The Progressive Agency Podcast

Key business metrics are vital to follow to minimize your tax burden and make your business more profitable. Hear insights about:

• Why it's vital to know your key business metrics and numbers so that you can make good business decisions
• Where to look and which key business metrics to track that can help you save money on your taxes
• Why your business cash flow is crucial, and why you should always be aware of your Accounts Receivable, Accounts Payable, and Profit and Loss analyses
• Why you should be checking your numbers and key business metrics on a regular basis throughout the year
• What "basis" is and why it is an important tax concept to understand, and what actions will give you basis or cause you to lose basis
• Why taking too much money out of your business can be an unexpected surprise that can cost you by disallowing you to take loss offsets
• Why you can have a strong, viable business and still have zero basis even if you've got great cash flow
• Why the type of business structure you're operating under can impact whether or not you have basis
• Why understanding your numbers and following your key business metrics can help your business operate more smoothly and become more profitable

In this week's solocast episode of the Progressive Agency podcast, I discuss why it is so important that you track your key business metrics and understand the numbers that power your business. If you aren't following your numbers and regularly checking in with your tax professional, you could be in for unexpected surprises at tax time that could cost you.

Your Profit and Loss analysis, Accounts Receivable (AR), and Accounts Payable (AP) provide powerful information and insights into your business, and so understanding and tracking these key business metrics is crucial. Not only will it help you make better decisions and avoid costly mistakes, understanding your numbers can increase the profitability of your business and open new opportunities you would have missed out on otherwise.

Your tax basis is another vitally important figure. Basis is typically calculated as how much you've invested in your business, and it's calculated differently between business structures. But having positive basis is important, because if your basis goes into negative numbers, it could prevent you from taking deductions to offset losses your business has experienced. Basis can fluctuate based on various factors including how much you've paid yourself out from your business over the course of the year, and so it can be helpful to consult with an experienced tax professional to help you understand how much basis you have (or don't have) and what the tax implications will be.

I invite you to reach out to me if you have any questions or concerns about your key business metrics and tax basis, my team and I will be happy to help you better understand these concepts. And of course, please visit https://craigcodyandcompany.com/agency-podcast/ for more informative, money-saving podcast episodes like this one.

• Website: www.craigcodyandcompany.com
• Twitter: @CraigC2742
• LinkedIn: https://www.linkedin.com/in/craigcodycpa

Craig Cody is a Certified Public Accountant, Certified Tax Coach™, business owner, and the host of The Progressive Dentist Podcast and The Progressive Agency Owner Podcast. Prior to his current work, Craig spent seventeen years with the NYPD, where he retired as a Lieutenant in September 2000. Craig is an expert in helping his clients legally reduce their tax liabilities and keep more of their money. Through his podcast, Craig helps dentists grow their practices through smart financial decisions and through financial education of the kind that isn't offered in dental school.

R&D tax credits? They can save your business a lot of money…if you meet the four-part requirements. Hear insights about:

• What R&D tax credits are, what qualifications the IRS expects a business to meet to qualify, and how R&D tax credits can help agency owners pay less in taxes
• What four tests your R&D expenses must pass to qualify, and why the technological test is a crucial bar to pass
• What sorts of R&D projects and initiatives would qualify for R&D tax credits, such as website redesign or AI implementation
• How customizing an off-the-shelf marketing database for internal use does count as an R&D expense that would qualify for these tax credits
• Geoff shares other example activities that would qualify as eligible R&D expenses that would meet IRS requirements
• How 42 of the 50 states also offer state R&D tax credits, with varying and individual state requirements
• Why checking your business activities against the four-part test is the first important step for getting started claiming eligible expenses as tax credits
• Why market research does not meet the technological requirement and so would not be an eligible expense

There are lots of ways your agency can save money on taxes, and too often agency owners leave money on the table for the IRS just because they aren't aware of their options. R&D tax credits can be huge potential tax savings, but you have to meet a four-point list of requirements to qualify. However, there are many types of qualifying expenses that meet the requirement threshold and you might be surprised at the tax savings you're missing out on by not taking advantage of R&D tax credits.

In this week's episode of the Progressive Agency podcast, expert Geoffrey Kimmel from Engineered Tax Services discusses these four key requirements and shares the many varied types of R&D that can qualify for R&D tax credits. If you're looking to claim every credit and deduction available to you to minimize your tax liability, this episode explains a key type of credit you won't want to overlook.

