Q4 2023 A PUBLICATION OF Go Figure Accounting
Good Neighbors
For Bryan Fifer success begins and ends with community first.
SAVE THE DATES!
FEBRUARY 17, 2024 • Ocoee Lakeshore Center
• Chili Sampling • Huge Kids Zones • Entertainment • Food Trucks & Cash Bars • Craft & Vendor Market APRIL 6, 2024 • Hamlin Town Center
• Craft Beer Sampling • Hamlin Cruise-In Car Show • Craft & Vendor Market • Food Trucks • VIP Zone Available
BENEFITING LEGACY EVENTS FOR EDUCATION Legacy Events for Education is a 501c3 non-profit organization. Our mission is to inspire students, teachers and communities to leave their legacy on the world. Since our inception, Legacy has delivered over $60,000 in scholarships to reward local graduates for exemplary volunteerism and leadership. Through our Parent and Student Academy's Legacy provides training to the community on the college entrance process and funding education as well as financial education seminars to students. By attending these charitable fundraisers you can help us continue to make a difference in our community!
LEGACYEVENTSFORED.ORG
LEGACYEVENTSFOREDUCATION
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The Good Neighbor Meet Bryan Fifer is your hometown BFF
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6 Points of Interest BET ON BLACK: Use the biggest deal
days of the year to restock
TRENDS: The rising cost of Girl Scout
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16 Taken into Account
Relax, It’s Just Taxes Profit First tips and tricks for handling the most stressful time of year.
cookies, flying cars, and careers in accounting.
Employee Spotlight Joslyn Jones knows good numbers.
QUICKHOOKS: The IRS warns of new scams around art buying.
CPA Q&A Rachel answers your pressing tax planning questions.
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21 Goal Getters
Agent of Shield Tracey Forrester on changing lives and changing fortunes. .
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KEEPING TRUST
FOURTH QUARTER 2023
A P U B L I C AT I O N O F
Rachel Siegel, CPA Owner, Small Business Development Expert Cindy Lovan, EA Accounting, Tax Yvette Brown Accounting Beth Kisner Communication Coordinator Joslyn Jones, Kirstin Pastorick Bookkeeping Wendy Reed Strategic Account Manager
NE Office: 732-374-9641 SE Office: 407-855-6648 gofigureaccounting.net
PRODUCED BY
Jamie Ezra Mark Creative Director Heather Anne Lee Editor Rheya Tanner Art Director Josh Clark Designer Wendy Mak Designer Andrew Ontko Designer Evan Miklosey Web
407-573-6061 hello@emagency.com emagency.com @EMagencyinc Goals is published quarterly by Go Figure Accounting. Copyright© 2023 Go Figure Accounting. All rights reserved. Reproduction in whole or in part without written permission is prohibited. Opinions expressed in the articles are those of the authors and do not necessarily represent the opinions of Go Figure Accounting.
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R A C H E L’ S D E S K
In the famous
words of words of Ferris Bueller, “Life moves pretty fast. If you don’t stop and look around once in a while, you could miss it.” Indeed, we live our lives second by second, and sometimes it feels impossible to take a moment to step back and survey what is right in front of us. The goodness. The lessons, even the hard ones. We don’t take the time to see how all the little pieces fit together, to see just how much we’ve been blessed and count it out loud. Like most, we can say unequivocally that this year has been a tumultuous blur of, “Yes, and …” moments. Joy, and sadness. Grief, and delight. Success, and setback. Failure, and fortitude. Elation, and exhaustion. Hard work, and playfulness. Understanding, and confusion. Longing, and thankfulness. Was Go Figure successful? Yes! We are thankful for financial stability, an expanding ProfitFirst portfolio of clients, a growing team, and exciting opportunities on the horizon. We are equally delighted to report that most of our clients saw their businesses reach new milestones as well, which you will read about throughout this issue of GOALS. Take Bryan Fifer, for example. Bryan and I met at a Horizon West Professionals networking meeting, and I was charmed by him right away. Genuinely a nice guy, Bryan is the ultimate community advocate, placing the value of long term relationships over today’s bottom line every single day. And that has paid off in spades as his State Farm business reached epic new milestones this year. The same can be said for Tracey Forrester, another community-first powerhouse whose leads with heart and delivers with purpose. It’s nice to see the good guys win. But even if your business struggled this year, and there are many that have, here’s the good news: Progress doesn’t have to be perfect to be powerful. And a setback doesn’t mean we give up. In this season, we encourage everyone to celebrate the good within the hard, personally and professionally. Cheers, to a peaceful and profitable fourth quarter, my friends. We are so grateful to know you and to serve you.
