GOALS—Second Quarter 2021

A PU BL I C ATI ON OF

Anita Jacobus:

The queen bee of Queen Bee Realty makes her business personal

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Go Figure Accounting

SECO ND QUARTER 2 02 1

This is business on the

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Realty Gets Real

For Anita Jacobus of Queen Bee Realty Group, real estate isn’t just big business—it’s personal.

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6 Points of Interest

Business goes omnichannel; the importance of foster child mentors; two area businesses that outshone their industries; FYI on ETF; and more.

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16 Taken into Account Profit Points What does your small business have in common with a tube of toothpaste?

Growing Plans Business experts give tips on growing.

CPA Q&A Rachel answers your accounting questions.

24 Company Spotlight Meet Beth the Bookkeeper What’s Your Why? Exploring why entrepreneurs choose to start small businesses.

24 For What it’s Worth

We asked our clients and colleagues how COVID-19 reinvented their business. gofigureaccounting.net / 3

KEEPING TRUST

SECOND QUARTER 2021 VOLUME 1 NUMBER 3 A P U B L I C AT I O N O F

Rachel Siegel, CPA Owner, Small Business Development Expert Cindy Lovan, EA Accounting, Tax Kirstin Pastorick Bookkeeping Beth Kisner Bookkeeping Marissa Siegel Admin Assistant

Strong families.

Strong communities.

Every child deserves a safe, stable and loving home.

Together, we can make that happen.

Become a foster parent.

Start your life-changing journey.

To get your questions answered about becoming a foster parent, call 866-90-CHILD or visit www.embracefamilies.org/next-steps.

Northeast office: 732-374-9641 Southeast office: 407-855-6648 Go Figureaccounting.net

PRODUCED BY

Jamie Ezra Mark Publisher Heather Lee Editor __________ Rheya Tanner Art Director Josh Clark Designer Wendy Mak Designer Caleb Jensen Web Garrett Reardon Digital

407-573-6061 hello@emagency.com emagency.com @EMagencyinc Goals is published quarterly by Go Figure Accounting.

Volume 1 Number 3 Copyright© 2021 Go Figure Accounting.

All rights reserved. Reproduction in whole or in part without written permission is prohibited. Opinions expressed in the articles are those of the authors and do not necessarily represent the opinions of Go Figure Accounting.

R A C H E L’ S D E S K

How do you define growth?

This is a question we recently asked a local networking group —and one I always ask when onboarding new clients. And it amazes me to hear the diverse range of answers.

Many tend to associate growth with more revenue, higher profits, and bigger business value. And while, “I want to double my revenue this year,” is a common—and acceptable—response, more often, we hear our clients say that growth is about more than money. They want to grow as individuals; they want to improve their workplace for their employees; they want to be successful enough to enjoy their lives with their families.

Take Anita Jacobus for example—a highly successful realtor with a multi-million dollar portfolio of business. But when COVID-19 turned her business and health upside-down, growth took on new meaning.

It required taking a deep dive into expenses, streamlining back office procedures, investing in new technology, and creating investments that would support the team during such downturns in the future.

Growth meant taking a step back to launch forward.

For Jeff’s Bagel Run, growth is taking his online, pop-up bagel business to Main Street. He’s using Kickstarter to fund a brick-andmortar campaign. But he also knows that 20% of small businesses fail in their first year, 55% in the third. So while Jeff is ready to go gangbusters, we’re charting a steady path of growth that includes significant tax planning.

This issue is filled with more growth stories that we hope resonate with you and inspire you to revisit your definition of growth. It’s the perfect time, actually—not only because there is a refreshing wave of optimism in the air as more people get vaccinated and businesses begin to rebound, but because it’s the second quarter. Between now and Q3, businesses take a fresh look at where they are financially and decide how or why to pivot. There’s always an opportunity to make a change that can spell g-r-o-w-t-h for the rest of the year.

I’d love to know: what does growth mean to you? Email me or tell us about it on Instagram or Facebook.

While “I want to double my revenue this year” is an acceptable goal, more often, we hear our clients say that growth is about more than money.

Go forth!

Rachel Siegel, CPA rachel@gofigureaccounting.net

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POINTS OF

Business Genius: Omnichannel According to McKinsey, the pandemic has cemented “omnichannel” interactions as the predominant path for B2B sales. Even as in-person engagement reemerged as an option, buyers made clear they prefer a cross-channel mix, choosing in-person, remote, and digital self-serve interactions in equal measure.

As purchasing goes omnichannel, sales models will go hybrid.

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Hybrid sales reps will soon become the most common sales role. With omnichannel established as the new buying norm, 64 percent of B2Bs intend to increase the number of hybrid sellers over the next six months, making this model— representatives who interact with customers via video, phone, apps, and occasional in-person visits— the lead sales role.

Hybrid sellers are representa-

tives who interact with customers via video, phone, apps, and occasional in-person visits.

• 8% of B2B organizations have hybrid sales roles today • 77% of those introduced hybrid sales roles during 2020s pandemic • 85% expect hybrid sellers will be the most common sales role in their organization over the next 3 years

Embracing Community Mentors change the world one child at a time.

We’re aunts, uncles, and parents. Brothers, sisters, cousins, and friends. We are also volunteers with a passion for helping children in our community thrive. But meeting Esma Dennis through the West Orange Chamber of Commerce changed our perspective on what that looks like.

As a Foster Parent Recruiter for Embrace Families, Esma is fierce and friendly Fairy Godmother for children, teens, and young adults in need.

Though she is quick to share that Central Florida certainly needs more foster and foster-to-adopt families, these kids also need mentors. That’s where we can help!

