, officers compensation and shareholders wages should not be reflected in your operation. And if you're a sole proprietor or a single-member LLC, you don't get wages and salaries. Instead, you get an owner's draw, which should not be part of your expenses.

This is actually very straightforward if you understand the hats you have on. States and federal agencies are ever more transparent now and all these things are going to tie down at some point. Therefore, you have to make sure that your processes around your finances and your partnerships are all on the same page.

In this episode, you will hear:

• The owner's draw in a sole proprietorship or single-member LLC
• The difference between a shareholder and an officer
• What happens when you're a shareholder who's also working in the business?
• The team's wages go to W2 wages and salaries, not contract labor
• Filing forms and timelines
• Managing expectations around relationships
• The benefits of getting your books correctly right now

Subscribe and Review

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We'd love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select "Ratings and Reviews" and "Write a Review" then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast.

Supporting Resources:

097: Direct Costs vs. Expenses & Why You Should Care About Knowing The Difference

Episode Credits

If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.

The best profit decisions are happening with your time, energy, and money, which means more pay, play, and profit in your business and life. And a huge part of that is understanding your financials.

Your financials are three-dimensional – profit, tax, and cash flow. You also need to think about direct costs versus expenses in all these three dimensions. "Direct cost" refers to the cost directly tied to your sales. You incur them directly with your sales. "Expense" refers to the operation cost. These are the things you do and spend money on that are not directly tied to the sales. Everything you spend obviously supports the sales but they're not directly tied to the sale. Now, the IRS has a very defined structure on how they want to see your costs and expenses filed on the tax return. This is part of the tax compliance.

Today, we're going to dive into direct costs versus expenses, and why you should care about knowing the difference. And as a small business owner, you should definitely care!

Now, you have to get the foundation in place first, because if you don't understand the foundation of direct cost versus expenses, it's hard for you to navigate the three-dimensional conversation.

In this episode, you will hear:

• The difference between direct cost vs. expenses
• Why you should care about the difference
• The importance of having a relationship with your tax accountant
• Why you shouldn't do miscellaneous expenses or general expenses
• Why your profitability and cash flow are not improving

Subscribe and Review

Have you subscribed to our podcast? We'd love for you to subscribe if you haven't yet.

We'd love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select "Ratings and Reviews" and "Write a Review" then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast.

Episode Credits

If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.

How can you attract new clients and make sure you're the right fit for each other? There's so much to talk about when it comes to client onboarding, and part of that is learning how to attract new clients and set the right expectations from the start.

A partnership is a two-way street, which means your clients also need to know how they can help you serve them better. The magic happens when there's transparency and you've set those expectations upfront.

When you get dialed in because people are looking for an accountant or a tax person, those are not relationships that people just walk out of all of a sudden. Otherwise, they're leaving for two reasons. Either they didn't feel served, or they just couldn't afford you anymore. Ultimately, a partnership is similar to marriage – you have to be in it for the long haul.

In this episode, you will hear:

• The discovery process: things clients should expect
• Customer service is your number one marketing tool.
• How selling can be a service
• The four things we want clients to know upfront
• Diving into the client to understand them better
• Putting everything in writing

Subscribe and Review

Have you subscribed to our podcast? We'd love for you to subscribe if you haven't yet.

We'd love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select "Ratings and Reviews" and "Write a Review" then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast.

Supporting Resources:

Xero

Episode Credits

If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.

If you're a small business owner with employees and you still don't have an accountable plan, then now is the time to start thinking about it. In this episode, we're diving into using an accountable plan to create tax-free reimbursements – in a legal way.

Every decision is a profit decision, and profit is measured in time, energy, and money, and that especially happens around your tax, your tax strategies, and your policies. And if you're able to hit all three, this means more pay, play, and profit for you and your business!

Basically, an accountable plan is a policy around how you're going to be reimbursed for expenses inside your business. One of the biggest reasons why you want an accountable plan in place is reduced taxable income and self-employment tax for the owner or the shareholder. It also allows the reimbursement to be excluded from taxable income for employees.