We are thankful for financial stability, an expanding ProfitFirst portfolio of clients, a growing team, and exciting opportunities on the horizon.
Rachel Siegel, CPA rachel@gofigureaccounting.net
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POINTS OF
Bet On Black Need to refresh your inventory or invest in new equipment? Q4 is your best chance to scaore great deals… and write them off!
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Have you been planning to invest in some new tools for your business but just couldn’t bring yourself to pay full price, especially in this economy? Good news! The best time to buy is now. For small business owners, the U.S. holiday shopping season is a perfect opportunity to refresh inventory and acquire new business equipment on a budget. It starts with Black Friday and Cyber Monday, but really… deals can be found all season long. But what, exactly, are the best opportunities for small businesses this year? What are the major sales you don’t want to miss? And which purchases do you need to move your business forward in the year ahead?
Before you start hunting for deals, you should have a solid idea of what you need and why you need it in the first place.
The truth is... the best Black Friday deal is whatever your business needs most. Do you need to level up your skills or clock some continuing education hours? Educators, influencers and even professional development courses can all be scored at a fraction of their usual cost. If you have your eye on something specific, sign up for emails now so you get notified of any and all upcoming sales. Need new tech or software? Ditto. Many retailers (both in-store and
FA C T S & FIGURES
$1.14
trillion Global consumer online spending during the Holiday Season in 2022. SOURCE: SALESFORCE
72.9 MILLION
Black Friday was the biggest day for in-store shopping in the U.S. in 2022, reaching 72.9 million consumers, up almost 15% YoY.
85%
The amount of U.S. consumers expected to shop during Cyber Week 2023, up from 71% in 2021.
$32544
The average amount spent on holiday purchases over the course of Cyber Week, up 8% from 2021.
77% of in-store shoppers indicated they shopped specifically for Small Business Saturday.
online) offer laptops and desktop computers bundled with software you’d have to pay more for if you purchased them separately. If you don’t use a VPN (virtual private network) and antivirus software yet, you should look for deals in this department. Before you roll up your sleeves and start hunting for deals, you should have a solid idea of what you need and why you need it in the first place. Give your inventory an honest review and decide where to best allocate your money. Many online retailers (like Amazon, Best Buy, or eBay) allow registered users to create wishlists where they can add the items they’re planning to buy. You’ll be notified via email or mobile app whenever an item from your list gets discounted. And once you have a wishlist in place, you can use tools like Google Shopping to compare prices across several vendors and see where you can get the best bang for your buck. Price comparison platforms come with product reviews, spec sheets, and filtering options, so you get a complete overview of the items you’re looking for. You should also monitor your favorite retailers’ social media posts. Often, sharing deals on social media is part of their marketing strategy — and monitoring these services’ social media presence can help you snag the best deals and lowest prices. And again, sign up for emails. Many retailers will offer early savings or stackable savings to their email subscribers. Q4 is the perfect opportunity to beef up your business resources and reinvest some of that hard-earned cash. And now that you know how to make the most of the holiday shopping season, all that’s left to do? Get out there and shop in a way that benefits you and your business”
A WORD OF CAUTION Before you make that too-good-to-pass-up purchase, check the return policy fine print. Even with solid planning and diligent research, not every purchase you make will be a keeper. Deals fluctuate across the shopping season, so don’t feel bad about returning an item you got on Black Friday and buying it for less from a different vendor.
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MATTERS OF
INTE REST
COOKIE MONSTER The price of Girl Scout cookies is going up. To help cover the rising costs for the bakeries that produce them, boxes of Thin Mints, Caramel deLites, Trefoils and the rest that used to cost $5 will now sell for $6 in many areas.
Beginning October 1, interest rates are rising! For individuals, the rate for overpayments and underpayments will be 8% per year, compounded daily. The rate of interest is determined quarterly. For taxpayers other than corporations, the overpayment and underpayment rates are the federal short-term rate plus 3 percentage points.
“Creativity in art is a beautiful thing, but aggressive creativity in art donation deductions can paint a bad picture for people pulled into these schemes.”