As Geoff explained during our discussion, the IRS wants you to meet four key requirements for any R&D tax credits you wish to claim. To qualify for these credits, the expense you're claiming must:

• Improve a component of your business
• Be technical in nature (website, internal use software, etc.)
• Involve research that eliminates some degree of uncertainty (testing, etc.)
• Involve "trial and error" to model the activity and evaluate its effectiveness

In other words, a website redesign would meet these requirements, for example. It involves improving a component of your business, it meets the technical standard, it involves research and the elimination of uncertainty, and it involves trial and error, tweaking and adjusting.

As Geoff explained, the technological bar is the main one you need to be certain to clear. Something like market research wouldn't qualify, even if it involved the use of technology, because the technology isn't the focus of the improvements.

If you think some of your business expenses might qualify for R&D tax credits, the first step is to check against those four key requirements. Of course, working with an experienced tax professional can help you ensure that you're meeting the threshold for qualification, so talk to your tax advisor if you aren't certain.

To learn more about Geoff Kimmel and his team at Engineered Tax Services, you can visit their website at https://engineeredtaxservices.com/ or reach out to Geoff directly at [email protected]. And, as always, please visit me at https://craigcodyandcompany.com/podcast/ for more informative, money-saving podcast episodes like this one.

• Call Geoff: (609) 915-1607
• Email Geoff: [email protected]
• Website: https://engineeredtaxservices.com/
• LinkedIn: www.linkedin.com/in/geoffkimmel
• LinkedIn: www.linkedin.com/company/engineered-tax-services
• Facebook: www.facebook.com/engineeredtax/
• Twitter: @EngineeredTax

• • FREE COVID Loan Grant Calculator Download
  • Website: www.craigcodyandcompany.com
  • Twitter: @CraigC2742
  • LinkedIn: https://www.linkedin.com/in/craigcodycpa

Geoffrey Kimmel has an extensive financial services background including service in the specialty tax, commercial banking, and insurance industries. Since 2010, he has consulted heavily with ETS clients to identify, qualify, and capture tax benefits. Prior assignments included managing Treasury Management consulting teams serving clients ranging from Small Business to Fortune 500 companies designing and delivering custom-developed operational, systems and process improvement solutions. He has personally consulted with American Express, US Air, Comcast and Merrill Lynch as well as numerous firms ranging from small business to Fortune 500. As CFO and Board Member for a regional bank, he managed all bank operations and financial activities. He was part of a select team that redesigned all treasury practices for the City and County of Denver. Geoff is a frequent speaker at industry events, with individual and firm wide CEU and CPE sessions on a variety of topics.

Geoff holds graduate and undergraduate degrees from Drexel University.

Small business tax saving strategies? Expert Craig Cody gives an overview of the many ways your agency can save money on taxes going forward.

In this special episode, you'll hear audio from the Build A Better Agency podcast, where Craig Cody is interviewed by host Drew McLellan from the Agency Management Institute. Hear insights about:

• How the onset of the global pandemic brought many changes to tax code including the PPP loan, EIDL and other small business tax saving strategies
• What key considerations to keep in mind about the interaction between the Employee Retention Credit and the Paycheck Protection Program loan
• Why expenses related to the global pandemic may be able to be deducted, and what qualifications to be aware of
• What the "Augusta Rule" is, and how business and agency owners can take advantage of the rule to move funds from their business to themselves with no tax liability
• Why a home office is the first step toward significant tax deductions, such as putting in a pool or a home gym
• Why it is important to check in with your tax strategist throughout the year, and why strong communication and proactivity are crucial
• What a Defined Benefit Program is, how it can benefit agency and business owners over the long term, and how it can be the ideal companion to your business exit strategies
• Why too few business owners take advantage of the Qualified Business Income Deduction, and what to ask when evaluating a potential new tax advisor

This week's episode of the Progressive Agency podcast is a bit different. In it, you'll hear audio from a conversation I had with Drew McLellan on his Build A Better Agency podcast. Drew's focus and passion are directed toward helping agency owners of all kinds grow, strengthen and scale their businesses.

During our conversation, I was able to give Drew's audience a high-level overview of the many potential credits, deductions and other small business tax saving strategies that many business owners don't even realize are available to them.

The saying goes, "you don't know what you don't know", and so this week's podcast episode will hopefully open your eyes to money that you're leaving on the table for the IRS unnecessarily. My goal is to dispel some of the myths around small business taxes, help you keep more of what you make, and ensure that your agency is on sound financial footing and that you're fully prepared for your eventual retirement.