Mentors come from all walks of life, and have a unique role that allows them to be a trusted friend, voice of encouragement and listening ear. Mentors spend quality time with their mentees, introducing them to activities that expand their horizons; often teaching life skills that are typically passed on by one’s mother or father; and listening to their stories with a compassionate heart.

“Mentors have a chance to make a real difference in the lives of others and at Embrace Families, we rely on mentors to help local youth in the child welfare system,” Esma shares. If your New Year’s Resolution is to give back, consider becoming a mentor.

To learn more, visit embracefamilies.org/mentor or reach out to Esma directly at esma.dennis@embracefamilies.org.

FA C T S & FIGURES

4 days

The amount of time it takes to launch a business in the United States.

SOURCE: WorldBank

59.9 MILLION

the number of Americans currently employed by small businesses.

SOURCE: nav.com

99 Percent

The number of United States businesses that are small businesses SOURCE: Guidant Financial

2-3% The amount a typical healthy small business can expect to grow each year.

SOURCE: nav.com

FEEL GOOD NEWS

EAGLE EYE

Once nearly extinct, American bald eagle populations have quadrupled in last decade.

In 1963, there were just 417 known bald eagle nesting pairs in the lower 48 states.

But according to a new report from the U.S. Fish and Wildlife Service, the United States’ beloved national symbol is now thriving, with more than 71,4000 nesting pairs.

Scientists say there are now an estimated 316,700 individual bald eagles in the contiguous United States — a rapid increase in recent years. For comparison, the population was estimated to be 72,434 individuals, including 30,548 breeding pairs, in 2009.

“The barriers to entry have probably never been lower. It is literally over a thousand times cheaper to start up a business today as compared to 15 years ago. …And it’s a strong funding environment, which we think we’ll see at least through 2022, if not longer. This bodes really well for startups.”

Sweet Success In case you needed another reason to get your COVID-19 vaccination, Krispy Kreme is sweetening the deal — it's giving one free doughnut per day all year long to anyone with proof of vaccination. All you need to show is your vaccination card to redeem your doughnut — a vaccine sticker is not valid.

—Stephen Markwell, JP Morgan

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POINTS OF INTEREST

The company also chooses quality over customization to reduce flower waste. “Customers can choose the size or the price point—we choose what to fill those bouquets with based on what looks best and is freshest from the growers we work with,” she says. “I also know it feels great at the end of the day not to be trashing loads of flowers and greens that have gone bad and can’t ship to customers.”

Last year alone, the company saved over a ton of plastic from going into the landfill.

JEFF’S BAGEL RUN

Inspiring stories of real go-getters filling a need in their community.

FARMGIRL FLOWERS

Farmgirl Flowers is our kind of success story.

Founder Christina Stembel never enrolled in college but worked for eight years at Stanford, first as general manager of catering and then for a few years at the law school. She originally thought flowers were a “waste of money,” but because her work required it, she began digging deeper into the industry. In 2010, working out of her San Francisco apartment, she parlayed her $49,000 in savings into a $32 million business, disrupting the floral delivery industry along the way.

Farmgirl works to reduce the wasteful practices that are prevalent in the floral industry. by skipping cellophane wrap altogether, opting instead for burlap or paper. “The model for Farmgirl allows for, at most, two percent waste,” says Stembel. “In the nine years we’ve been open it’s never gone above this and, in most cases, is below 1 percent.”

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PHOTOS (FROM TOP) COURTESY OF FARMGIRL FLOWERS, JEFF’S BAGEL RUN

Going for the goal

How far will you go for a good bagel? If you’re Jeff and Danielle Perera, the hunt for a decent New York–style bagel in Florida might be schmeared with disappointment—so much disappointment, in fact, that the Danielle realized that her husband alone could probably do so much better.

Thir frustration ignited a business, and Jeff’s hobby turned into sharing joy with the Winter Garden community in the form of hand-rolled, always boiled, fresh daily, delicious bagels.

Turns out, they weren’t the only ones hungry for more, and the newly formed Jeff’s Bagel Run frequently sold out in minutes. They started doing popups and added four more refrigerators to their house to keep up with demand.

Now the pair is on the rise to fund their first brickand-mortar location via Kickstarter. Whether you have a love for bootstrapping entrepreneurs or you simply want a better bagel, you can find all the details at jeffsbagelrun.com

Trend Report What exactly are ETFs? ETFs, or exchange-traded funds, are investment products that give you a way to buy and sell a basket of assets without having to buy all the components individually.

The cooler part is they trade on an ~exchange~ like any stock, making them easy to buy and sell.

• The first ETF launched in the US in 1993 under the ticker "SPY." It tracks the S&P 500.

• Most ETFs are like SPY—they track indexes. But there are many other kinds of ETFs, including sector ETFs, bond ETFs, commodity ETFs, and even inverse ETFs, which seek to cash in on an industry's decline.

ETFs are attractive because they're easy to access and allow you to invest in many different assets at once, plus they're often more tax-efficient than mutual

Acronym know-how

funds. And in recent years, ETFs have been one of the most disruptive forces in investing. They topped $5 trillion in assets under management last November, and Bank of America projects the market will hit $50 trillion by 2030.

Not to be confused with NFTs.

trade them, but a Gastly is not the same as a holographic Charizard.

But a bitcoin is indistinguishable from another bitcoin.

Why would I want to own an NFT? Can I make money on it?

One reason to buy an NFT is for its emotional value, which What is an NFT? isn’t so different from physical Non-Fungible Tokens are unique, objects...unless you’re a total utileasily verifiable digital assets itarian. No one buys lip gloss bethat can represent items such as cause they need it. They buy it for GIFs, images, videos, music althe way it makes them feel. The bums, and more. Anything that same can be true for a GIF, image, exists online can be purchased as video, or other digital asset. an NFT, theoretically.

