Episode Transcript
[00:00:14] Speaker A: Welcome to Battle Ready. I'm Ricky Chavez, and on this show, I dig into what it really takes to lead with strength, clarity, and discipline when the pressure is real. Today I'm joined by Keisha Rondino, CPA founder of Keisha L. Rodino, CPA Founder, llc. She has spent years helping small and midsize businesses bring order to their finances, raise their standards, and build the kind of structure and support that's really helps growth. You know, conversation is not about counting. It's about leadership, discipline, and what happens when I finally face the truth of my business through numbers. Numbers are always kind of scary. I established the financial leadership is very important into, you know, gaining trust with your clients. Hey, Kesha. Welcome to the show.
[00:00:55] Speaker B: Hi, how are you? Thank you for having me.
[00:00:58] Speaker A: Yeah, amazing. Thanks. Thanks. So we've known each other for a while and, you know, I. And I appreciate you've helped me with my small business for a long time. So tell me what, what really got you into this in accounting and. And helping small businesses?
[00:01:12] Speaker B: Yes. So I originally did not start out with just helping small businesses previously. Before opening my firm, I worked for the Department of Defense, was an auditor for the Department of Defense, where I audited businesses that had contracts with other government entities.
So these subcontractors that may have contracts with government entities, they're audited periodically to make sure that they're stable, that they are following all the rules and regulations when it comes to being a subcontractor for the government.
So I encountered so many different type of businesses.
And as an auditor, you really have to dig very, very deep and to see what their operations look like, if they have contracts in place for what they should be, if they are doing what is required of them in order for doing the job that they are being paid for.
And something that I noticed is that a lot of these contractors, they received contracts and they were making a lot of money, but they didn't have systems in place. And that was able to really support the financial side of what they were doing. Now, they were very great at the work that they do, and they did provided a great service to the government. But when it came down to their books, to their accounting, to the administrative and financial side of their business, they were all over the place. And so I knew at that point there really was a need in order to help these businesses. And so at that point, my goal was to work with businesses, help them establish some type of financial clarity so they can not just make money, but they can keep more of it and actually build wealth. With it because it's one thing to make money, but if you're not building wealth with it and you're not keeping it, then it's really not working for you. So that's how I determine that's what I wanted to do. And those are the people that I wanted to help. So my journey has, you know, really kind of been very systematic when it comes to working with, with business owners.
[00:03:24] Speaker A: So you, you, you were working and you saw the need, right? You saw those people out there floundering, like, you know, like, you helped me because I, I know I'm all over the place when it comes to my personal business. It's. And definitely you've been working with me for a while. And I, you know, one thing is to help somebody, but they have to actually execute, right?
[00:03:42] Speaker B: Yes.
[00:03:45] Speaker A: So when I say financial discipline is leadership, what does that mean to you?
[00:03:49] Speaker B: So when I think of financial discipline and leadership, a lot of people think that it's different from each other or they don't go hand in hand, but just about building a team, it's really about building yourself as well, too, because the way that you manage your money, it sets the tone for everything that you do in your business and in your life. So understanding what you're spending your money on, understanding where your money is coming from, understanding your cash flow, all of that is basically from a leadership position.
And so when you have that type of level, level of control over your business, you know that you're going to be operating in a way that's going to be profitable for you. And so you want to have systems in place and you want to operate that business like you really know what you're doing. And so just having the discipline is more about being intentional about it. And so it's not just having money, it's really telling it where you want it to go. So it's understanding what's leading yourself, making sure that you're able to put those systems in place. But it's not just about you as a person. It's about you not doing everything for your business, but more about making sure everything in your business from a financial standpoint, is being taken care of.
[00:05:16] Speaker A: You know, it's funny because, you know, having. Having worked in corporate America for so long, then turning around and opening my own business, you don't know what you don't know. I mean, you know, I talked to a lot of my friends that are in the same business I'm in, and even some of the other business owners. I, you know, I'm like, hey, so we talk a little bit about taxes. Taxes is always, oh, my gosh, I'm having to do that again, right? And I'm like, who does your taxes? Oh, man, I do my own taxes. I'm like, really? Like, why? He's like, well, I don't want to invest in paying somebody to do what I can do on TurboTax. I'm like, you know what? I think you need to rethink that.