There are so many ways that you can reduce your tax liability and credits that you can apply for that it can sometimes feel overwhelming. However, a great tax professional can help you make sense of things and can often help you find money you're leaving on the table.

Ask yourself, is your current tax pro actively seeking deductions? Are you checking in with them regularly, throughout the year, to strategize about ways you can be saving money? If not, you're almost definitely missing out on deductions, credits and other smart financial solutions.

That's because, to make the most of PPP, EIDL, ERC, the Augusta Rule and other opportunities, you have to be proactive. Once you wait until it's time to file, it's probably too late. That's why you should be talking to your tax professional regularly, giving them a very clear overview of your business and what has changed since you last spoke, so that they can be looking for these solutions. As Drew mentioned in our conversation, he's very good at what he does, but he's not a tax specialist. So, having a trusted advisor in his corner can make a big difference in the amount of his money he gets to keep.

I know you'll find my conversation with Drew helpful. This is a great opportunity to get up to speed on some of the options available to you, and I urge you to speak to your tax advisor and ensure that you're taking advantage of every available opportunity.

• Website: www.craigcodyandcompany.com
• Twitter: @CraigC2742
• LinkedIn: https://www.linkedin.com/in/craigcodycpa

For 30+ years, Drew McLellan has been in the advertising industry. He started his career at Y&R, worked in boutique-sized agencies and then started his own (which he still owns and runs) agency in 1995. Additionally, Drew owns and leads the Agency Management Institute, which advises hundreds of small to mid-sized agencies on how to grow their agency and its profitability through agency owner peer groups, consulting, coaching, workshops and more.

Craig Cody is a Certified Public Accountant, Certified Tax Coach™, business owner, and the host of The Progressive Dentist Podcast and The Progressive Agency Owner Podcast. Prior to his current work, Craig spent seventeen years with the NYPD, where he retired as a Lieutenant in September 2000. Craig is an expert in helping his clients legally reduce their tax liabilities and keep more of their money. Through his podcast, Craig helps dentists grow their practices through smart financial decisions and through financial education of the kind that isn't offered in dental school.

Challenges faced in talent acquisition? The global pandemic has made them even more difficult to overcome, but expert Art Boulay is here to offer advice. Hear insights about:

• How the outbreak of the global pandemic has created new and unique challenges faced in talent acquisition that all agency owners are being forced to deal with
• Why so many employees are now wanting to work from home, change careers or go back to school
• Why, prior to the pandemic, it took an average of 90 days to fill a position, and how since the pandemic that time frame has shifted to 4-6 months
• Why salary expectations have gone up, and why agencies must adapt to this fact along with work-from-home expectations
• Why now is the right time to take a hard look at your company culture, the speed of your hiring process, and your interviewing and screening process
• How Art helps agency owners address their blind spots and recognize weaknesses within their teams
• Why expediency and focus are crucial for finding the right employees and offering them a position before someone else does
• What steps you can take to improve your talent retention, and why open communication is crucial for making your team feel valued
• Why genuine connections are crucial, especially during and after the pandemic, and why remote tools like Zoom can be speed bumps for relationship-building
• How to conduct a great and informative exit interview that ensures you're getting value from your exiting employee's feedback

The media has recently been devoting a lot of time to the challenges of this unprecedented job market. Employees have greater salary expectations, increasingly want to continue working from home post-lockdown, and are leaving their positions in greater numbers than ever before. This is a universal issue for agency owners who are often desperately competing with each other for talented candidates.

In this week's episode of the Progressive Agency podcast, expert Art Boulay from Strategic Talent Management and I discuss these common but difficult hiring and retention challenges, and Art shares valuable wisdom on how to strengthen your relationships with your team members to ensure that they feel valued, how to be flexible in meeting their expectations, and how to speed up and improve your hiring and onboarding processes.

Many of the trends we're seeing today were already beginning, even before the outbreak of Covid-19. However, as we collectively scrambled to begin working remotely during lockdown, these trends were quickened, for a number of reasons.

Many employees have been hesitant to return to working in an office, due to concerns about health safety as well as having enjoyed greater flexibility and freedom during work-from-home. Many people during the pandemic found that they appreciated not having to commute to the office and being able to be home with their families during lockdown, and they are reluctant to give those things up as we begin to return to our workplaces.

Likewise, employees' salary expectations have climbed over the pandemic. During our conversation, Art said it's important to recognize these expectations and to be flexible about meeting them. After all, if you're forcing your team to work in the office and aren't offering them a salary increase, your competitor begins to look more appealing.