The other reason is because you think it’s valuable...and will only Is it a cryptocurrency? increase in value. And yes, you can Yes, and no. An NFT is “a type of make money off of an NFT by buying cryptographic token,” but are difand reselling it for more. The process ferent from cryptocurrencies bevaries based on what platform you cause they’re not interchangeable. use. And there are a lot of platforms, Think of Pokémon cards: You can such as Top Shot and OpenSea.

“A global economic recovery is in sight.”

The Organization for Economic Cooperation and Development (OECD), a group of wealthy countries, raised its global economic forecast thanks to momentum with vaccine rollouts and the new round of U.S. government stimulus.

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Anita Jacobus is the reigning queen of Queen Bee Realty Group. Here’s how she kept her kingdom healthy through COVID.

Every day, area codes from around the world light up Anita Jacobus’ cell phone, delivering a one-woman orchestra of chirps, dings, rings, and beeps. On the end of the line are buyers, sellers, and investors in search of their next property in what may just be the hottest real es-

tate market in a decade—on the heels of a worldwide pandemic, no less.

Indeed, the housing market is the spectacular success story of COVID-19. Buoyed by low interest rates, work-from-home mandates, the desire for safety, limited inventory and increas-

ing home values, the housing market is on a tear.

The National Association of Realtors (NAR) released a report in late September finding that existing home sales had hit a 14-year high in August. Separately, Bloomberg reported that if homes continued to sell at

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that rate, the US would run out of new homes inventory in just over three months—the shortest such time frame in records dating all the way back to 1963.

In September, that inventory hit a new record low of just 2.7 months supply, and in October, it sank to just 2.5 months.

All this makes Anita Jacobus an insanely busy woman. “Low inventory means stiff competition, multiple offer scenarios, escalation clauses, contingencies, and more. Today’s buyers and sellers need a trusted, experienced team that can guide them through the insanity of this kind of competitive market.

The highly-lauded, high-producing owner of Queen Bee Realty Team in Toms River, NJ is clearly high-demand. She’s a Five Star Real Estate Agent—a prestigious award that less than one percent of agents nationwide earn—and to wit she’s been nominated every year since 2014.

Her drive, determination, and untenable 18-hour work day have delivered unparalleled success year over year.

Her phone rings incessantly because she’s just that good.

And still, this Wonder Woman nearly met her match thanks to an unlikely kryptonite of coronavirus and finance.

When did you first get started in Real Estate?

In 1999, I was a young mom looking for a career that had flexible hours and a high earning potential. Turns out, I was only half right. Flexible hours is probably one of the biggest misconceptions about the industry, but I didn’t know that then. Anyway, that first year 12 / goals / second quarter 2021

was incredibly challenging. It took me six months to sell my first home, and nearly the same amount of time for the second.

Last year, on the other hand, our team closed 110 properties for more than $40 million in sales. Sixteen hundred homes in the last 20 years. We sure have come a long way!

Though her recovery was slower than desired, the experience ignited a newfound passion for health and wellness in the couple. Ken, an avid Tough Mudder competitor, bikes, runs, or lifts weights daily while Anita has layered in daily meditation, hydration, and step goals into her long days. They both remain incredibly grateful What’s the biggest misconcepto the caregivers for making tion about your industry?

Anita’s recovery possible and Most people don’t realize how credit their tight-knit, 12-memcomplex the real estate process ber team at Queen Bee for keepis; there are so many steps and ing the business moving during factors involved in any single such a tumultuous time. transaction. It’s so much more “Our team… They’re just fanthan just putting a house in tastic. It’s so rewarding to work MLS or for sale by owner. with them every day,” she says.

In an industry rife with egoWhat’s been the biggest chalmaniacs, fashioning a cohelenge in growing your business? sive, service-driven team has Without a doubt, adapting to been a dream of Anita’s since COVID-19. The housing collapse 2015. in 2008 was certainly rough, but nothing like the pandemic.

Why a team? What inspired Our entire business was turned that shift? upside down in March when Like most people getting into New Jersey, and the country, the real estate, I worked as an shut down. Overnight, we need- individual agent for the first half ed to learn a whole new way of of my career. But after 16 or so showing, staging, selling, and years, I really wanted something marketing properties. Thankful- that was bigger than myself. I ly, our team is very tech driven, wanted to create a legacy. Keller and we were able to switch gears Williams offered me a great opand adapt within weeks. portunity to build a team, so in 2016 I made the switch and haHIVE-MINDED ven’t looked back. It’s so much For Ken Jacobus, Anita’s husmore rewarding when you are band and business partner, surrounded by passionate peothe impact was much more ple who want to work hard and personal. In March 2020 Anita do great things. Seeing everybecame one of New Jersey’s one growing and becoming the first official diagnosed cases best version of themselves has of coronavirus, nearly taking been so much fun. Yes, I’m very her life in the process. “There driven and I very work hard, were days I honestly thought but my team and my clients are she wasn’t going to make it,” really the secret to my success. It he shares. gives me so much joy.”

DOLLARS AND SENSE

Perspective is usually gained in hindsight, from distance and time to process and make meaning from what transpired.

Over 92% of small businesses reported having to “reinvent themselves” to survive the COVID-19 crisis, and that’s certainly true for Anita and Ken. The mandatory closures in New Jersey and New York forced them to reinvent the way their clients would buy and sell real estate. Virtual showings, virtual staging, virtual meetings, and virtual signings are all part of a new normal.

“We reinvented most of how we operated, using technology to become more nimble while working remotely. In a way, it made us more efficient in our processes, and it forced us

“Yes, I’m very driven and work very hard, but my team and my clients are really the secret to my success. It gives me so much joy.”