8%
for overpayments (exceeding the amound owed);
7%
for corporations, 5.5% for the portion of the corproate overpayment exceeding $10,000
8% 10%
for underpayments
for large corporate underpayments. 8 / goals / fourth quarter 2023
So begins a warning from IRS Commissioner Danny Werfel cautioning taxpayers against claiming exaggerated deductions for donations of artwork, as it sees a rise in groups promoting such schemes, especially for wealthy taxpayers looking to reduce their tax bills. According to the IRS, promoters entice taxpayers to purchase different kinds of artwork, claiming it’s at a “discounted” price. The promoter often promises that the artwork is worth far more than the purchase price, and so they advise purchasers to donate the artwork after waiting at least one year and to claim a tax deduction for an inflated fair market value, often far more than they originally paid. They may recommend that taxpayers donate art on an annual basis and enable them to purchase a quantity of art that guarantees a specific deductible amount. The IRS has been investigating such schemes, and audits have led to over $5 million in additional taxes being imposed. “There are legitimate ways to claim an art donation, but taxpayers should be careful to understand the rules and watch out for inflated values or questionable appraisals,” says Werfel. “Beauty is not always in the eye of the beholder when it comes to tax deductions of art.”
POINTS OF INTEREST
DRIVING FORCES
On the Road Again Reading this on the ride to work? You’re not alone: Work-from-home rates are the lowest they’ve been since the start of the pandemic. Last week, fewer than 26% of US households had someone WFH for even one day, down from 37% of households in early 2021, surveys by the Census Bureau show. As employers push to get workers out of their yoga pants and back at their desks, only seven states now have a remote work rate above 33%, compared to 31 states while the pandemic was raging, according to Bloomberg.
Flight of Fancy California-based startup Alef Aeronautics won regulatory approval from the FAA to begin testing the first flight-capable car, which can take off and land vertically, and drive on the road as a low speed vehicle.
Class Dismissed
College students have crunched the numbers, and a career in accounting is no longer adding up. According to the most recent data from the American Institute of Certified Public Accountants, the number of US students graduating with either a bachelor’s or master’s degree in accounting dropped 7.4% during the 2021–22 academic year from the year before, the largest one-year decline since at least 1994–95. Why have these degrees become so much less popular? • Pay has stagnated. According to the WSJ, the average starting salary for recent accounting graduates is $56,000, a number that has not budged since 2008 when adjusting for inflation. It’s also well below starting salaries in tech or finance. • Steeper education requirements. Accountants require a fifth year at a college, an expense that is proving prohibitive for many considering a profession that was once seen as a path to the upper middle-class for poorer Americans. With more than 300,000 accountants and auditors leaving the field over the past two years and the pipeline drying up, large and small American firms are writing off the idea of finding help at home. PwC has outsourced to Malaysia, Argentina, China, India, Mexico, and the Philippines, while Deloitte’s US business employs almost as many people outside the US as it does overseas.
THE PRICE OF PARENTHOOD A middle income family with two children is now estimated to spend $310,605 to raise both children to age 17, not including the cost of higher education. That’s an average of $9,135 per year, per kid in additional expenses. Is that higher or lower than expected? SOURCE: BROOKINGS.EDU
The “Model A” is a fully electric vehicle with a driving range of 200 miles and flight range of 110 miles. As a low-speed vehicle, by regulation it weighs less than 3,000lbs and can drive no faster than 25mph. The vehicle can seat two people. Preorders are open for the $300,000 car which is set to be released by the end of 2025, according to CNBC.
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t Go Ne 10 / goals / fourth quarter 2022
the ood eighbor Bryan Fifer is building a wildly successful business with authenticity. His secret? Putting the ‘you’ back in community. STORY HEATHER ANNE LEE PHOTOGRAPHY FRED LOPEZ
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t’s the first Wednesday in November and Bryan Fifer strides into the room at Horizon West Professionals with an eager, genuine smile at 7:45 a.m. He radiates such a warm and welcoming presence that he immediately puts everyone in his path at
ease. That’s part of his effervescent charm. All who meet him treasure his curiosity; conversations linger and you always feel heard. Indeed, the slow, hyper-attentive way he listens and engages with people has become a lost art in today’s distracted age. He makes goodness look attractive. He both embodies the boyish charm of Jake from State Farm
and a modern-day take on Mr. Rogers. Indeed, Fred Rogers once said, “My mother would say, ‘Look for the helpers. You will always find people who are helping.’” Bryan is one of those helpers. And he does it while exemplifying the qualities we most desperately need now: neighborliness, gentleness, deep listening, creativity, emotional honesty, lack
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of pretense, and an unceasing focus on raising healthy, curious, and confident communities. And he does it while building a wildly successful insurance business. His secret? Authenticity.