Also, many employees are choosing to leave their careers right now. Perhaps they have experienced the unexpected during the pandemic, or perhaps they are reevaluating their career goals. Some are choosing to go back to school or shift gears altogether. Art says it's important to remember that this isn't your fault… every business is having to deal with these same challenges faced in talent acquisition and retention.

As far as retention goes, Art says flexibility will certainly help. But it's also important to put in the time and effort to develop real relationships with the members of your team. Employees want to feel valued and appreciated, so taking the time to meet with them and periodically check in is key.

If a team member does decide to leave, an exit interview can be a useful way of finding out what has prompted the change. Perhaps something in their life circumstances has changed, or perhaps it's something to do with the role itself. Either way, be open to the feedback. What you learn can help you adapt your company's culture and your expectations.

As far as hiring, Art says it's important to act swiftly. Identify areas where your hiring and onboarding processes could be accelerated or streamlined. With so many agencies competing for candidates, how quickly you can pull the trigger can often mean the difference. Be very clear and intentional about the vacant role and interview a few high-quality candidates quickly.

• Blog: https://strategictalentmgmt.com/blog/
• Website: https://strategictalentmgmt.com/
• LinkedIn: www.linkedin.com/in/artboulay/
• LinkedIn: www.linkedin.com/company/strategic-talent-management/
• Facebook: www.facebook.com/Strategic-Talent-Management-77066671390/

• FREE COVID Loan Grant Calculator Download
• Website: www.craigcodyandcompany.com
• Twitter: @CraigC2742
• LinkedIn: https://www.linkedin.com/in/craigcodycpa

Art Boulay, MBA, is CEO of Strategic Talent Management, a consulting firm he co-founded based in Maine with clients all over the US. Like you, he recognizes that organizations spend lots of money solving problems caused by a lack of soft skills among their leaders, managers, employees and new hires. He is an expert in solving those people challenges.

Art brings practical ideas, humor and common sense solutions to each assignment. He specializes in organizational planning, succession & leadership, and is a certified behavioral and leadership coach. He is an expert in applying assessment tools to solve real-world challenges in coaching & development, hiring, promotion and recruitment.

Art has lived in Maine most of his life and enjoys hiking and camping in the beautiful north woods of his home state. He currently makes his home in Brunswick, Maine with his wife Lori.

How to improve efficiency at work? It's about managing your time and focusing on your numbers and metrics, says agency owner Jessica Hughes. Hear insights about:

• Why Jessica decided to run an agency, and how early childhood experiences pushed Jessica and her husband Randall to consider specializing in food and beverage
• How Jessica and Randall's passion has led to running their businesses differently and taught them how to improve efficiency at work
• How focusing on their business allowed Jessica and Randall to have a "light at the end of the tunnel" through the pandemic
• Why budgeting projects and understanding the financials behind them is a crucial part of Jessica's work
• Why focusing on developing a strong understanding of your metrics and numbers is crucial for growing your agency
• How Jessica and Randall's open efforts to manage their finances inspires their team to be budget conscious too
• How Jessica structures her week to ensure that she's managing everything, including setting meetings during her "business development Mondays"
• How appearing on Good Morning America created a huge amount of work for Jessica's spice business, and how her family pulled together to get through the challenge

Efficiency isn't just about getting more done. Being efficient with your time can save you from headaches and blind spots in your agency. Being efficient with your finances allows you to stretch them further and can make your agency more profitable.

In this week's episode of the Progressive Agency podcast, Jessica Hughes, Managing Director of food and beverage-focused content agency Viscul, shares how to improve efficiency at work by dividing up your time into focused "buckets", by managing your expenses and tracking your metrics, and by instilling these values into your team.

As Jessica explained during our conversation, her life was already hectic as a wife and mom, through her work at Viscul, and running her family's other business, Calicutts Spice Co. And that was before the pandemic shook everything up. With so many plates spinning in the air, Jessica hsa found it crucially important that she divides up her work week into "buckets" of time. For example, Jessica said that Mondays are designated as her business development days.

Carving up time to devote to every important aspect of the business is vital, and Jessica even tries to schedule meetings during appropriate time buckets. This way, she's dedicating a portion of her time to all of the things that need her attention, without letting anything critical slip through the cracks.

Statistically speaking, women live an average of 6-8 years longer than men do. However, they typically retire with only ⅔ of the money men retire with. That's precisely why Katie says it's crucial for women to begin planning for their retirement with intentionality and clear goals in mind.