—Anita Jacobus, Queen Bee Realty Group

to take a deeper look at other areas of our business.”

Turns out, the real eye-opener wasn’t virtual reality. It was the company’s finances.

“Without a doubt, if it wasn’t for Rachel and the Go Figure team, we wouldn’t have survived,” says Anita.

A match made in heaven— and on Google. A little over two years ago, frustrated with QuickBooks, Anita searched ‘Top QuickBooks Accountants’ in New Jersey and Go Figure popped up.

“At first, they just wanted help navigating QuickBooks,” remembers Rachel Siegel, gofigureaccounting.net / 13

owner of Go Figure. “We put together some training, but their business is so unpredictable. From one week to the next, the schedule is never the same and they weren’t making any headway. I knew we could be doing so much more to help them grow, so I suggested we take over the bookkeeping all together. I pretty sure I can still hear their sigh of relief.”

The partnership has been fruitful, to say the least. Rachel and the Go Figure team have managed to not only reconcile and streamline their bookkeeping, but also change their company structure, connect them with a financial planner, develop new revenue streams and business opportunities, and invest significantly in their retirement portfolio.

“[Rachel] did things our old accountant would never have done.

She really came through for us in a big way. Now, when Rachel suggests we do something, we don’t even think twice. Go Figure is just an integral part of our team.

We trust them completely.”

What was your biggest financial challenge Go Figure helped you navigate?

—Ken Jacobus, At first, we thought we just Queen Bee Realty Group needed help with QuickBooks.

But almost immediately, Rachel suggested we switch from an LLC to an S Corp, and wow!

What a difference! That alone saved us so much money in our first year working together.

And, of course, we could not have survived 2020 without her their banker, share reports in help with PPP and other loans. real time, and help get them the PPP loan they needed.”

“COVID-19 really rocked their “They did things our old world,” says Rachel. “Not only accountant would never have was the business was totally done,” adds Ken. “She realshut down for three months, but ly came through for us in a Anita was so incredibly sick… big way. Now, when Rachel they didn’t even have to ask. We suggests we do something, just jumped right in. Because we we don’t even think twice. Go already had QBO in place and Figure is just an integral part their financial records were up of our team. We trust them to date, we were able to get with completely.”

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Now that COVID-19 is beginning to enter the rearview, how is Go Figure working with you to set you up for success in 2021 and beyond?

We talk regularly. Rachel guides us on the tax codes we should be paying attention to, and helps us make any necessary pivots. But I would say that this year, we are focused on updating our SoP manual, and maximizing our earning potential on some private investments. Thanks to Rachel’s insight and attention to detail, we have been able to become involved in some new rental property opportunities which is a new area of growth we hope to pursue.

“I’m always proud of the work we do at Go Figure, but this is definitely a success story,” Rachel says. “We were able to achieve some fantastic milestones in tax planning by restructuring their business. And while those percentages are impressive to me, what’s really important is that their business is secure in a way it’s never been before. That stability is what is allowing them to invest in retirement and grow new areas of their business.”

“But I’m a realist,” Rachel continues. “Real estate is a feast or famine business, and right now, it’s feast. Which is great.

But that can change tomorrow, and I want them to be well-positioned to navigate those down turns. COVID-19 was a wakeup call for all businesses, including Anita and Ken’s.

Rachel would like to see Queen Bee transition to Profit First by 2022. “That program

will allow them to plan for downturn in a way traditional saving plans don’t,” she says.

“It’s perfect for realtors and real estate professionals.

How did your budget or financial strategies change for 2021?

We have become addicted to saving. When things shut down, we looked where every penny was being spent, and honestly, it was a shock. When you really dig in and get into the meat and potatoes of your expenses, you are going to find surprises. We called every single vendor over the last year—more than 40 compa-

nies—asking for ways to reduce our bill. And it worked. We were able to trim thousands of dollars in expenses month over month. But here’s the thing: Just because the market is excellent right now and cash flow is good, we’re still continuing this process. Our admins work on this monthly, scrutinizing each bill and expense, looking for ways to save.

country, still keeps a schedule that often ends long past midnight.

“It’s a tough job,” she admits.

“There are a lot of nuances that make it extremely complicated.

And you don’t really write your own schedule. The client does.

At least, if you want to be successful. But it’s a career unlike any other. You would think that after two decades we would be looking forward to retireLONG LIVE THE QUEEN ment, but that’s not the case.

In a way, finances are just like My husband and I still want to real estate… You have to put be selling houses when we’re in the time. Even Anita, who’s 80. It’s fun. It’s rewarding. It’s established herself as one of the lucrative. And I wouldn’t trade most successful agents in the it for the world. “

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TAKEN INTO

Worth the Squeeze What does your business have in common with a tube of toothpaste?

According to Profit First, more than you might think.

In 1955, modern philosopher C. Northcote Parkinson came up with the theory that the demand for an economic good expands to match its supply. In economics, this is called “induced demands.”

It’s why, for example, expanding roads never actually reduces traffic congestion—more drivers show up to fill those extra lanes.

The same is true for work.

Work always expands to fill however much time you have available to complete it. For example,

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if there are six months available to complete a project, you’ll spend six months working on it.

Give yourself only one month, however, and you’ll get exactly the same amount of work done in one-sixth of the time.

The same is true for anything: food, time, even toothpaste.

Think about it: How much toothpaste do you use when you have brand new tube? You open the cap and squeeze a nice, long bead of blue gel on that brush—

some of which inevitably falls into the sink as you start brushing. But who cares? It’s a new tube. You put more on and go about your evening brushing routine.

But when you open that cabinet door and find a nearly empty tube, the game changes. You squeeze, twist, roll, smoosh, anything to get just one more dab.