You need to go find somebody that specializes. How do you feel about that?
[00:06:03] Speaker B: So it's funny because I had this exact conversation a couple weeks ago with someone using TurboTax is absolutely great if you are very small. If you're a W2 employee, you don't have many.
You don't have investments, you don't have anything else going on that may be a good choice for you. But as soon as you start to run a business and you want to truly be able to save on taxes and do true tax planning, you need to be working with someone that can one, show you exactly where your money is coming from, show you where it went, but also know that it's being reported to the IRS correctly. A lot of times when you work with a system such as TurboTax, when you get outside of the just the basic W type of reporting, the questions that they ask you become a little bit more difficult. And the reason why I say difficult is because if you don't know what they're asking you, you don't know how to put in the correct information.
So it's one of those things where you hear garbage in, garbage out. So you may think that you. You are saving money by not utilizing someone that specializes in taxes that can absolutely help you. But the fact that I'm at it is you're truly losing money because they can help you look to see where there's additional deductions, how you can maximize what you're reporting in order to reduce what your taxable income is, which means you'll save more on taxes. So if you make that investment, that's what it is. It's an investment because the return that you get on it is so much greater. It's a benefit to you versus wasting money and leaving money on the table by trying to do it yourself.
[00:07:49] Speaker A: And it goes back to, you don't know what you don't know. Right. The rules constantly. Right. Aren't the rules always?
[00:07:55] Speaker B: Especially the tax laws. Especially the tax laws.
[00:07:59] Speaker A: And so, I mean, there would be something. There could be something out there that I've been overlooking for such a long time and I could be having to pay less taxes and keeping more. Is that right?
[00:08:15] Speaker B: That is absolutely correct. For example, when tax laws change, they change as of the current years.
And so what was previously put in place may or may not apply to where you are now. And so it's understanding those, those tax laws is understanding how they should be used. Because just because you're in now present trying to utilize a tax strategy or some type of deduction, if you're not utilizing it correctly for, let's say, when you had the expense or what the purpose of the expense is, you can absolutely do it incorrectly. So you do need to stay on top of it. And that's why working with someone that specializes in tax and understands the tax law can really guide you in the right direction.
[00:09:05] Speaker A: You know, my joke to everybody is today, now everybody has a degree in, in Google, but now it's even more. It's like Chat GPT is their world. Everything in Chat GT Chat GPT is perfect, right? They know all the answers. But I, I feel like dealing with the specialist. I mean that's where all the, all the good stuff happens. What's your thoughts?
[00:09:29] Speaker B: I agree with that. The amount of information that I've seen this past tax season because of Chat GPT is crazy, for lack of a better word, as everyone starts to research their own tax strategies. Again, if you're not utilizing it correctly or does not fit your situation, it does nothing for you. And so it kind of goes along with the social media. So I absolutely love social media and I tell everyone I think social media is absolutely great, but a lot of the information may not be 100% correct and it may not be that it's 100% correct. It may not pertain to your situation or it, you don't get the full picture of how to you utilize it. So you can hear one type of strategy or you can receive some type of information that you've seen on social media. And of course at that point you're going to Google it. I heard this is how I can save on taxes. This is how I can save money and put it in chat GPT. ChatGPT spits out something to them, but at the end of the day the information may be correct. But if it does not fit your situation or if you do not take it a step further in order to utilize it to where it does fit your situation or have the documentation that supports what your stance is on it, it is certainly not going to be a benefit for you. So when tax Time comes because you didn't discuss it with your CPA ahead of time, you were not proactive with it. When tax time comes, get disturbing news that, oh, this is not how this works.
This is your expectation is that this was going to benefit you this way, but truthfully, because of your situation, it benefits you another way or the lack of benefit is not fair. Had you done it this way, you would get full benefit from it. So those conversations happened quite a bit this tax season because of Chat gbt, because of Google. A lot of information is out there and taxpayers are not really sure how to use it for their benefits.
[00:11:51] Speaker A: You know, we're going to come back back to that and talk a little bit about not knowing what you don't know. So you can't ask Chat GPT the right things. We'll be right back after this.