However, as Katie explained during the podcast episode, many women consider their finances to be extremely private information. In fact, Katie said that many women are more comfortable talking about their sexual health than their financial health. This stigma can be harmful, because "you don't know what you don't know". You could be making serious financial mistakes without being aware of it. That's why working with an experienced professional is so crucial.

One of the other key pieces of advice Jessica shared during our conversation is how important it is for agency owners to truly take the time to understand their financial situation, expenses and other metrics. When you know how much you're spending on a project and you also know how much you'll profit from the project, you can better manage the spread. It makes no sense to produce a widget for ten dollars and then sell it for eight dollars, for example. The more detailed and granular your view of your important metrics, the better decisions you can make for your agency.

To learn more about Viscul and Jessica Hughes, please visit their website at https://visculcreative.com/. And, as always, please visit me at https://craigcodyandcompany.com/podcast/ for more informative, money-saving podcast episodes like this one.

• Website: https://visculcreative.com/
• LinkedIn: www.linkedin.com/in/jessicarhughes/
• LinkedIn: www.linkedin.com/company/viscul/
• Facebook: https://www.facebook.com/visculcreative
• Twitter: @viscul

• FREE COVID Loan Grant Calculator Download
• Website: www.craigcodyandcompany.com
• Twitter: @CraigC2742
• LinkedIn: https://www.linkedin.com/in/craigcodycpa

Jessica Hughes is the Managing Director of Viscul, an award-winning creative content agency specializing in food and beverage as their bread and butter, located in the rural town of Mechanicsburg, Pennsylvania. The Viscul team, including Randall, her husband and the agency's Creative Director, serves retailers, growers and manufacturers up and down the east coast. In her spare time, she keeps things spicy with their other growing business – Calicutts Spice Co. Jessica has been named among Central Pennsylvania's 40 under 40 and Women of Influence.

Expert Katie Keating from Fancy LLC discusses financial challenges faced by female entrepreneurs and key money info women need to know. Hear insights about:

• Katie explains founding Fancy LLC in 2011 during the "3% Movement" that was created because just 3% of creative directors at the time were women
• How the fact that 80% of buying decisions are made by women illustrated a real opportunity for Katie and her co-founder to meet that challenge
• How Katie and her co-founder were passionate about doing business right but struggled with the financial side because they had no training
• What important, unique challenges faced by female entrepreneurs can be overcome with an increase in financial literacy and understanding the value of your work
• How Fancy conducted a survey of women over 40 and gained extraordinary insights into this important demographic
• Why women over 40, on the whole, are happy being the age they are, and why brands too often target women as if they wished they were younger
• How women typically retire with 2/3 of the money that men retire with, even though they live on average 6-8 years longer than men
• Why it is crucial for any business owner to begin thinking about their retirement future now
• How Fancy LLC focuses on "taboo" products and services for women, and how this surprisingly includes financial issues

We all know about challenges faced by female entrepreneurs and business leaders, such as the pay gap between what women are paid and what their male peers are paid for the same job. However, there are many other, less obvious disparities that women in business face. Too often, women business owners are left to "figure finances out" themselves. And it's not just in business, either. For example, in the world of advertising, did you know that the vast majority of creative directors are male? This is surprising, especially considering that 80% of buying decisions are made by women.

Katie Keating has a deep understanding of these issues. As the co-founder of women-focused advertising agency Fancy LLC, Katie recognized that these disparities created a unique opportunity to position women-owned and operated Fancy within the industry.

In this week's episode of the Progressive Agency podcast, Katie shares some of the key facts and considerations women business owners, especially women over 40, need to be aware of. And she shares some of the important challenges and lessons she experienced in building and growing her own agency.

Statistically speaking, women live an average of 6-8 years longer than men do. However, they typically retire with only ⅔ of the money men retire with. That's precisely why Katie says it's crucial for women to begin planning for their retirement with intentionality and clear goals in mind.

However, as Katie explained during the podcast episode, many women consider their finances to be extremely private information. In fact, Katie said that many women are more comfortable talking about their sexual health than their financial health. This stigma can be harmful, because "you don't know what you don't know". You could be making serious financial mistakes without being aware of it. That's why working with an experienced professional is so crucial.

There are many different methods of improving your financial literacy to make more informed decisions about your long-term financial needs. Sitting down with a professional can be powerful, but you can also explore free and paid online training to shore up your knowledge. Katie and her co-founder felt like they were floundering and had to figure out the finances of running a business on their own, and this created a number of early headaches and struggles for their business. By taking the time to educate yourself on your finances and your options, you can avoid many of the challenges faced by female entrepreneurs and business leaders.

