Send us a text

What if a few simple shifts in your business structure and financial habits could set you ahead of 99% of companies?

In this episode, Mike Jesowshek, a CPA and founder of Taxelm, shares practical strategies for small businesses to gain a competitive edge without requiring massive investments or risky tactics. He emphasizes the importance of establishing a proper entity structure as the foundation for growth, maintaining an accurate and cloud-based bookkeeping system, and utilizing financial data to make informed business decisions. Mike also highlights key tax deductions and offers resources to help business owners optimize their financial strategies effectively.

[00:00 - 04:50] Introduction: Setting the Stage

• Mike introduces the theme of outpacing 99% of businesses with simple, effective strategies.
• Success doesn’t require excessive risk or investment; it starts with foundational business practices.
• Transitioning to an S Corporation can lead to significant tax savings.
• A well-structured entity is essential for tax efficiency and long-term growth.

[04:51 - 10:00] Building a Solid Foundation for Growth and The Backbone of Business

• Mike shares the importance of creating a management company structure for multiple business entities.
• Clear and organized entity structures reduce risks and enhance scalability.
• Consistent bookkeeping helps identify inefficiencies and drives better financial decisions.

[10:01 - 19:26] Leveraging Financial Data and Resources

• It is vital to use accurate financial statements for tax planning and business strategy.
• Mike offers a free document outlining tax deductions to maximize savings.
• Proactive financial management unlocks opportunities for growth and profitability.

Direct Quotes:

“Your entity structure is the foundation of how your business operates and grows.” - Mike Jesowshek

“Bookkeeping isn’t just for taxes; it’s the backbone of understanding your business’s financial health.” - Mike Jesowshek

“A cloud-based system done correctly gives you actionable insights. Done poorly, it gives you nothing.” - Mike Jesowshek

“With the right foundation, you can grow into the 1% of business owners who succeed at scale.” - Mike Jesowshek

Check out this episode’s blog: The Ultimate Guide to Maximizing Business Deductions and Write-Offs

______

Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

Join TaxElm: https://taxelm.com/

-------

Podcast Website: https://www.TaxSavingsPodcast.com

Facebook Group: https://www.facebook.com/groups/taxsavings/

YouTube: www.TaxSavingsTV.com

Send us a text

What if the key to unlocking exponential growth in your 401k is simply reaching $100,000? Could this milestone be the turning point for your financial freedom?

In this episode, Mike Jesowshek dives into the concept of why your 401k experiences explosive growth after reaching a $100,000 threshold. He explains the mechanics of compounding interest, the rule of 72, and how starting early can significantly impact retirement savings. Mike also introduces the idea of self-funded retirement accounts, detailing how business owners can leverage them to invest in areas such as real estate or cryptocurrency. He underscores the importance of surpassing the $100,000 mark to unlock greater investment opportunities and financial flexibility, offering practical tips to achieve this milestone efficiently.

[00:00 - 06:15] The Power of Compound Growth

• Mike shares his personal financial journey and why $100,000 is a pivotal milestone for investors.
• He breaks down the "rule of 72" and how it applies to achieving financial goals.
• Early and consistent investing accelerates your financial trajectory.

[06:16 - 12:10] Why $100,000 is a Game-Changer

• Mike discusses how hitting $100,000 opens doors to investment opportunities beyond traditional options.
• Reaching this milestone creates leverage for greater diversification and growth.

[12:11 - 16:45] How to Get to $100,000 Faster

• Mike highlights the importance of automating investments and sticking to a long-term strategy.
• Focus on consistency and discipline to build momentum.

[16:46 - 19:24] Final Takeaways and Encouragement

• Mike recaps the importance of achieving $100,000 and how it sets the foundation for future wealth-building.
• Take the first steps today, no matter where you are in your financial journey.

Direct Quotes:

"Think of compounding interest like a snowball rolling down a hill—small at first, but it can grow into something massive over time." - Mike Jesowshek, CPA

"The rule of 72 gives you a simple formula: divide 72 by your interest rate, and you’ll know how long it takes for your money to double." - Mike Jesowshek, CPA

"Starting early with your retirement savings means you’re giving your money more time to work for you, doubling multiple times before retirement." - Mike Jesowshek, CPA

______

Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

Join TaxElm: https://taxelm.com/

-------

Podcast Website: https://www.TaxSavingsPodcast.com

Facebook Group: https://www.facebook.com/groups/taxsavings/

YouTube: www.TaxSavingsTV.com

Send us a text

Did you know you can maximize your HSA contributions even if you switch to a high-deductible health plan late in the year?

In this episode of the Small Business Tax Savings Podcast, Mike Jesowshek answers listener-submitted tax and business-related questions, covering topics such as HSA contributions, structuring multiple businesses, employing children, vehicle deductions, the Employee Retention Tax Credit (ERC), and year-end tax planning strategies. He emphasizes the importance of implementing tax-saving strategies tailored to individual circumstances and highlights tools like Tax Savings Podcast resources and Taxelm for deeper guidance.

Discover this and more tax-saving tips in today’s listener Q&A episode!

[00:00 - 02:53] HSA Contributions and the Last Month Rule

• Mike explains the IRS’s Last Month Rule, allowing full-year HSA contributions if enrolled by December 1st.

[02:53 - 05:42] Starting a Business and Learning Tax Strategies

• A Minnesota listener seeks guidance after forming a new business.
• What is the importance of implementation over mere learning of tax strategies?

[05:42 - 07:39] Employing Children and Managing Child Support

• Mike gives advice on structuring small business ownership to avoid affecting child support obligations.

[07:39 - 13:00] Structuring Multiple Businesses

• Discussion on using DBAs versus separate LLCs for businesses in different verticals.
• Consideration of liability and future sale opportunities.

[13:00 - 19:16] Core Tax Strategies and Vehicle Deductions

• Mike discusses core tax strategies such as home office, automobile, and travel deductions.
• He explains vehicle deductions, depreciation methods, and financing.

[19:16 - 27:30] Year-End Tax Planning Tips

• Mike clarifies on how to handle ERC credits in amended taxes.
• He encourages listeners to implement achievable strategies before the year ends.

Direct Quotes:

“The key piece is implementation. You can learn all you want all day long, but if you don't implement anything, you don't see the tax savings.” - Mike Jesowshek, CPA

“As long as you have that high-deductible health plan in place by December 1st, you're eligible to contribute the full amount to an HSA for the year.” - Mike Jesowshek, CPA

“Take off what you can bite off and do that. I’d much rather see you do one or two strategies than try to do ten and end up doing zero.” - Mike Jesowshek, CPA

Check out this episode’s blog post: https://www.taxsavingspodcast.com/blog/tax-questions-answered-vehicle-deductions-entity-structure-wotc-compliance-and-more

______

Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

Join TaxElm: https://taxelm.com/

-------

Podcast Website: https://www.TaxSavingsPodcast.com

Facebook Group: https://www.facebook.com/groups/taxsavings/

YouTube: www.TaxSavingsTV.com