Turns out, that dab is just as effective as the long bead. But isn’t it funny how your behavior changes based upon what’s available?

Brushing Up on Profit Parkinson’s Law triggers two behaviors when supply is scant.

First, you become frugal. When there is less toothpaste available, you use less to brush your teeth. Second, you become more innovative, finding more ways to extract more toothpaste from the tube. So what happens when you intentionally use less to accomplish the same task? You will have to learn how to innovate.

Profits and expenses work under the same principle. When profit is at the end of the equation, all the money coming in is up for grabs. The ‘time’ factor in Parkinson’s Law is replaced by the money factor— if you have X amount of money available, your expenses are free to expand into that space. Flip it around, though, and the amount of money available for expenses is suddenly reduced. It’s finite. The amount you want to earn in profit simply isn’t available to spend, but you manage to get the job done without it.

And it’s not a magic trick. It’s not at the expense of quality or sanity. Rather, is forces us to stick to what is actually available—this much money, no more. We hustle a little harder, think a little deeper, and come up with new ways to do things, or create new methods that don’t require as much capital to be spent on expenses.

We surprise ourselves. We do that which we perceived to be impossible.

The Cost of Growth Growth is a big buzzword in the business community, and for good reason. But it’s easier said than done, right?

Here’s a common problem a lot of businesses face: they devote years of effort to consistently increasingly sales. Year on year, their numbers go up, and they continually invest in new technology, methods, staff, and other things that seem vital to their

All businesses strive for success.

But what they often fail to consider is what it will cost to get there, and what they will have to show for it when they finally arrive.

continued efforts at growth.

They have a goal in mind.

Maybe it’s $100,000, maybe $1 million, maybe more. But somewhere there’s a magic number.

If they can reach that number, they’ll have “made it”. They’ll be successful.

Yet, the questions so many businesses fail to ask are, “What’s it going to cost to get there?”

And, “What will we have to show for it when we finally arrive?”

Take, for example, a business owner we met at a networking group. He recently shared that his company hit $50 million. Sounds impressive, but that same person was also looking for investors, and said his business would be finished in just six months if they didn’t find one. Despite a huge amount of very fast growth and an enormous volume of revenue every year, his business turned zero profits, accrued equally large debts, and had no way to cover their running costs.

This is an extreme example of a common problem. Businesses invest so much in growth that they have little or even zero profits to show for it, and while business is booming and turnover is skyrocketing, profits never grow at all.

In traditional accounting models, sales and/or growth is what leads to profit—you have to spend money to make money. But what actually happens is you sacrifice profit for the sake of growth.

Paste and Profit Profit First uses Parkinson’s Law to flip the script: profit leads to growth. It seems counterintuitive, but Profit First founder Mike Michalowicz points out that it’s actually a very growth-friendly model.

“More growth actually happens gofigureaccounting.net / 17

GO WITH THE CASH FLOW

Rachel offers tips for setting up Profit First for your business.

“If your company isn’t where you would like it to be and cash is not readily available, it is because you are not managing cash well. Small steps will get you to that goal. And that’s how Profit First works—with small steps.”

Rachel Siegel should know. As a Certified Profit First Accountant, she’s seen the small steps in action. “Most of the clients who come to Go Figure typically have one, maybe two bank accounts for all of their finances,” says Siegel. “When you’re looking at one large lump sum in your bank account, you’re much more likely to spend freely spend because everything feels like a small sum of the whole account. But if you separate all of your income to predetermined allocations based on percentages, you force yourself to think more critically about your spending.”

The book recommends setting up five foundation accounts to start, but Go Figure suggests starting with one. Make a savings account in your existing bank and then allocate one percent of your income to that account. This is your new profit account. The logic is if you bring $1,000 of income this week, you can certainly run your business off $990. Ten dollars seems arbitrary, right?

Then we move to two or three percent. You can run your business on $980, then $970. If you do that for a few months and your profit account grows thanks to a nearly non-existent pain point. Suddenly, you’re ready for more foundation accounts, a.k.a. envelopes.

Your exact percentages will depend on your business structure, type of business, and current financial situation, but your five accounts will be “Expenses,” “Debt,” “Owner’s Pay,” “Tax,” and “Profit.” Twice a month, the money coming in is divided by the percentages you have calculated and allocated to its applicable account to be used only for its specific purpose.

The true and greatest benefit of Profit First Method is the ability to create real, tangible improvements in your finances—both personally and professionally—on an ongoing, scalable, and sustainable basis.

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when there’s less money,” he says.

“When there’s less supply available, we become more innovative in extracting more value of what remained. So, by taking our profit first and having less money available for operating expenses, it actually facilitates growth because it forces us to be innovative.”

When you are creating real profit in your business, you’re in a position to invest in true growth opportunities when they occur.

And you’re able to do it without putting your current business and the success you have achieved in it at risk. Six months down the line, if it proves to be less than profitable, your existing profit margin will still be there. You may have failed to increase it that time, but you’ll still have it.

It’s natural to want to put all your profits back into your business, thinking you’re planting the seeds for growth. What you’re actually doing is sowing a future disaster.

You can still hit your magic number, and you can still grow, but with the Profit First system you have a little extra left in the tube to protect your business and ensure that every stage of growth is sustainable. Now that’s something to smile about.

Want to learn more about Profit First and how it could work for your business? Contact us today.

Growing Plans Three small business experts weigh in on the biggest opportunities for growth in 2021.

Tony Pullaro Marketing Director, Red Mesa Group

Micro-influencers offer the biggest opportunity for local-level marketing right now. Small businesses and brands can partner with local bloggers and influencers to drive sales and awareness. Whether it is a restaurant, clothing shop, beauty or health product, micro-influencers know the local community better than any big-name celebrity.