LOCAL ROOTS Did you know that everyone’s favorite neighbor, Mr. Fred Rogers—whose lessons of kindness, responsibility, and community endure long after his death— started discovering his purpose while studying music composition at Rollins College in Winter Park? He learned the importance of relationships on that campus, a spark ignited in the intimate, personalized learning environment that became his home. He learned how service to others is life’s ultimate calling and that community is the driver of good. Like Mr. Rogers, Bryan calls Orlando home, albeit as a native and not just a college student. “I was born and raised in Orlando. I went to high school at Bishop Moore, then Florida State University, and back to Orlando after I graduated. Orlando has always been home; my mom still lives in the same house where I grew up, which is very special, I think. So after FSU, I came back, and met my wife here—she actually went to West Orange High School. When we got married 16 years ago, we moved to Winter Garden. And I can’t imagine living anywhere else.” Although Orlando has always been in the picture, insurance was not. His undergraduate degree was split between hospitality
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“It’s so important to have a good CPA that’s really helping guide you. Sometimes, you can’t control your losses and you don’t really want to focus on the negative, the cancellations, the people that are going to leave you. It’s more important to stay focused on the positive… who can I keep helping and growing?”
management and sports management. “Originally, I thought I wanted a career with Disney, and that’s where I started as a lifeguard. But I ended up working for the RDV Sportsplex, which was the home of the SolarBears and the Magic, before transitioning to the YMCA,” he says. Serendipitously, the chairman of the Board of Directors at the Y where Bryan worked was a State Farm agent. “Everybody knew Robin,” he says fondly. “If Robin told you to do something, you just did it. He just had this charisma and influence. I got to see his success in the community, how he was really looked up to, and that impacted me greatly.” Bryan, of course, became a State Farm customer of Robin’s, and worked closely with him over the years in a mentor-like role. “After a few years working together at the Y, Robin said to me, ‘You know, you’d really be a good State Farm agent.’ And that pretty much planted the seed.” The seeds of growth, however, took longer to root. Though Bryan connected with a recruiter and was deemed a good fit for State Farm, there were other challenges in the economy— ahem, 20072008—that prevented him from launching his own agency. “A friend of mine had just become a State Farm agent, so I said, ‘I’ll come to work for you for a year. Let me just learn the business.’ I ended up staying there nine years! Number one, I really enjoyed it; but number two, I got married and I had two children, so stability was im-
portant. Thankfully, we really balanced each other well. She let me run the office so I could kind of operate it like my own agency. It gave her the freedom to be able to travel and do things that she wanted to do and know that she had somebody that could run the business.” But Bryan never lost that itch to do it for himself. So, in 2016, when State Farm approached him about an opportunity to grow in Horizon West, he took the leap. “A lot of people think we’re franchises. We’re not, we’re independent contractors with State Farm. State Farm hires agents who actually go out in the community and build relationships with customers, one person at a time. That’s how we grow our business. To me, it felt a lot like my work at the YMCA. I was helping people. There is this inherent mission behind the why. At State Farm, we help people manage the risks of everyday life, recover from the unexpected, and realize their dreams.”