• Website: www.fancynyc.com
• LinkedIn: www.linkedin.com/in/katiekeating/
• LinedIn: www.linkedin.com/company/fancy/
• Twitter: @whatwefancy

• FREE COVID Loan Grant Calculator Download
• Website: www.craigcodyandcompany.com
• Twitter: @CraigC2742
• LinkedIn: https://www.linkedin.com/in/craigcodycpa

Tips for scaling a business that can help you build a powerful foundation for your business and its growth. Hear insights about:

• Why Sean created Whiteboard Marketing in an effort to leave the corporate grind and be more present in the lives of his family
• How Sean grew Whiteboard Marketing from a solo operation in 2005 to more than 30+ team members today, and why he was attracted to the dental practice marketing niche
• What key tips for scaling a business Sean learned when creating and growing Whiteboard Marketing
• Why you should focus on building your revenue to support the growth of your business before you build out your team and office
• How mastering your execution on your offerings and streamlining your processes is crucial for helping your business thrive
• Why Sean wishes he had hired someone early on in the life of Whiteboard Marketing whose focus was solely on business development
• Why one of Sean's biggest tips for scaling a business is that discipline is a crucial time-management and business leadership skill
• Why surrounding yourself with the right clients whose businesses are capable of weathering storms is key to long term success

• FREE COVID Loan Grant Calculator Download
• Website: www.craigcodyandcompany.com
• Twitter: @CraigC2742
• LinkedIn: https://www.linkedin.com/in/craigcodycpa

• Website: https://whiteboard-mktg.com/
• LinkedIn: www.linkedin.com/in/seanwhitewm/
• LinkedIn: www.linkedin.com/company/whiteboard-marketing/
• Facebook: www.facebook.com/WhiteboardMktg/
• Twitter: @Whiteboard_Mktg

Sean White founded Whiteboard Marketing in 2005 and since has continued to flourish as one of the top dental marketing firms in the country. With its unmatched level of personalized service, Whiteboard Marketing continues to fulfill the original mission of providing comprehensive marketing solutions to dental practices. The Whiteboard Marketing team includes account executives, social media specialists, online reputation specialists, a web development team, SEO and Local SEO specialists, pay-per-click specialists, graphic designers, and more. The Whiteboard Marketing team loves finding new and innovative ways to help dental practices attract, acquire and retain patients.

Sean credits his clients for where Whiteboard Marketing is today! Since 2005, Sean has built relationships with dental practices throughout the country and dental association partners such as The Paragon Program, ACT Dental, and The Seattle Study Club, helping them meet their sales and marketing goals. Sean is a graduate of The Ohio State University. His wife Jody is an Account Executive at Whiteboard Marketing and they have three very active teenagers and Lacey-a golden retriever that serves as Chief Barketing Officer.

Employee Retention Credit 2021? Here's everything you need to know to take advantage of this powerful tax credit. Hear insights about:

• How the Employee Retention Credit was made available in the first CARES Act, and how in the second version it was made available in conjunction with PPP
• How the Employee Retention Credit 2021 version works, and how the rules have changed since the first version
• How you can qualify for the Employee Retention Credit 2021 if you had at least a 20% drop in revenue compared to the same quarter in 2019
• How the Employee Retention Credit pays 70% of the first $10,000 in wages paid to an employee
• Why you automatically qualify for the credit in a quarter following the quarter in which you experienced the revenue drop
• Why the intent of the Employee Retention Credit is to help subsidize your payroll and offset losses
• How the owner of a business qualifies for the credit, as does their spouse and any employees not related to more than 50% of the owners of the business
• How the qualification depends on if you suffered a 50% reduction in receipts in 2020, or a 20% reduction in 2021 and are in a trade or business
• Why you should make sure that you aren't using the same salaries to qualify for both the Employee Retention Credit and either round 1 or 2 of the PPP
• What important differences exist between the Paycheck Protection Program and the Employee Retention Credit

In this week's solocast episode of the Progressive Agency podcast, I discuss the ins and outs of the Employee Retention Credit, one of the two programs created for businesses as part of the CARES Act to aid them in paying their employees during the global pandemic. The intent was to subsidize employee pay for businesses that experienced a large financial loss due to the pandemic.

The Employee Retention Credit has gone through a few changes since its inception; it was updated to work alongside the Paycheck Protection Program (PPP). However, it is important to make sure that you aren't using the same employee salaries to qualify for both programs. The credit equals 70% of the first $10,000 of a qualified employee's salary.