An accountable plan is absolutely legal. If you're ever audited, then you have nothing to fear because then you've got all the structure in place.

In this episode, you will hear:

• Accountable plan of a business owner vs. shareholder
• Why consider an accountable plan
• Entity types that can benefit from an accountable plan
• Assumptions made and three rules when setting up an accountable plan
• Pros and cons of an accountable plan
• Other considerations (ex. meal deduction, home office expense, codes)

Subscribe and Review

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We'd love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select "Ratings and Reviews" and "Write a Review" then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast.

Supporting Resources:

Wine Whiskey & Sarcasm: https://winewhiskeyandsarcasm.com/

Episode Credits

If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.

It can be so intimidating to start to talk about a 401k for yourself as a business owner, much less adopt a company 401k, especially if you're just a two-person team with your first deputy team member.

If retirement and being aggressive towards retirement are on your radar, there's no better time than now to understand what adopting a company 401k means. The savings for you could be substantial depending on how your financials look and where you are at in the season of your life.

It's also worth noting the importance of having the right partners in place. At The Bottom Line®, we have found the best partners in the market that we have used in our business and with our clients. First, is Guideline, a retirement platform that offers a wide range of 401k products. Our other partner is Gusto, which is our payroll partner.

Adopting a company 401k is a huge decision because there are a lot of moving parts to it. It impacts not only you as the business owner, but also your employees and the company itself. It impacts your cash flow, your profitability, and your taxes.

Therefore, it's crucial to have that mental acuity and clarity to make sure that you're adopting a company 401k at the right time, backed with all the facts and the data, and having the right partners to help you set up the right type of plan and systems based on how you're structured and how your finances are going.

In this episode, you will hear:

• The three scoops of a profit decision
• Mindset shifts you need to make before embarking on this
• When to know it's time to make the call
• Understanding the fees involved
• Things to think about when designing your plan
• Timeline for implementation
• Employer matching, non-elective contribution, profit sharing
• The importance of an integrated payroll solution
• The concept of the Safe Harbor
• How Guideline can help you with compliance

Subscribe and Review

Have you subscribed to our podcast? We'd love for you to subscribe if you haven't yet.

We'd love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select "Ratings and Reviews" and "Write a Review" then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast.

Supporting Resources:

Gusto

Guideline

Previous Episodes:

Episode 075: Common Retirement Plans for Small Businesses in 2022

Episode 079: How HSAs Benefit You Now and At Retirement

Episode Credits

If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.

The health of your accounting and your book starts with the health of your chart of accounts, which is basically an accounting terminology that refers to a list of categories including income, expenses, and liabilities.

If your business is extremely consistent in how it's spending money, what it spends money on, and how it receives money, then you can make sound decisions over the course of 90 days. This is data coming out of the accounting system that you can trust. You need to be able to produce quality data because without excellent data and you don't have the facts you need, you can't make the best profit decisions.

At the end of the day, your chart of accounts is something you should absolutely know and understand. In fact, it should be a great training tool you can introduce to your team. It should also be a tool for communication between you and your accountant, your tax pro, or whoever is involved in your finances. S don't underestimate the power of a great chart of accounts.

In this episode, we dive into the 10 common bookkeeping mistakes you should know and understand as an entrepreneur. This is an important and relevant topic, even if you don't like bookkeeping because it will give you insights into what you should be paying attention to when laying the foundation in your business in terms of your bookkeeping and your accounting.

In this episode, you will hear:

• Paying attention to income and documenting all sources of income
• Process fees and third-party seller fees
• Payroll and payroll tax
• Understanding the different wages related to payroll
• Understanding your income or sales tax
• Factoring in the benefits
• The owner's draw
• Treating cashback rewards in two ways
• Reporting your refunds properly
• Sales as a refund vs. refund in terms of expenses

Subscribe and Review

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We'd love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select "Ratings and Reviews" and "Write a Review" then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast.

Supporting Resources:

Gusto Payroll

Episode Credits

If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.