every day, hustling, trying to grow your business. I think it was Robin who gave me this great advice: People have to see you. Be everywhere and get involved with everything. In a year’s time, they’ll think you’ve been in business for 10 years.” And that’s exactly what Bryan has done. From getting his car wrapped to sponsoring events at local schools to putting up tents at chili cook-offs and carnivals, fests and fairs. “I think I did 57 events my first year, and easily doubled that my second year,” Bryan laughs. “People may not have known me, but they recognized my face and my name, and that opened so many doors.” The marketing piece is just one aspect of Bryan’s business. Obviously, money plays a role, too. “I believe that scared money doesn’t make any money,” he says. “If you want to grow, you have to be investing in your business constantly. I know for a fact that for every dollar I invest, I get two or three back. When I first started, I set a business plan of GROWING PAINS where I wanted to be at one year, “When you become a State two years, three years, five years Farm agent, there are two differand 10 years. So, one of my 10ent models,” Bryan explains. “You year goals we’re about to hit next have what’s called a traditional week. This year, which is year role, which means that you’re seven, will be my best year yet. We taking over an office from an will grow 30 or 40% probably this agent who has retired. So you start year, and I’ll hit my 10 year goal with an active book of business. three years early.” I started the opposite way, which Of course, Bryan hasn’t done is called New Market or Scratch that alone. Over the years, he Agent, meaning just like any has built a team of people to other business, you open and you support him at the agency. He don’t have any customers. And so, now has eight people working you’re hitting the ground running for him, a mix of junior agents
and support staff, and the team recently moved into a new office space that’s nearly three times larger than as his old office. There’s room for at least four or five more people, more if he converts the conference room into more offices. “Insurance is a market, like stock market, real estate, and other things. So, you’re always going to have peaks and valleys. So, for example, during COVID, we lowered rates by over 15% because nobody was driving, and nobody was having accidents. Not very many other companies did that. They may have given their customers a refund or something small. So, that put us in a very competitive position. I can’t take credit for that because I don’t control rates. But every year since then, it has been very, very competitive.” This year, however, will be challenging in new ways, especially given Florida’s difficult insurance climate. But Bryan remains optimistic. “There’s always the opportunity to grow. Auto and homeowner’s insurance are the two big drivers—those are insurance policies that people need. So, they’re going to shop for those policies; they have to buy them. With the amount of people that are moving to Florida and with the challenges that are going on with other companies, we’re in a really good position to help them. We’d like to continue to grow into some of the non-demand products that we offer, like life insurance and disability.
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“State Farm’s number one in the country for life insurance, but a lot of people don’t even know we sell it. From homeowners to auto to life, we, literally, insure every aspect of your life. With these options, we can really take a holistic look at your financial situation and make sure that you’re protected from everything that could happen.”
When he first became an agent, Bryan worked with a different CPA, who he really liked. But when that agent decided to retire, he sold his book of business to a big CPA firm in downtown Orlando and Bryan got lost in the shuffle. “When I met Rachel in 2018, the biggest thing she offered was that relationship piece that I was missing. I want the advice, I want your opinion, I want the ugly truth. Even if I can’t do STRATEGIC PARTNERS something now, Rachel can tell me In addition to his vibrant, here’s how we get there. She’s very dedicated team, Bryan also gives caring and very compassionate, credit to Rachel Siegel. “She’s the and she treats your business and first CPA that I’ve met that does your books like it’s hers.” things like we do at State Farm… The ugly truth of Bryan’s busishe takes a holistic look at the ness is that “The first couple of big picture.” years, I didn’t make any money. “When Rachel and I first start- Rachel came into the picture ed working together, we would between year two and three, and look at what percent of revenue there was work to be done. I was I was spending on different putting everything in QuickBooks things. Let’s say rent was 10% of so that I could send it to my CPA, my revenue for the year. Well, but we were never reviewing it. then I stayed in that space for They weren’t helping me cate6-years and my revenue grew, gorize things. My payroll wasn’t but my rent stayed the same. So, linking in and I had to manually that came down to where I was do that. So, as soon as I got with only spending 5% of my revenue Rachel, she dove right in and said on rent. Well, then you jump let’s clean you up and let me show back to a space like this, and my you how it needs to be done. That percentages almost went back to way you’re doing it right.” year one. “Being a business owner, you “But as soon as I get a little bit have to be on top of your money, further down the road, I can afespecially—that’s our lifeline. ford to add one more team mem- And so, within a year my books ber, and then one more. That were clean. I knew where I was gowas part of the reason to invest ing to be. I can predict where my in this new space is that I can revenue is going to be, and where grow another four or five team my expenses are going to be. members in this office easily. “When we actually started havRachel helped strategize that. ing money left over every month, She’s been hugely influential in Rachel helped me figure out, the growth of my business.” okay, this needs to go into sav-
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ings, this needs to go into taxes. And that’s kind of how we rolled into Profit First. I was familiar with the book, but I had never read it. And that was ok. Rachel laid it all out and I went all in.” The first thing they did was pay down debts. “Once we got debtfree, it became much more fun. Rachel encouraged me to make it personal, so we decided to put in a pool at the house. We paid off that pool in 12 months thanks to Profit First. It just works. It’s money that you just systematically set aside. More recently, Profit First is helping pay off the new building space. I spent $26,000 on my first build-out, and this one was $130,000. That will take a little longer to pay off, but I’m not feeling it. Which is amazing.” For Bryan and his team, it all comes down to relationships, especially in a service-oriented business. “That’s why we focus every day on just making sure we’re taking care of our current customers. Nobody likes it when your rate goes up, but our clients appreciate that we’re reaching out, we’re being proactive, we’re trying to guide them, maybe making some small tweaks, you know, to keep the rate down a little bit. But, in the end, it’s just about connecting with people.” Perhaps the reminder we most need from Bryan Fifer today— like the one Mr. Rogers demonstrated for 50 years—is this: goodness is not only possible; it’s also compelling. It’s desirable. He’s walking proof that they can and do exist in the world. And they can be profitable too.
