Many entrepreneurs struggle with finances—and worse, don’t pay attention to their money because they’re only focused on earning revenue rather than managing their money and preparing for taxes.
Today I’m interviewing Bob Gauvreau, a Chartered Professional Accountant who has worked in public accounting for over 10 years and has practiced public accounting in his own firm since 2008. His company, Gauvreau Accounting Tax Law Advisory, works across North America providing accounting, bookkeeping, tax services, tax guidance, and financial strategy for business owners.
Bob’s mission is to empower entrepreneurs and small business owners with financial information, so they can be confident to make informed decisions and change the world. He created his “Profit Simple” approach to finances (which is different from “Profit First”)—in which there are 3 components of finances that we should be aware of. Our finances need to be 1) up-to-date, 2) accurate, and 3) we need to be able to interpret our financial data in a way that allows us to make really good, informed decisions.
In today’s episode Bob and I discuss:
- Why it’s important for business owners to have scheduled financial reviews every month, and what they can do to set themselves up for success
- Profit margins (i.e., revenue minus the cost of delivering that revenue), and why they’re so important
- Why we must stop being wasteful in our finances—and cut out any fixed expenses that we don’t need such as dues and subscriptions that we’re not using (to save the equivalent of one child’s annual tuition fees for post-secondary education)
- How a big cash injection (i.e., a quantum leap) in your business can impact your taxes
- Why tracking your profitability throughout the year and being prepared for your tax liability goes a long way
- How to know which business structure (C Corp, S Corp, or LLC) is right for you—and how you can pay your kids a salary and deduct that off your taxes (e.g., Bob pays his daughter to manage his TikTok account)
Plus, Bob shares his thoughts on Grant Cardone spending $50 million to buy a plane instead of giving tax money to the government—and why he thinks that will get Grant in trouble with the IRS, because that’s a non-deductible item.
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