Welcome back to Battle Ready. Stay connected to this show and every NOW Media tv Favorite live or on demand, anytime, any you like. Download the free Now Media TV app on Roku or iOS Unlock Stop the non stop bilingual program both in English and Spanish. If you're on the move, you can catch the podcast version of www.nowmedia tv. I'm back with Keisha Rodino and the conversation has been a little bit different than we thought. We're going to talk a little bit more, but about not just leadership, but entrepreneurship, how to meet with the right people so that you can get the best benefit of your hard work every day. He show. Welcome back.
[00:12:44] Speaker B: Thank you.
[00:12:45] Speaker A: So we were talking a little bit, you know, about Chat GPT and, and Google and things like that. One of the things, you know, I went to a chat GPT class not so long ago and, and the instructor basically said, hey, when you it's amazing tool, right? It's an amazing tool but you have to ask it and give it the most direction to get the best news. So going back to what we talked about earlier, you know, you had been auditing various entrepreneurs, various contractors and they weren't getting the best bang for their buck, most of us, because they didn't really know what to ask. Would you agree with that?
[00:13:19] Speaker B: I absolutely do agree with that.
They don't know what to ask. So in turn, they don't really know what their numbers are.
And so when you don't know what your numbers are as a business owner, you pretty much lack financial clarity within your business. So a lot of times they don't ask questions because they don't know what to ask. But also too because they are afraid. They are afraid that they one don't know and then they're afraid of what they may learn that they are not doing.
And so not knowing what to ask should be the last thing that any business owner is concerned with. Because until you ask, until you start to really take a look at your business operations, until you look at where you are financially, you are not going to grow. I do see so many business owners and entrepreneurs that make really good money, and as long as they are making money, they're fine. But you see when the money starts to slow down, that's where you see where your financial, I guess, structure, I guess financial systems are lacking. And so you need to ask questions. You need to continue to educate yourself, not just on the business that you are, the service that you provide.
It's understanding a little bit as well of what's going on within your business. Now, as a business owner, I, I, as a cpa, I know when I talk to business owners, I am on the last of their list of people to talk to. They pursue everything else and they do, and they look at every other aspect of their business before they look at accounting, before they look at bookkeeping, before they look at tax. So many times when business owners come to me, it's because they're now under a big heap of issues of tax filings and that they now need to get sorted out. And so even asking questions at that point becomes even bigger problem because you now have years and months worth of information that you're trying to figure out, but you just don't know where to start. So it just keeps increasing and increasing. So not asking questions is not a good thing. But ask anything because when you ask the first question, you will probably have more questions. But that's what leads you into understanding how you're operating financially.
[00:15:52] Speaker A: You know, the funny thing that when you say that, right.
You know, I always tell every, you know, I always say that, you know, everybody knows everything, right? They, they, everybody's been through an experience. There's other business owners that do certain things and, and have in different businesses and they assume, you know, they give you advice and they're going to tell you, hey, you should do this, I do this, I do this, do that. You know, and that's, you know, nobody, you know, some people try to follow that, but until they hit some difficult season, that's when their, you know, financial weakness is usually exposed, right? So what's the thing that's exposed first? You know, what is, what's the biggest challenge that the entrepreneurs and their financial health, you know, really Start getting scared about
[00:16:36] Speaker B: the lack of systems because there's different aspects of financial aspects, excuse me, to running your business. There is the bookkeeping aspect that focuses on your day to day operation. It focuses on what comes into your business and what goes out of your business. So basically the money that you are making and the money that you are spending. And beyond that, the second aspect is accounting. And so when you think about accounting, that's when you are on a periodic basis, normally on a monthly basis, taking a look at your numbers, looking at reports, that shows exactly what you did from a income standpoint, from an expense standpoint, looking at your cash management and focusing on what decisions need to be made to make sure that you're going to do better the next year, the next month, excuse me, or if you're obtaining the goals that you have set financially for your business. And so the third tier becomes tax planning. Because again, as you are making money, the more money you make, the more taxes that the IRS is going to ask of you. But truth is, as you start to make good money, you can utilize these strategies, tax strategies in particular, in order to reduce what your taxable income is and what you're paying to the irs. And so it's, if you don't have those three things in place when everything goes bad, it shows that you don't have those systems and it shows that you are just basically operating on a retroactive or day to day basis. You don't want to just operate on a day to day basis. You want to really be proactive. You want to be able to look at where you are so you can make smart decisions.