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TAKEN INTO
RELAX, IT’S JUST TAXES Taxes are the bane of most business owners. But with the help of Profit First, they don’t have to be. Taxes don’t have to be overwhelming. With Profit First, you can make sure you’re paying the right amount of taxes and staying on top of them throughout the year. As an entrepreneur, you need to understand the different types of taxes and how to deal with them.
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First, you need to differentiate the types of taxes that may affect your business. Depending on the type of business you own, you may be subject to income taxes, payroll taxes, self-employment taxes, or other taxes. You’ll also need to know how to file your taxes and
when you’re required to make payments. Once you know the types of taxes you’re required to pay, you need to figure out how to pay them. You may be able to pay them online, by mail, or in person. You should also look into tax deductions that can help reduce your tax bill.
3. Following Profit First and creating a tax account does NOT Revenue (Total Revenue negate the need to work minus Materials and with a tax professional. Here’s what you Subcontractors costs) A qualified tax proshould know: for taxes. If your tax pro- fessional can help you 1. Paying taxes is fessional is not a Profit legally reduce your tax actually a GOOD thing. First Professional, they liability with strateBusiness expenses, such It is proof that your might tell you 15% isn’t gies that allow most of business is profitable. as office supplies and enough. Why? Because your cash to stay with travel expenses, may be Paying taxes is only your tax professional is your business (or flow problematic if you don’t deductible. looking at the “bottom through to you, the have the cash on hand to line” on your Profit and Finally, you need to business owner.) Bepay them. That’s where know how to stay on top Loss statement, or your ware of tax professionals of your taxes. This means Profit First comes in. “profit on paper” after all whose primary strategy The Profit First system setting up a system for business expenses have is running up expenses tracking income and ex- helps you proactively been deducted. But with to avoid paying taxes. set aside money to pay penses, making sure you Profit First, you don’t your taxes, so you don’t run your business based The Framework file your taxes on time, have to dread tax day and paying taxes when solely on your P&L. The standard Profit First they’re due. If you’re not anymore. This is one reason why bank account known as 2. Profit First recsure about any aspect of working with a Profit the Tax account is spetaxes, you should consult ommends setting aside First tax professional is cifically designated for 15% of your Real a professional. so important. income tax purposes.
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When setting your tax percentage, I can’t say enough… Always, always, always estimate high; it’s better to have more tax savings set aside than you need than to not have enough.
confirm this with a tax professional. If you pay quarterly estimated taxes for your Twice a month, you albusiness, the funds in the locate 15% of your real Tax account will be utirevenue to this account. lized for those payments. Real revenue refers to However, there are imcash receipts minus any portant considerations to cash spent on invenkeep in mind. When your tory or other cost of sales exceed the previous goods sold activities. By year’s figures, the allofollowing this percentcated funds should cover age-based approach, your current-year tax you can ensure you have liability. It’s crucial not to sufficient funds set aside view these excess funds as for tax obligations. surplus for other purposI want to be sure you es. They are intended to hear me say that you account for the increased need to confirm your tax tax liability resulting from percentage with your higher sales. tax accountant. The It is important to note industry standard for that this is only covering income tax is 30% of net income tax, not sales tax. profit (your profit after You should be charging you’ve subtracted your your customers sales tax deductible expenses). for each of their purWhen looking at gross chases and setting that income (which is what amount aside for when we’re doing with this you make that quarterly method), most creative payment. We’ll cover businesses will likely that in the next section. need to save 20-25% When setting your for taxes, but you must tax percentage, I can’t
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say enough… Always, always, always estimate high; it’s better to have more tax savings set aside than you need than to not have enough. HOW TO HANDLE SALES TAX
It’s crucial to note that the Tax bank account discussed in Profit First is not intended for sales tax. The 15% allocation mentioned earlier is specifically for state and federal income tax and does not include a portion for sales tax. Sales tax regulations vary by state, and businesses may be required to collect and remit sales tax for multiple states. The remittance frequency is typically quarterly or annually. To ensure that you have funds set aside for future sales tax remittance, it is recommended to create a separate bank account specifically designated for sales tax. These funds collected
for sales tax are not your funds; they are to be remitted to the respective state governments. It’s essential to avoid the temptation of using these funds for other purposes, as it may lead to a shortage when it’s time to fulfill your sales tax obligations, potentially requiring you to borrow money to meet those payment requirements. WHAT ABOUT OTHER TAX TYPES?
