David Richter
speaker
79 appearances
1 recordings
1 series
first heard Jan 2025
last heard Jan 2025
David Richter’s voice in public audio — every appearance, attributed to the second.
Trend
recordings per month · last 12 monthsNo recordings in the last 12 months.Older appearances are listed below; set an alert to hear about the next one.
Appearances
It's literally just a holding bucket for all the rehab money for all your rehabs going on to see, do I have enough to finish all of them or do I need to tap into and like go dive into my system to see how much do I have left for each project? But it's more of just a holding bucket there to make sure, you know, this is what I have in OPM to finish my projects.
The rest of the system is to make sure the business is healthy. And if you're like, good God, David, that was like five or six bank accounts that you just said. Like, what do I do? Like, I can't do all this. You know, I'm barely struggling to stay afloat. I would do one. I would pick either profit or owner's comp. Pick one of those to start with.
Start to keep more of the money because that's honestly, if there was a magic secret sauce, that's it. And it's not even though it's magic secret sauce, it's doing that for a long time over a long period of time. And it's like it's not sexy or exciting once you have it there for four years. But you know what's sexy and exciting?
Taking money out and doing something sexy and exciting, you know, like going out on that cruise or going to wherever you wanted to travel to or whatever you wanted to do. That's where I would start with that. And if you're if you are like, good God, my hair is on fire. I can't even do this. I would start with one percent.
Start with 1% to one of those accounts, like one of those keep accounts, profit, owner's cap, and put the rest of it into OpEx and run the business. But every quarter, can we do a little bit better instead of 1%? How about 2? Can you go to 2? From 2 to 3, 3 to 5, 5 to 10.
We just want to build the... If you were going to the gym, you're not going to go from lifting no weights to double your weight and bench press. You're not going to do something crazy. You're going to start with where you are, and that's where... a good system like this is almost like a personal trainer, like coming in and saying, this is what you need to do in the system.
And like, that's where just starting it, starting it is the habit. So there you go, Justin, there's like the overview of profit first. I know we take a long time, but then also the nitty gritty of like, here's the actual bank accounts to get set up.
Yep, exactly. So, yeah, even though I'm not personally a CPA or tax expert, so I just there's that disclaimer. And this is not financial advice. And this is not financial advice for you. So but this is where a lot of people have that mentality of like, OK, I'm just going to put everything on the business card or I'm just going to run everything through the business.
And while there's a certain degree of like, yes, you should run as much as you can. It's also at the same time, like you want the LLC to protect you like an LLC is supposed to protect you or like a corporation is supposed to protect you, where if you are just like commingling everything, that's like a separate issue, even maybe from what we're talking about.
It's like, don't commingle everything because then you pierce the corporate veil of yourself. Like that very famous, infamous statement, you know, in American, you know, our society here, it's like, I don't want you doing that. Another thing is,
That's why I like the Profit First system because usually we do percentage-based transfers, meaning if you get $100,000 in, there's going to be a percentage that goes to profit, to owner's comp, to the owner's tax, and to the OPEX account. In the system, think of it like that.
If you have $100,000 and let's just say you had legitimate business expenses of $50,000, then you're only going to be taxed on the $50,000 that's left over. That's actual profit to the business. But then you're actually taking the cash and putting it in the owner's tax account at 15% or whatever. And now you've got cash there sitting for the income that you'll be taxed on.
and if you think you're going to get around it it usually will catch up to you i just don't want it to catch up to you in the worst way possible like someone doing an audit on you and then you've got to go back and pay penalties over the last few years or whatever it might be like you want to be ahead of this stuff versus behind like this is a horrible thing to catch up on for multiple reasons one if you're playing catch up and clean up that's usually way more expensive
from bookkeepers, CPAs, accountants, like to get things caught up and all, you know, where it is. But another thing is too, is like, if you're playing clean up, catch up, like if you haven't paid the actual taxes you're supposed to, they could come after you again for that, you know, down the road with the fees and everything.
So that's why it's super important to be like, even though you might feel like, yes, I've got my LLC, it's all set up. I'm running everything through it.
Also, if you don't have a CPA who knows what they're doing, you could be in major trouble if you are just putting that all through from not just an orange jumpsuit perspective, but like, I'm going to have to pay again through the nose, maybe even what I already paid, and then that'll be all the fees and stuff. That's why, Justin...
I don't expect them to become a financial guru or wizard, but I do expect them to. Number one, I want them to know and be able to, and be empowered to be good stewards of their money and be good money managers of like a dollar comes in and they feel like I know what to do with it. And I at least now know where it went, even if it's not stacked up, I know where it went.
And like, I can at least pinpoint it and now make different decisions because The other thing is, too, I want them to know there are people out here like me, like even if you don't use simple CFO and myself, there's other people that have this mentality, this mindset.
They're not just your typical what you think of maybe an elderly CPA sitting like Ebenezer Scrooge sitting at his counting house, like in a dark corner, like just being there and not actually caring about you. you know, and the entrepreneur and then giving you good steps to follow of like, here's what to actually do.
So yes, the owner's tax account, like I mentioned before, is like a peace of mind account. It is there to make sure you have the money to pay the taxes, which you will. Because even if you don't pay them today because you're doing some squirrely things behind the scenes, it will catch up to you when you get the right people in place that are ultimately there to protect you and help you.
Showing 41–60 of 79 · page 3 of 4
← Previous
Next →