It’s the new networking. Their posts, stories, TikToks, and tweets are the new advertising, reaching people where they are and influencing where they go, what they eat, and what they buy. Even a rising star with just a few thousand followers can have a generous ripple effect on your business, if it’s done in an authentic way.

Jon Fasoli

Vice President and Business Segment Leader of Small Business, QuickBooks

Consumers are shopping online now more than ever, and it’s unlikely that these new shopping habits will change. Small businesses need to support how their customers want to shop, whether in-store, online, or across multiple digital marketplaces. A recent QuickBooks study found 28% of small businesses are selling more products and services online in 2020, and 94% say the coronavirus influenced this change.

In 2021, we expect the growth in online payments to continue as small businesses move away from check and cash payments. This will be coupled with a growth in online-only banking solutions, like the new QuickBooks Cash offering, that link to online payments capabilities and provide immediate and next-day access to funds resulting from sales.

Maria Melo

Senior Business Advisor, Yahoo Small Business

Consumers have grown accustomed to new and creative forms of marketing and customer engagement, with a specific focus on video. [Even has the economy reopens] SMBs will increasingly use video communication to build relationships with their customers—for example, for a business selling electronics that customers may have trouble installing, video conferencing with shoppers to provide support; or a business selling apparel and accessories, hosting a virtual runway show. Virtual, experience-based marketing will become key to successfully engaging customers in the new year.

Over the last year, SMS marketing has also become widely popular among business owners, more specifically, retailers. The average open rate of a text message is about 99%, with 97% of messages read within 15 minutes. Many business owners are homing in on this and incorporating SMS with their other marketing channels. gofigureaccounting.net / 19

CPA Q&A

Rachel Siegel, CPA

Spending Mixed Signals

Rachel answers your most pressing business questions.

“I love taking courses, but it’s hard to know which ones will benefit me in the long term. How do I know what to prioritize in my spending?”

The good news is that many types of continuing education can have a tax benefit to you or your business. However, as to whether it’s the best use of your money? It depends.

If you are in a field where continued education is necessary to keep a license up to date (attorneys, financial planners, CPAs, doctors), then prioritizing spending in those areas is important. If you simply like to keep up with industry trends or expanding

your skill sets, then it becomes a Profit First percentages, then we matter of budget. go. If we can’t, then don’t go this The better question is: Is this year, but I can create a separate expense within your budget or account to cover this particular financial plan? This is where event for next year and start a program like Profit First can saving now. really come in handy.

Bottom line: You can take all Let me share an example. The the classes you like if you plan AICPA, American Institute of for them, and it fits into your CPAs, puts on one annual conbudget! ference that is everything CPAs need for continuing education “How does startup for that year. It combines netfunding work? Is it working and education in a fun a good option for my location, and it’s really expensive. new business?”

Upwards of $4,000 per person.

For a firm like ours with several When you’re a new company CPAs, that can add up. How do with a new EIN, you have limited we decide? Well, we use Profit resources when it comes to fundFirst as our guide. ing. We usually advise clients to If we can attend the conferstart with the bank you do busience and still stay within our ness with or look into SBA loans.

The better question is: Is this expense within your budget or financial plan?

This is where a program like Profit First can really come in handy.

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With a few years under your belt, your funding options will expand, especially with a solid growth record or steady financials.

However, if you need an influx of cash to get a product roll-out off the ground, you may need to be a little more aggressive.

Startups typically fund themselves by raising money from outside investors, and each time they do, it’s called a funding round, or Series A, B, C. Each round or series represents another stage in the startup’s life—

Series A is for an initial launch, Series B is for expansions, and Series C is often for established businesses who want to upscale or make acquisitions.

Many businesses are having initial success with Kickstarter campaigns, which can also be known as pre-seed funding or seed funding. It’s a manageable way to develop interest in your product and attract “investors” who want to see you succeed without a requiring a huge ROI. Just remember, Kickstarters are income and it is taxed as such.

Bank loans are not.

If Kickstarter is your Pre-seed or seed funding round, your funders aren’t professional investors, just friends or family who want to see you succeed.

Series A is typically product launch time. You’ve achieved proof of concept, and investors (a.k.a. venture capitalists) are analyzing data on what you achieved with past investments.

Series B occurs when you need to expand. Perhaps you need funds to explore new markets or grow teams surrounding an already successful product or business.

Series C usually occurs after you’re an established business, but you want to scale, develop new products, or even make acquisitions.

The terms of each of the rounds will be unique to the investor(s).

Just watch any episode of Shark Tank and you’ll see a myriad of ways this “funding” will need to be paid back. Taking on investors can seem exciting and a great way to build your business, but it does come with its own unique challenges.

“What type of tax planning agenda do you recommend for a service industry that is an S Corporation?”

We want our clients to be looking ahead proactively— not just spending money to offset taxes (which is an old way of thinking), but making good long-term decisions for the health of their company.

So our ideal tax planning agenda is a year-long endeavor.

No matter how your company is structured, tax planning is incredibly important—whether you are an S Corp making $100,000 or $5,000 in profit.

That said, there is no one-sizefits-all strategy to share. Every business owner will have different objectives for both their business, their investing, and ultimately their personal lifestyle.

At Go Figure, we want our clients to be looking ahead proactively, not just spending money to offset taxes—which is an old way of thinking—but making good long-term decisions for the health of your company. So our ideal tax planning agenda is a year-long endeavor, monitoring income and expenses every quarter and making pivots and corrections as needed. For example, does your company need to buy equipment? If yes, we work with the numbers to see if it’s more beneficial to take the full deduction in the current year, the following year, or depreciate it over time. Do we need to divest assets to offset capital gains? Will the business be adding new employees? Is it time to revisit your company’s retirement programs?