[00:18:25] Speaker A: So it's all like they're, they're basing everything on hope. They hope at the end it just all washes out.
[00:18:29] Speaker B: That's exactly what it is. I, I always say if you're not planning, you're just really praying that when tax time comes that you know all of your expenses. And I think that is one of the, I mean bookkeeping is one of the most important task for your business. Because if you are not doing that on a consistent basis and you're just waiting until tax time to do it, you're looking at transactions and trying to figure out what is, what is this transact transaction for? What did I spend this money on? Why did I spend this money? I know many times I can't remember what I did two weeks ago. So if I'm looking at expense or money that I paid for something four or five months ago, yeah, I'm probably not going to remember.
So it does. It just goes hand in hand. You always want to be consistent with that so you can see where you are. And I try to always emphasize that.
[00:19:28] Speaker A: So how can somebody get a hold of you and continue this conversation? Maybe ask you some questions and get on your calendar?
[00:19:35] Speaker B: Absolutely. So I do offer consultations with new business owners, business owners that actually have been in business for a while and they never took the time to set up their systems, but they have always made really good money. Absolutely. Through my website, KL rondino cpa.com there's a link there that you can schedule a consultation with us and we can hop on a call and we can talk about how you're operating and how you should be operating. That can really help you grow in scale. So because at the end of the day, you want to be able to scale. You can't do everything yourself, but if you don't have the systems in place to be able to scale, then you're always going to be the only person doing every single thing.
[00:20:24] Speaker A: You know, I think the I, I know you're like my 911 because I'm, I'm calling you and texting you and asking questions all the time because I am a financial mess for sure, you know, so it's like, man, you know, you tell me all the things, but I get all about execution, right? So even though you can put out a plan, you know, if they don't execute, then it gets pretty scary.
[00:20:50] Speaker B: That's a very good point. Thank you for bringing that up.
Because you can absolutely have a plan in place, someone can give you guidance, but if you do not utilize it, it's still not going to be helpful for you. So you bring up such a great point there. It is not waiting until the last minute to execute something that you know you should have executed a while ago.
So you bring up an extremely good point. If you talk to someone, let's say we have a conversation, and I suggest that, okay, you set up this type of accounting system. Once you do that, run your reports and reconcile at the end of the month. Okay. Once you're done with that, we're now going to determine, okay, which which of these systems do you really need or which marketing tools are more profitable for you? What are you most making your money from? What is most beneficial for you? You are able to really come up with all of those reasonings for why you're doing what you're doing in your business. So you bring up a really good point. Following directions and executing is important.
[00:22:00] Speaker A: So you, you know, in our conversations, and you know, I'm sorry, I'm like one of those bad execution guys here, but we talk about reconciling monthly, paying taxes quarterly and then, you know, finalizing at the end of the year, which, yeah, I'm not that good at. But.
So it not doing these things also is a cost to you, right?
[00:22:23] Speaker B: There is. There is absolutely a cost. So as a business owner, independent contractor business owner, you are required to pay estimated taxes to the irs. One, when you first get started, many times you may not know, but that is a rule that the IRS has. And if you don't pay quarterly taxes, there is a penalty that is imposed at the end of the year once you actually file your taxes that show that you, you did not pay them because the IRS feels like you make money throughout the year. And as long as you're making money, we want our piece of it as well.
So the example that you use with estimated tax payments, yes, there are penalties when you don't submit that to the irs, when you don't pay on time your overall tax liability, those are penalties and insurance that is generated because you didn't follow the IRS guidelines and rules. So. And a lot of times it's not because you do things purposely. It's because you really don't know. Because as a new business owner, you may not know of certain requirements of you.
Unfortunately, the IRS does not go on. I just didn't know, like, I didn't understand that process or I did not know you will absolutely have the penalties imposed on you. And so it is up to you at that point to either pay it, I'll try to get it mitigated, man.
[00:23:52] Speaker A: That's just another step. You know, we're going to talk a little bit more about that when we come right back. It's, you know, that money that you're not, that you're not saved is not good. Right. Be right back.