So who qualifies for this credit? Business owners do, as do their spouses. However, their children do not, as anyone related to more than 50% of the owners of a business are ineligible. To activate this credit, you must have experienced a 50% reduction in revenue compared to the same quarter in 2019, or a 20% reduction in 2021. You must also be in a trade or business, so most agencies would qualify.

To learn more about Employee Retention Credit 2021 implications for your taxes, please reach out to me. And of course, please visit https://craigcodyandcompany.com/agency-podcast/ for more informative, money-saving podcast episodes like this one.

• FREE COVID Loan Grant Calculator Download
• Website: www.theprogressivedentist.com
• Twitter: @CraigC2742
• LinkedIn: https://www.linkedin.com/in/craigcodycpa

Craig Cody is a Certified Public Accountant, Certified Tax Coach™, business owner, and the host of The Progressive Dentist Podcast and The Progressive Agency Owner Podcast. Prior to his current work, Craig spent seventeen years with the NYPD, where he retired as a Lieutenant in September 2000. Craig is an expert in helping his clients legally reduce their tax liabilities and keep more of their money. Through his podcast, Craig helps dentists grow their practices through smart financial decisions and through financial education of the kind that isn't offered in dental school.

Employee recruitment strategies that can help you overcome staffing challenges during the pandemic is the key topic. Hear insights about:

• How Drew and his Agency Management Institute recognized a need for a conference specifically designed for small agencies
• How the Build A Better Agency Summit, being held in Chicago on August 10th and 11th, is being tailored to teach small agency owners how to run their businesses better
• What exciting and informative topics will be covered at the Build A Better Agency Summit, and what health and safety precautions have been put in place
• Drew offers employee recruitment strategies for agencies that are struggling to retain and hire new team members
• Why it is important to make sure that you are investing in your staff and constantly recruiting, and why you should be flexible and understanding
• What strategies Drew recommends, including augmenting your team with freelancers and streamlining and speeding up your hiring process
• How more than 50% of employees in the US are presently considering leaving their current jobs, and what factors are contributing to that statistic
• Why taking care of your team members is crucial, especially given the challenges they may be facing in their personal lives due to the pandemic

Due to the unprecedented challenges of the global pandemic, many agencies are experiencing challenges recruiting and retaining talented employees. My encore guest for this week's episode of the Progressive Agency podcast is Drew McLellan from the Agency Management Institute. Drew is an expert at helping agencies tackle the tough challenges they face, and in this episode, he shares employee recruitment strategies and tips to help agencies deal with their staffing challenges in these difficult times.

As Drew explained during our conversation, employees are facing major life challenges and it is inevitable that some employees will make the decision to leave. That's why it's crucial that you are flexible and accommodating with your existing employees. Show them that you want to help them address these challenges. Employees who recognize that their employers are looking for solutions are more likely to stay.

Additionally, Drew says it's important to find ways to speed up your hiring process. Sky-high levels of job openings mean your prospective employees have multiple options. The quicker you can speed them through the interview and hiring process, the better your chances of being the first to offer them a position. You might also consider adding freelancers to your team to help cover any gaps as we slowly begin to emerge from the pandemic.

Most importantly, understand that employees may be leaving not because they choose to but because they have to due to circumstances outside of their control. Some of those employees may return at a later time once things settle down again; some may not. Showing empathy and understanding will go a long way toward encouraging these employees to return once their circumstances improve.

On August 10-11, 2021, Drew and the Agency Management Institute are offering a one-of-a-kind conference specifically designed for small agencies with fewer than 100 employees. There will be numerous guest speakers and experts who can offer you valuable insights into how to grow your agency, overcome the challenges you're facing, and best practices for maximizing your productivity and improving your profitability. You can learn more about the upcoming event at https://agencymanagementinstitute.com/babasummit/.

To learn more about Drew McLellan and the Agency Management Institute, please visit their website at https://agencymanagementinstitute.com/. And of course, please visit https://craigcodyandcompany.com/agency-podcast/ for more informative, money-saving podcast episodes like this one.

• FREE COVID Loan Grant Calculator Download
• Website: www.craigcodyandcompany.com
• Twitter: @CraigC2742
• LinkedIn: https://www.linkedin.com/in/craigcodycpa

• Learn More About the Build A Better Agency Summit August 10-11 in Chicago: https://agencymanagementinstitute.com/babasummit/
• Email: [email protected]
• LinkedIn: www.linkedin.com/in/drewmclellan
• Website: https://agencymanagementinstitute.com/

For 30+ years, Drew McLellan has been in the advertising industry. He started his career at Y&R, worked in boutique-sized agencies and then started his own (which he still owns and runs) agency in 1995. Additionally, Drew owns and leads the Agency Management Institute, which advises hundreds of small to mid-sized agencies on how to grow their agency and its profitability through agency owner peer groups, consulting, coaching, workshops and more.

