The Power of Saving | By: John Mollica, CPA, CISA
SALES! SALES! SALES!!!!!!!!!!!
That’s all that matters, right?
You’ll hear this all day. You’ll hear other franchisees brag about how high their sales are. You’ll feel so proud and excited (and you should be!) when you close a whale. You get excited thinking about how many sales you can close in a single day.
So is that the end of the story? Sales should be your only focus and is the only thing that matters?
Not even close. Sales have a long, long journey before they end up in your pocket. Net income represents what you’re left with after all expenses have been accounted for.
Cost of Goods (cost of production or deliverance of your good or service)
Operating Expense (Selling and administrative expenses, office supplies, auto expenses, depreciation, insurance, non-production payroll, etc.)
And don’t forget the nice fat cut that goes to the IRS in the form of income taxes!
So let’s say you have a net profit margin of 25%. So for every dollar you earn, a shiny quarter ends up in your wallet.
So what about savings?
What happens if you save a dollar? You get… A DOLLAR! Nobody gets a cut. It ALL goes to you! Makes sense, right?
That also means that if you can save a dollar, you would have to earn FOUR DOLLARS ($4) to end up with the same amount. $4 in sales = $1 in savings. In other words, Savings have 4x the value of sales. Think of sales as iron and savings as diamonds. Savings are much harder to come by, but if you’re lucky enough to find them, don’t give them up!
Of course, it’s important to note that not all savings are created equal. For example, if you try to save money by buying inferior materials or supplies, you can actually reduce the quality of your offering. That is NEVER good thing.
On the other hand, if you save money on taxes, it only means money in your pocket. Paying more in taxes is not good for your customers, your business, or yourself. The only tricky part with taxes is that reducing them in complicated! You could make a mistake and end up under the scope of the IRS. Definitely not a place you want to be.
So what if you could save $20,000 this year on your taxes? And what if you knew exactly how to legally do it, risk-free? If you see an offer like this, remember this is the equivalent of gaining sales of a whopping $80,000. How many pizzas, consultations, repairs, installations, or lessons would you have to provide to earn $80,000? How many hours would it take to close so many deals?
That’s where we come in.
We save our franchisee clients from $15,000 to $35,000 in taxes every year. We know exactly how to do it within the framework of the law, so you can rest easy you’ll have all the support to back up the savings. Find out if you qualify for our franchisee tax savings plan by clicking the link below and picking the best time for you.
John Mollica, CPA, CISA