Welcome back. I'm here with Keisha Rodino, and one of the clearest takeaways from the conversation we've been having is being prepared and seeking assistance when you're starting a business and when you're getting ready to go into tax season, actually, even before tax season. Welcome back, Keisha.
[00:24:27] Speaker B: Thanks.
[00:24:29] Speaker A: So, you know, we talked about being a business owner and just, you know, you're in the day to day every time, you know, doing your work, you know, making money, everything's good. Paying your bills, running your life, doing all this.
But then the taxes come on, right? So then everybody's just Very unorganized, not having systems.
So what would you talk, what would you tell somebody that's like thinking about leaving corporate America, going to start their own business? What are some steps from a financial perspective that you would tell them to do?
[00:25:05] Speaker B: Yes. So when you originally start your business, I always say that you want to start it the way that you want to operate it. And, and so that is having one, having some type of system in place that is going to track your finances. It is having a business bank account. That's one of the first things that you want to do, get a business bank account. And you want to operate all of your transactions through there. Meaning when you start to make money, you want all of your income from that business to go to your business bank account. And any expenses that you have, you want, you want to pay from that business bank account from there. That's one of the easiest ways that you will be able to track what your finances are. And so as you get into setting up some type of system for bookkeeping, whether you determine having and having an actual electronic system is best, or initially using a spreadsheet where you are tracking everything by category on it, you are going to determine what's going to work best for you, what. But the goal is to be consistent with it. Whichever is most consistent is what you want to use, because without consistency, it's not going to do you any good. So business bank account having what your how you're going to track what comes into your business and what comes out of your business, you also want to think about who you want to work with for when you have questions about business overall, those estimated tax payments, what is that and how do you pay them and how much to pay them. Those are very normal questions that you're going to ask different types of income. How do I track this income? How do I classify it? What is it considered? To me, expenses when you're spending expenses, determining, okay, what is this category for?
Another big one is how do you pay yourself? That is one of the biggest questions that I get from new business owners. How am I supposed to pay myself? And the discussion that we have is it depends on how you structure your business. So depending on the industry that you are in, the type of business that you have and the amount of money that you expect to make within that business that year is going to determine what's the right entity structure and that you're going to establish your business as. But how you are paid is one of the most important things. And that's one of the first Things that you want to make sure you understand when you are setting up your business as a, as a new business owner. Because you're coming from, you're coming from a position where someone paid you, you worked for them and you got a paycheck. And within that paycheck they determine what your taxes were. They determine, okay, if you were retirement, anything associated with their W2 they did well. Now that is going to be on you to do and you want to understand how that is done for your type of business. So one of the first things, bank account bookkeeping system, how you're going to pay yourself.
[00:28:19] Speaker A: So let's talk about that real fast. So you know, I'm in the real estate business now and a lot of people are starting to, you know, buy houses, extra house investment houses, and, and sometimes they, I, I think they don't feel like they're a business owner and there, there's any reason for them to separate their business accounts. What are your recommendations for somebody? You know, I'm, I'm a person, I've been working. I want to buy me a little rental account and you know, you, I should I separate the money and put in another account and just deal nothing with that rental property in that account or. What are your thoughts?
[00:28:55] Speaker B: Absolutely. You never want to do what the IRS calls co mingle funds. And that means that you keep your business or rental property income and expenses are handled in the same account that your personal expenses are. That is a huge no no when it comes to the irs. And if there is a time that the IRS ever asks about any of the expenses that you may have pertaining to your business or your rental property, because I always say when you have a rental property that's a business, you are, that's a form of a business that you are running. If the IRS has any questions and you provide them with information from a bank account that shows that you have personal expenses that associated with it, they have the right to disallow every single expense that you have claimed the deduction on.
Because at this point they don't know whether it's business or if it is personal.
So you never want to commingle funds. Everything starts to get muddy. There is no clarity on what you're making in the business and what you're spending in the business. So that is a huge no, no, never commingle business or rental property funds with your personal accountants.
[00:30:14] Speaker A: Okay. So that's kind of a little scary, right? Especially if, if you're working hard and you have a lot of expenses that you Co mingle. Then all of a sudden you lose that out for that year. Right.