In fact, retirement planning can offer significant tax benefits, both at the owner level and the corporate level. S Corp tax planning is all about making strategic decisions for the health of your business while managing the taxable flow into your personal income.

gofigureaccounting.net / 21

SPOTLIGHT ON THE TEAM THAT PUTS THE “GO” IN GO FIGURE

Bet On Beth!

For Bookkeeper Beth Kisner, kindness and optimism always make for better business.

Beth Kisner’s laughter is full of warmth and life, a vivacious trill that invites you to lean closer and join in on the fun. It meshes well with her light-hearted demeanor, making her the perfect antidote to tax season and financial reporting. The fact that she’s an organized genius who is also good with numbers is just icing on the cake.

This laid-back verve fits right in with Go Figure’s people-first mantra. “In a large accounting firm or business, you might never speak to a client and that’s just not me,” says Beth. “What I love most about this job is connecting with the people, hearing stories about their kids or pets or vacations. Better bookkeeping just helps them have a better life in the long run, and that’s what is most important to me.”

She’s underplaying her value, of course. In reality, Beth’s expertise casts a wide net, spanning four decades of bookkeeping, retail, management, administration, and mom. In

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fact, she’s unabashed about how much on-the-job learning she’s done over the course of her career — balancing 80% of previously-gathered knowledge with 20% of new learning and training. A recipe for success in any P&L Statement of Life.

How long have you been with Go Figure?

Since October. At first in the New Jersey office, but now I’m at the Florida office. We just closed on our Winter Garden home in April!

How’s Florida treating you?

It snowed in Jersey last week, while I was floating in the pool.

What’s not to love?! Actually, this is my second time calling Florida home. I lived in Jacksonville previously, and my sons are still there. So Florida feels like home.

Why Go Figure?

Rachel and I are best friends.

Her husband and my fiancé work together, and the four us became fast friends. We always talked about working together, but the

pandemic turned that into reality sooner rather than later. Which I’m totally OK with!

What’s the best part of your job?

All of it. I love answering the phone and talking to clients. I love helping my co-workers on their projects. And I love learning new things — right now that’s mastering QuickBooks Online.

Have you always been in accounting and bookkeeping?

No. I like to say that I’m a Jack of All Trades. I’ve been in retail, administration, bookkeeping, and management, to name a few.

What keeps you motivated?

I’m just a curious person who wants to keep learning and doing. Preferably having fun at the same time.

When you’re not at work, where can people find you?

Floating in the pool listening to the ‘70s Station on Sirius Radio.

And laughing. Always laughing.

What’s Your Why? Why do people start their own small businesses? They want to work for themselves; they want more money or more control over their futures; they want to be more hands-on; and they want to take on additional roles.

In the United States, a dozen or more small business are launched every single day.

That’s why, earlier this year, Guidant Financial performed a survey of over 2,400 small business owners (SBOs) to find out what drives them.

Of the SBOs surveyed, 29% decided to start their own business because they were ready to be their own boss.

Year over year, this is always among the most popular

motivations. Meanwhile, the number of people who went into small business due to their dissatisfaction with corporate America (17%) increased by 11% this year, possibly demonstrating the struggles employees are facing with corporate decisions during the pandemic including layoffs.

The third most common reason people started their own small business was the desire to pursue their passion, at 16%.

Most SBOs started a new, independent business from scratch, at 58%, while 18% purchased their independent business. Researchers at Business News Daily found that

people were also motivated by the idea of creating something from the ground up.

But the most important statistic of all is the reported happiness of those surveyed. Of the over 2,000 SBOs surveyed, 43% reported being “very happy” in their careers, while 31% are “somewhat happy.” Reports of feeling “neutral,” “somewhat unhappy,” or “very unhappy” were less than 10% apiece.

These statistics are exactly why Go Figure is in business.

We love the passion and drive of small business owners, and are proud to be a part of helping them take control of their careers and turn their dreams into reality. gofigureaccounting.net / 23

F O R W H AT I T ’ S W O R T H

Just Grow With It

Companies are redefining success in a post-pandemic world. We asked a few of our own clients and colleagues how COVID-19 reinvented their business.

Let’s be real: COVID-19 has been a wake-up call for business, shining a blinding spotlight on the crippling vulnerabilities of many organizations. The disruption has ricocheted from Wall Street giants to Main Street mom and pops, bringing many businesses to their knees. No one was immune.

However, it is a common misnomer that business growth is simply defined by a company’s bottom line. There is so much more to it than that. Indeed, the beauty of growth can often be in the eye of the beholder.

In the wake of the pandemic, we’re seeing a surge of optimism when it comes to business

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growth. Conversations at Go Figure have gone from survival mode to exciting pivot strategies.

New products and innovations pepper every coffee conversation and Zoom meeting.

Business owners are redefining what successful growth actual means, and it’s intensely specific. Of course, for some, it’s sales and profitability. For others, employee retention and happiness. Which is why we decided to make the matter personal.

In this report, we’re balancing national voices with local perspectives to give you an intimate glimpse at post-pandemic business success and growth.

The View From Above A new survey of US small and midsize businesses (SMBs) by Bill.com found that 75% of small business owners (SBOs) are moving to introduce new products and services in an effort to drive growth as they navigate year two of COVID. The survey found that while over 4 in 5 (82%) believe economic uncertainty has hindered their business growth—nearly half (47%) believe their businesses will experience growth in the first and second quarters of 2021.

According to the survey, conducted with 1,000 United States small business owners with under 100 employees, only 13% say gov-

ernment assistance or loans would be most critical for them to grow in the current quarter, citing instead an easing of lockdowns (38%) and increasing owner involvement in day-to-day decision-making (26%) as the most important driving factors for growth.