There are several other types of taxes you may encounter — property tax, franchise tax, etc. These taxes are paid from the Operating Expense bank account in your Profit First structure. They are not included in the 15% that is set aside for the Tax bank account. Taxes are no one’s favorite subject, but they are much less stressful when you are prepared to make the payments.
CPA Q&A
Tactics for Taxes
Rachel answers your most pressing year-end business questions.
Rachel Siegel, CPA
Does my business really need a CPA and a bookkeeper? Great question! Yes. You need both a CPA or EA and a bookkeeper. Why? Because tax preparers and bookkeepers handle different aspects of your finances, there are big benefits to enlisting the services of both. Bookkeepers ensure your books are accurate and up to date, allowing you to keep track of your bills, understand your cash flow, and prepare to meet with your tax preparer. Your tax preparer can then use those clean books to prepare your taxes. If your books are a mess, however, you end up spending more time and money while your tax preparer plays catch up. Even worse, you will have missed out on having current information on your financials for however long your books have been outdated, likely leading to poorer business decisions along the way. By enlisting the services of both tax preparers and bookkeepers, you have access to a broader range of support. Your
bookkeeper will have a better understanding of your business operations and finances on a day-to-day basis, while your tax preparer can answer any questions you may have about the tax implications of your decisions. In addition, you can reduce the risk of errors by having financial professionals with different areas of expertise review your books.
My financial planner says I should really be working with a CPA on tax planning. Can’t one person do both? Your financial planner is right, and here’s why: With tax laws and regulations constantly changing, it can be difficult for financial advisors to stay up-to-date and provide their clients with the most robust tax strategies. This is why partnering with a tax planning CPA can be a valuable asset for financial advisors. Tax planning proves to be a very important aspect of wealth
management for clients. Did you know that: A whopping 80% of investors think that their financial advisors should focus on minimizing their taxes?! But that’s not really their job. Their job is to help your money grow in the most efficient way possible. By working alongside a CPA, financial planners can ensure that their client’s investments are structured in the most tax-efficient way possible. By working together, it’s a win-win for the client.
Did you know… A whopping 80% of investors think that their financial advisors should focus on minimizing their taxes. But that’s not really their job.
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TEAM SPOTLIGHT
The people who put the “go” in Go Figure
Just Ask Joslyn Got an accounting problem? Joslyn Jones has the solution — and if she doesn’t, she won’t stop until she finds it.
In the dynamic field of accounting, versatility and a breadth of knowledge are key. So is a good sense of humor. Which is perfect if you are Joslyn Jones, a vivacious bookkeeper who possesses a diverse skill set, a passion for continuous learning, and a raucous laugh. Joslyn knows better than anyone that adaptability is the key to success. While newer to the world of accounting, her ardent attitude and background in hospitality and service has equipped her to tackle any challenge head-on. For Joslyn, every endeavor is an opportunity for growth and learning, and she embraces this with gusto.
How would you describe your specialty?
I have a Spotify playlist filled with a variety of random songs that is always playing. It may seem a little chaotic, but the element of surprise and the colorful vibes it brings to my day or life-milestones may result in a tax task at hand is something I truly credit or a new tax burden — we’ll appreciate. give you sound advice.
I consider myself a “Jill of All Trades,” striving to acquire a wide range of knowledge and skills. Outside of work, how do
you spend your time? What’s the biggest misconception about bookkeeping?
Is there a current song or podcast that you can’t get enough of?
You can find me hitting the gym, enjoying a drink by the pool with friends, or curled up on the couch with my latest read
If you weren’t in accounting/bookkeeping, what would be your dream job and why?
Right now, my dream job would be a personal trainer or a physiIt’s impersonal and solely focused cal therapist. Given my current on numbers and spreadsheets. At fascination with fitness, I would Go Figure, we believe in getting to What’s something that peolove to explore the science beknow our clients. By understand- ple don’t know about you? . hind it and delve deeper into the ing the individuals behind the Here’s a quirky side of me: I mechanics of strength training business, we can provide support, have an unapologetic love for all and bodybuilding. However, my and help them make informed things sparkly. I want everything aspirations may change after a financial decisions. We care covered in silver, rhinestones, challenging workout session. about you and your family, and and glitter. And don’t get me I’m sure that answer will change we’ll be a step ahead when normal started on my peacock obsession. after my next heavy gym day.