[00:30:25] Speaker B: You, it is possible that you can lose it for the year. But furthermore, when tax time comes and you are trying to determine what you spent your money on, you now have a list of transactions that you have to go through and, and again determine what was for business, what was for the rental property, or what was for you personally. And that goes back to. If you're not doing this periodically, then you're trying to remember things that took place months ago, meaning that you may not be accurate.
So if you're not accurate when it comes to reporting items to the IRS again, that opens you up for penalties for fees for the IRS to be you to be under their radar. And no one really wants that to take place. So yeah, that's not. So it's, that's not something that you want to do.
[00:31:20] Speaker A: So. So first step is separate, right?
[00:31:23] Speaker B: Correct.
[00:31:23] Speaker A: And then the second, second step, what I'm catching from you is, you know, meet with somebody and put a strategy in place because it's easier to start with a strategy and work with it than try to implement one like me at the last minute after the fact.
[00:31:40] Speaker B: Yes. When you are, things are so much easier when you are proactive because once the year ends or if you try to fix something after the fact, it is a lot harder than if you had started correctly the right way or done it the right way initially. So trying to clean up what was done previously is harder than, than being proactive and having a system in place or doing it best the first time or initially when it's done.
[00:32:12] Speaker A: The other piece is, you know, strategies are strategies. But as you implement your strategy, and I think what you have me do is the quarterly calls, which I'm sorry, I miss most of the time, but quarterly calls, you can review the strategy and then make adjustments based on what's happened before. What you see is that right?
[00:32:33] Speaker B: That is absolutely correct. That is why you should be talking with your CPA throughout the year because the one time conversations that you have just at tax time is focused on what was done previously. You really can't, unless you, unless you have a conversation about where you currently are now and what the expectation is for the year.
You don't know what changes to make? Well, one, you don't know where you are, but then you don't know what changes that you make. So yes, you bring up a good point when you, when you say that. Yes.
And having those monthly calls,
[00:33:14] Speaker A: you know, I totally get it. I feel like I'm throwing Hail Marys to you all the time.
[00:33:18] Speaker B: No, you aren't. And, and I know we've kind of talked about this on, you know, sidebar before, but sure, initially, yes, there were some challenges when it came to bookkeeping, but it has absolutely improve as we've been working together. I can honestly say that it has improved over time. And I think you can attest that you've really seen the difference when tax time comes, of where we were when we first started to work together, you know, years ago to where we are now, how smooth it is, how there have been may have been some additional tax savings that is associated with it. So all of that comes with the conversations. And when being something we don't talk about a lot is really being transparent as well, too, when you talk to your CPA, because if you're not giving them 100% of honesty or truth, then they can't really help you. They can only help you based on the information that you provide to them.
And just to go back a little bit, when you spoke about strategies, it's important to know that when you have these discussions, it's not just tax strategies that you want to talk about. It's business strategies as well, too. Operational strategies for where you want to be with your business financially. That is a big part of it. But let's just say, for instance, one of your goals is, to. Which I find with many clients is that one of their goals is to. They want to buy a home like their personal residence.
And as a business owner, the, your. The companies that provide you with loans and give you money look at certain things on your tax filings. So when we speak of strategy, there we don't just look at, okay, we want to save as much in taxes right now, and we don't. We want to write everything off. You want to look at, okay, what's going to be best for you. Because when it's time to purchase that home, you want to look like you're making some money as well. And so looking like you make some money is not going to be showing that you lost a ton of money. So it's being strategic when you have these conversations, it's being honest. It's expressing what your goals are. It's explaining to them where you currently are. And within those conversations, you can come up with great business strategies as well as great tax strategies as well, too. So it's not just about.
About saving on taxes, but it is about keeping more of what you make operating your business efficiently and, and hitting the goals that you want, whether it's purchasing a property, whether it's wanting to sell your business in a couple of years. So how do we set a structure up or how do we set a plan up in order to make that happen? So it's business and it's tax strategy as well too.
[00:36:16] Speaker A: Well, with that note, we'll come right back. We'll see you guys in a minute.
[00:36:23] Speaker B: Did I go over
[00:36:27] Speaker A: this?
