David Richter

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.

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.

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

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.

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.

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...

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.

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.

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.

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.

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.