Creating cash flow by investing your agency profits into real estate or other vehicles can help you grow your wealth. Hear insights about:

• How Gumas Advertising found its niche in "Challenger Brand Marketing" focused on helping businesses compete with huge, well-funded competitors
• How John got involved in real estate investing with the goal of creating cash flow that could support him even after he sold his agency
• How the first real estate purchase John made was the building his agency's office was located in, so that he could be his own landlord
• Why John strongly recommends you consider buying your office, even if your team is working remotely for the foreseeable future
• How buying one building allowed John to continue buying other buildings and further growing his monthly cash flow
• Why John believes it is important to use the money your agency generates to further grow your assets and investments
• How John has invested in new construction projects, and why it is important to make connections with people you can trust when investing your money
• How using your non-taxable accounts to fund your investments can save you big money in taxes
• Why it is important to build the right team with the right real estate, legal and financial advisors who understand your goals and how to get you there
• Why John considers it less risky and more profitable to spend a little more money buying properties in better areas

As I've discussed before, investing some of your money to generate reliable monthly income independent of your agency's work can be a powerful way to build wealth. Creating cash flow through your investments gives your money the power to grow itself. My guest for this week's episode of the Progressive Agency podcast is John Gumas, a branding and marketing expert and the founder of Gumas Advertising. During our conversation, John shares powerful tips for creating cash flow and making your money work harder for you by investing in real estate, and he explains the benefits of smart real estate investing.

John wanted to create passive investment income that would pay him as much each month as what he was making through his agency's work, so that if he decided to sell his agency he wouldn't be caught flat-footed. His first real estate investment was buying the office building his agency was working in, so that he could become his own landlord.

He then set up a second business to oversee his real estate investments. Essentially, John's agency was paying John's real estate business rent each month, allowing John to keep his money by transferring it legally between businesses. This had an unexpected upside when the global pandemic caused John's agency team to begin working from home, because John was able to repurpose the agency's former office and bring in even greater wealth.

John's first building purchase was a smart one, and it allowed him to then reinvest his money into a second building purchase nearby. This snowball effect has resulted in John owning multiple buildings and even being able to invest in new construction. All the while, he's still drawing in money from his agency in addition to his rental income from his properties, dramatically increasing the value of John's investment portfolio. John truly is putting his money to work to build his wealth by creating cash flow through real estate investing, giving him financial freedom in a way that his agency work alone wouldn't have been able to achieve.

If you would like to learn more about John Gumas, Gumas Advertising or challenger brand marketing, visit their website at https://gumas.com/.

And of course, please visit https://craigcodyandcompany.com/agency-podcast/ for more informative, money-saving podcast episodes like this one.

• FREE COVID Loan Grant Calculator Download
• Website: www.theprogressivedentist.com
• Twitter: @CraigC2742
• LinkedIn: https://www.linkedin.com/in/craigcodycpa

• Website: https://gumas.com/
• LinkedIn: www.linkedin.com/in/john-gumas-08046/
• LinkedIn: www.linkedin.com/company/gumas-/
• Facebook: www.facebook.com/Gumas.Advertising/
• Twitter: @Gumas_SF

A veteran of the advertising and interactive marketing industry, John Gumas founded Gumas Advertising in 1984. Today, the award-winning firm is consistently named as one of the top branding and interactive marketing firms by the California Business Times.

John is recognized as one of the country's foremost authorities on challenger brand marketing. He is the author of the popular books "Marketing Smart" and "Challenger Brand Marketing" which describe how challenger brands can effectively develop marketing strategies to take on their larger competitors. In addition, John has been an adjunct professor of branding, advertising and interactive marketing, a sought after speaker and a regular columnist for several publications and blogs.

John currently sits on many boards, including the San Francisco Giants CF, The San Francisco Chamber of Commerce, San Francisco State University Foundation, The Greater San Francisco Advertising Club, The Bay Area Sports Hall of Fame and The Elios Society.

John was recently inducted into the San Francisco State University Hall of Fame, and was Alumnus of the Year. John has also been recognized for his extensive community service and leadership by the U.S. Senate and the San Francisco Giants.