[00:36:27] Speaker B: Okay,
[00:36:30] Speaker A: welcome back to Battle Ready. You can stay connected to this show and every Now Media TV's favorite Now or Live and on demand anytime you like. You can Download the free Now Media TV app on Roku or iOS and unlocks non stop bilingual programming in English and Spanish. If you're on the move, you can catch the podcast version on WW NOW Media tv. So now I'm back with Kesha on Dino. We've been talking a lot about businesses and starting a business. Welcome back, Keisha.
[00:36:56] Speaker B: Thanks.
[00:36:58] Speaker A: So we talked about strategies and implementing strategies and you know, starting a new business. Open a new bank account. So let's kind of re revisit a lot of so I'm working at a corporate job.
I think I'm tired of being a corporate person. I have some skill sets. I want to start my own business and I'm good at what I do.
We talked about talking to a CPA to get everything in place. So walk me through that.
[00:37:32] Speaker B: Yes. So when you initially determine you want to start that business, having a having a team in place or determining who's going to be part of your team is important and one of the people on that team should be a cpa, a financial person that is going to help you when it comes to your business finances, guiding you on your income, guiding on you on your expenses. Definitely someone you need to have on your team.
As you are speaking with them, they will explain to you. Business bank account is a non negotiable something you definitely need to put into place.
Determining how you want to operate from an entity standpoint is going to be important as well too. And a lot of that is going to depend on the type of business that you have, how, how many hours you're going to be working in it, which will also determine how much you plan on making in it. So the most easiest one that I see most people start off with is as a sole proprietor, meaning they are their business. They say that I want to start a business and they instantly start getting customers, start getting clients in order to do what it is that they love to do.
That is absolutely fine. But Regardless of what entity you decide to start with, whether it's that sub proprietor, whether it's an llc, whether it's a corporation, you want to understand your responsibilities when it comes to operating those businesses, because each is going to have a level of responsibility.
Because as a business, as an entity, the IRS does require certain things from you. So it's understanding that when you have these conversations, you want to understand how you are going to get paid. Because if you're leaving one job, you want to get paid from the one that you're going to be doing full time. So understand how that would work, understanding how you're going to track what comes into your business and what is going to go out of your business, that is going to be a big part of it because you want, like financial clarity out the door. You want to know what to expect, you want to be intentional about your dollars, and you want to put it to where it's working for you.
Another thing we did not talk about, but I do want to touch on a little bit, is the retirement side of it too. As a business owner, we all love what we do. I own my own firm, so I'm considered a business owner as well. At some point, as a business owner, you love what you do, but that would be a point that you are going to want to retire.
And when that time comes, you want to be able to sustain the lifestyle that you currently have or that you expect to live where retirement comes.
So thinking about how you're going to contribute to retirement as a business owner, there are several different ways that you can contribute to your retirement. It just depends on what's going to be best for you. So having a conversation with a CPA is going to guide you in that direction. They will be able to tell you, okay, based on how you're doing, how much you should be contributing, which plan you should be contributing to. So they can give you a lot of insight when it comes to planning for the future.
And then lastly, they can also talk to you about different strategies, tax strategies as well as business strategies. We talked about that previously as well too. So, you know, strategies that can help you minimize what your taxable income is. Bringing in family members in order, hiring your family members in order to help you run your business, what that looks like, things like renting out your home home to your business, putting those things in place, doing it the correct way is going to help you down the line with those strategies and any other strategies that may be out there. But if you don't know what you're doing and you don't have these conversations, you won't be able to utilize it to your best benefits.
[00:41:44] Speaker A: You know, you said that and you keyed on a couple things that really I think are amazing is, you know, you say if you don't know what you're doing, but not only if you don't know what you're doing, you don't know what to ask.
Right?
[00:41:56] Speaker B: Right.
[00:41:57] Speaker A: So it's like, it's important to find somebody that specializes in that. And you hit on another couple of points that I really want to highlight is, and I'm in the real estate market, so I see this all the time, right?
Entrepreneurs wanting to buy homes now that they're finally in that situation, but they took so many breaks that they don't have the income. I mean, they make it, make lots of money, but they write everything off. So those are some great strategies to, to get with you on. Now, how do I balance ambition with discipline needed to grow for growth? Responsibility with money.
[00:42:35] Speaker B: When we think of ambition, I guess when I think of ambition, I think about your goals. I think of what it is you want to accomplish in your business.
