A lot of times, we’re so focused on the revenue that we forget about the bottom line and before you know it, it’s like you bring in all this revenue, but so much of the expenses are going right out the door because you didn’t have a proper plan in place” – Dr. Ranelli A. Williams
Welcome to the Marketing To Millions Podcast, I’m your host, Liz Boer! Today I’m speaking with Dr. Ranelli A. Williams, a CPA, all about setting your business up for success aka for profit, money mistakes that business owners make, and tips for maximizing tax savings.
Dr. Ranelli A. Williams, CPA is passionate about service and helping individuals create breakthroughs in their lives and business. She is a Certified Public Accountant (CPA), Certified Profit First Professional, best-selling author, and award-nominated speaker, empowering career professionals and professional service providers to take control of their money as they work towards building a strong financial legacy.
[00:01 – 07:51] Introducing Dr. Ranelli Williams
- Dr. Ranelli’s journey as a CPA
- What led her to help online entrepreneurs
- Having the entrepreneurial bug for the longest time due to the influence of her father
- After being laid off from her job back in 2014, Dr. Ranelli took this a sign to jump into her business full time
[07:52 – 19:22] First Steps When Starting a Business
- Creating an LLC (Legal Liability Company)
- Your personal assets are protected, meaning if there are collections against the business, it will not affect your personal assets
- Should people working 9-5’s create an LLC for their side hustle?
- Yes. The cost for setting up your business as an LLC is worth the protection you’ll be getting
- Don’t commingle business and personal finances
- Get your business bank account
- Everything has to go to the LLC first
- When should people switch out of an LLC?
- This decision is driven by your income. This will depend on what your top-line revenue is, versus what your expenses are, and your bottom line. As well as other factors
- Transferring to an S corp election helps you to legally avoid Social Security and Medicare taxes
Profit First Strategies + Tax Planning Basics For Online Businesses
[19:23 – 27:41] Strategies for Maximizing Tax Savings
- The home office tax deduction
- Educational expenses can be considered business expense deductions
- If you have children who are already helping you in the business, create a role for them. This can be deducted as well
[27:42 – 36:05] Setting Up Your Business Using The Profit First Method
- What is Profit First?
- A cash management system, that helps the business owner to prioritize profits in their business using a plan of allocated percentages of upfront revenue
- Four main accounts
- Profit account
- Tax account
- Owners pay account
- Operating expense account
- It is recommended to create separate physical accounts
- Ensuring your operating expense account can support hiring a team
[36:06 – 38:58] Closing Segment
- Connect with Dr. Ranelli (links below)
- Join The Profitable Entrepreneurs Network and join Dr. Ranelli’s master class where she teaches clients to think like a CEO and make the right decisions in their businesses
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Links and Resources Mentioned In This Episode
Connect with Dr. Ranelli
Visit her website www.erjservices.com or send her an email info@erjservices.com
FB group Profitable Entrepreneurs Network: https://www.facebook.com/groups/moreprofits
IG: https://www.instagram.com/drranelliwilliams/
Other Episodes Related To This Topic You’ll Enjoy:
- The Pre-Launch Campaign To Boost Your Sales
- My Top Tips and Secrets For Writing An Effective Sales Page
- 5 Video Tips For Introverts
Let’s get connected:
You can find me on Instagram and Facebook. Visit my website https://lizboer.com
Join the Marketing to Millions FB Group
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