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GOAL GETTER
Agent of Shield Tracey Forrester on changing lives and changing fortunes. STORY TREMENE TRIPLETT PHOTOGRAPHY FRED LOPEZ
It’s only fitting to meet Tracey Forrester in one of the trendiest restaurants in downtown Winter Garden. Amid the catchy lights, great music and savory menu, Tracey fits right in with stylish threads and a precision haircut that defies gravity — she looks like a lady who knows things, and someone you’d want to know. And your assumption would be right. Instead of talking about community problems, she sees them as opportunities to create solutions and solve them.
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GOAL GETTER
Those who work with her describe her as a dynamic community leader, vivacious and energetic. “I’m honored by the description,” she says slightly blushing. “I love being involved in the community and creating what I want to be a part of.” When Tracey and her neighbors in the growing Horizon West area saw a tremendous need for business camaraderie, she didn’t wait for someone else to do something about it — she created one. Horizon West Professionals is no once-per-month, potluck type of organization, either. It’s an innovative, micro-local, referral-based 501(c) (3) networking group for those who work and live in the area. Meetings, chaired by Tracey, are high-energy affairs, and membership is industry-exclusive– only, one person per business sector represented. It was at one of HWP’s bimonthly networking events that Tracey met Rachel Siegel, owner of Go Figure Accounting. “Right away, she seemed very knowledgeable and trustworthy,” Tracey says. Turns out, she was
22 / goals / fourth quarter 2023
right. Tracey enlisted Rachel to help set up her business organization as an LLC, plus assist her with taxes and strategic planning. “She does my business as well as my personal taxes,” Tracey says of their three-year relationship. “One year, she saved me $17,000! Of course, that’s great, but over the years, I’ve really come to rely on Rachel’s advice. She’s more than just an accountant; she’s a friend and an advocate.” When she’s not creating networking groups, Tracey is a full-time realtor for Miami-based Xcellence Realty and a Prepaid Legal Service Independent Associate, better known as LegalShield and IDShield. Although Tracey has been in residential real estate for nine years, she has become most excited about LegalShield, despite only being at it for four-anda-half years. “LegalShield is becoming an even bigger passion than real estate because the peace of mind you get from having it is priceless,” she explains. Through LegalShield,
Tracey advises clients about membership that offers ‘round the clock attorney access, without steep retainers or costly attorney fees. Attorney services such as living wills, power of attorney and legal review of client documents are also provided under the membership fee, along with unlimited consultation. Tracey only sees an upside to utilizing the service for law coverage and identity protection. “If you’re proactive, instead of reactive, you’ll spend less money to deal with situations that could have been avoided, and it costs less,” she shares. “This is a very litigious society — it’s one of the oldest professions and a multi-billion dollar industry. And, identity theft is the fastest growing crime in the world.” While they may seem completely separate, Tracey gets the opportunity to combine her two favorite occupations. “In a lot of states, including Florida, you don’t need an attorney at closing,” she explains. “Buyers and sellers have legal
questions, but rather than spend $300-$500 an hour, they skip the attorney and Google the answers. Which, as you can imagine, can go horribly wrong. With LegalShield, you can use it to ask any question about the transaction, loan documents, or interpret the contracts. All as part of your membership.” Tracey also informs her real estate clients about the advantages of LegalShield for review of contractors’ home repair contracts, and the wisdom of estate planning to protect their new purchase. Where Tracey’s initial goal was to make an extra $500 per month, she has more than surpassed that goal. With enough to make LegalShield and IDShield her primary focus, right after raising her two daughters, Averie, 18, and Bryce, 16, Tracey is pumped about the future. “The sky is the limit,” she beams. “My income will continue to grow with the number of people I help. So yes, there’s unlimited income potential, but really I just love to change lives. My heart is in serving.”
“The sky is the limit! My income will continue to grow with the number of people I help. So yes, there’s unlimited income potential, but really I just love to change lives. My heart is in serving.”
See the possibilities Mike Michalowicz’s Profit First is a book and cash flow method for creating good business habits. Go Figure is writing the Profit First for Optometrists book. While it’s Optometry focused, it has been expressly written so that the principles within can easily be applied to all types of business.
Coming in 2024