So it's determining where you want to be, the vision that you have for yourself, the vision of what you have for your business.
When I think of discipline, I think of doing exactly what it takes to get to what your goals are.
And that's for business all around. Not just from a financial standpoint, it's for overall operating your business, but from a particularly from a financial standpoint. The discipline part is not being afraid of your numbers. It's the discipline of always knowing your numbers. Because when you know your numbers that will help you make the best business decisions moving forward. You no longer would be operating or you're not operating from a place of right now or, or a place of being retroactive. You are operating from a place of these are my goals, this is what I want to accomplish, and this is what is going to take to be there. So this is what I need to do. So when I think about ambition, I think about discipline. That's what I, you know, overall think of and that's what CPAs do. CPAs can help you from that financial standpoint. And, and one thing I do want to say is that don't be afraid to make that investment, to invest in someone that is going to help you grow, because the investment that you make of working with a CPA and someone that can help you grow your business financially is going to come back to you. 2, 3, 4, 5, fold. So you don't look at it as an additional expense, look at it as an investment. Because as long as you're doing what you're doing that you, you're supposed to do and what they advise you of, you're going to get back, get that back twofold. So it is truly an investment versus an expense.
[00:44:43] Speaker A: It's all about being proactive, right?
[00:44:45] Speaker B: Absolutely.
[00:44:46] Speaker A: So how can somebody be proactive and reach out to you and continue this conversation?
[00:44:51] Speaker B: Go to my website, KL rondino cpa.com schedule a consultation. When we have these consultations, you will be speaking with me to where I can tell you, okay, this is where you are, this is where you need to be and this is what it's going to look like for us to work together for you to get there.
[00:45:14] Speaker A: Okay? So coming back to being proactive, reaching out to you, getting it, getting everything together. The one other thing you said earlier was when you get ready to start your business, it's always good to put your team together, right?
Everything. You know, the cpa, maybe a financial planner, maybe a career coach, all these things. But if I reach out to you and we start working together, I mean I'm going to say this pretty in layman terms. It's still tax deductible, right?
[00:45:44] Speaker B: It absolutely is, yes. Because that is going towards your business. Yes.
[00:45:50] Speaker A: So that's, that's something to think about anyway. Right. So yeah, yeah, I might be paying X amount of dollars, but it's also something that you can deduct on your taxes and why not?
Sometimes you got to do what you don't like to get what you want. Like you ever heard that?
[00:46:05] Speaker B: Yes.
[00:46:07] Speaker A: So what other steps for a business owner watching today, what is one step that they can take right now to become more battle ready financially,
[00:46:22] Speaker B: Analyze where they currently are and ask themselves are they happy with where they are?
Are they making money and it's not showing in their bank account?
Do they want to make more money just overall in their business?
Think about where you are financially and are you happy with it?
If you are not happy with it, know that you need to make a change and make that change. That's where the ambition and the discipline comes in at. Because once you discover there is a problem, if you do nothing about it, then leadership, what we talked about initially, leadership falls by the wayside and so you want to identify where you are.
If you are happy, then great, you have all your systems in place. That's amazing. But if you are not, know that you have to make a change. Make that change, put the systems in place that is going to allow you to get to where you want to be. That will make you happy.
[00:47:31] Speaker A: So all of this about getting, being proactive, putting a plan, put a process, a strategy and execute.
[00:47:40] Speaker B: You say the perfect.
[00:47:40] Speaker A: You won't be all sad then you won't be all sad at the end because you're trying to retire and you gotta don't have a plan for retirement. That's one thing we'll talk about next time we talk. You know, what I've taken away from this conversation is simple. It's not just leadership and discipline, but it's about putting a team together. Make sure you have the right players on the team and make sure that they help you plan for your success.
Hindsight's 20 20, you have to and you can't see in the future. So somebody like yourself as a CPA can be a great player on the team to help you become battle ready. Kesha, thanks so much for having me today. I appreciate all our conversation. And again, if anybody needs to get a hold of Kesha, make sure you reach out to her and get on her website. Thanks a lot.
[00:48:22] Speaker B: Thank you so much, Ricky. I enjoyed my time here.
[00:48:32] Speaker A: Right on the dot.