Instead of looking outward for help at the start of the pandemic, 75% of SBOs answered that they took matters into their own hands. Actions taken included offering discounts and pricing changes (51%), new customer outreach (30%), new products or services (26%), negotiated payment terms (23%), and new business model pivots (19%).

The quantitative data is promising. But we were curious for more qualitative feedback as well. So we chatted with a few of the small business owners in our circle to get their views on growth.

and operations for certain clients.

The pandemic also made us more focused in the implementation of efficiencies that we were not utilizing before. So in a certain way, COVID helped set us up for better success in 2021.

What are your opportunities for growth this year?

Our focus on the Horizon West geographic area creates the biggest opportunity to growth, knowing that and what is already approved to be developed in this area is exactly what our acquisition goals are.

What are your biggest obstacles to growth?

Owners are selling their properties and not many investors are on the market. Plus, rising home values could become inaccessible to the average housing consumer.

And interestingly, as beneficial as technology and access to resources can be, in the housing market, that DIY mentality presents a threat.

What was the biggest lesson learned in 2020?

Francisco Nieves-Taranto

RentCare Property Management

What does growth mean to you in 2021?

Growth means to increase the profit by improving the acquisition of new business closer to our target market. The term ‘reinvent’ certainly applies to our firm, but not just as it applies to remote work-from-home and paperless initiatives. The government regulations have impacted our process

Having a good saving habit for your business.

How have your strategies changed for 2021?

We increased the marketing budget and cut on expenses that directly impacted office operations directly, like office space.

What’s the main thing affecting your cash flow right now?

Debt service and the increase in insurance cost for business has multiplied five times!

Emily Tornatore Pub Napkin Partnerships

What did you learn about your business in 2020?

I was so lucky to have just been starting my business in 2020. It was a blessing in disguise that everything was done virtually. Had I started coaching in a non-pandemic, I think it would have taken me a while to realize how successful virtual partnerships could work. While I enjoy meeting with my clients in person, virtual sessions open up the market and maximize everyone’s time.

What does growth mean to you in 2021?

Specifically, I’d like to increase the number of one-on-one coaching clients and build to two collaboration groups per month. I have been working on a package to offer to new business owners to help them work thru what they don’t know in order to eliminate many of the time consuming learning processes that go along with starting a new business. Having an accountability partner and a thought partner is so important, especially now when so much is being done virtually.

What are your biggest obstacles to growth?

Time and virtual school! We have two sons and with them home my work hours are more limited than if they were in school full-time. gofigureaccounting.net / 25

How did your financial strategies What does growth look like in change for 2021? your business?

I am starting to follow the Profit First method. Rachel has helped me realize how important it is to have a plan and stick to it.

What’s the main thing affecting your cash flow right now?

Those who I can really help are those who are overwhelmed or just starting out in their business. The overwhelmed find it hard to take the time to have a consultation with me and those starting out in their business have a variety of things they are budgeting for.

As a result, many carriers have been forced to exit the market and premiums have increased astroWe measure growth using 2 key nomically. Finding new ways to performance indicators. Retenoffer and deliver competitive and tion ratio and the number of comprehensive insurance soluclients who are promoters. The tions to our personal and business higher the rate of clients choosing to work with us year over year clients remain a priority. and the higher the number of clients referring to us the higher our chances to grow and succeed. Those 2 factors are directly impacted by our delivery of our value proposition, provide a consistent level of service and earn and keep the trust of our clients.

What are your opportunities for growth this year?

Cross-selling and upsetting our client base. Many of our clients are often surprised we represent national house brand carrier such as Progressive and Safeco.

We need to focus on an awareness campaign to educate our clients on the different services and products we can offer will go a long way in helping us achieve growth in 2021.

Heather Aycock Catalyst Travel Design

How did the pandemic reinvent your business?

I was a chemist in the pharmaceutical industry for 20 years, but I became increasingly unhappy with my corporate environment.

Travel was my outlet, so I decided to look into career options as a Gus Aref travel advisor. After extensive PlanLife, LLC research, I applied for and was What was the biggest lesson selected to a mentorship program What does growth mean to you learned in 2020? with Largay Travel. Taking on a in 2021?

The value of having the right talent change while a pandemic was Dedicating our agency in supworking with your team is crucial unfolding forced me to grow perporting our existing clients. The to the growth of the business. sonally and professionally. key in 2021 is investing in keepInvesting in human capital is a ing our clients and playing a key must, finding the right people is What’s the biggest lesson you in helping them cope with post extremely difficult and requires a learned in 2020?

COVID recovery. Thankfully, lot of work and search to be done.

I share a common feeling with we are a recession-proof indusa big portion of the population try. Although we did not meet What are the most important who had to reevaluate what they our growth plans in 2020, we growth issues in your business really wanted out of life after managed to maintain our book or business sector right now?

2020. I have to give credit to my of business by spending more host agency for taking an incredtime with existing clients helping The insurance industry is facing major issues lead by contractors ible lead to reinvent how they did them cope with the adversity and attorneys frivolous claims business, and to support and enof the pandemic. For 2021, we and lawsuits. This has single courage each and every advisor. anticipate growing our business handily changed the dynamics of They were a model for how to pull through cross-selling and a upthe insurance industry in Florida. through such a difficult year. leveling our marketing.

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LOOK I NG IN

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AN D

H O M E

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ELLEN PROBST R E A LT O R ® R N , N P

TRACE Y FORRESTER R E A LT O R ® G R I , G K C

407.815.4420 ElleSellsFlorida@gmail.com ElleSellsFlorida.com

914.582.8521 Tracey@TraceyForrester.com TraceyForrester.com

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