Thanks to our partners, NAPA TRACS and Promotive

In this episode, Hunt explores the crucial difference between profit and cash flow. Learn why your high profits don't always translate into more cash in the bank and how to better manage your shop's finances.

• Difference Between Profit and Cash Flow: Understanding why profit and cash flow are not the same and how this affects your financial planning.
• Accounts Receivable Impact: How the timing of your transactions can create a lag between recording a profit and actually seeing the cash.
• Managing Inventory: The effects of inventory purchases on your cash flow and strategies to manage it effectively.
• Fixed Assets and Liabilities: The impact of major purchases and financing options on your cash reserves.
• https://www.tn.gov/revenue/2024franchisetax.html

Thanks to our partners, NAPA TRACS and Promotive

Did you know that NAPA TRACS has onsite training plus six days a week support?

It all starts when a local representative meets with you to learn about your business and how you run it. After all, it's your shop, so it's your choice.

Let us prove to you that Tracs is the single best shop management system in the business. Find NAPA TRACS on the Web at NAPATRACS.com

Paar Melis and Associates – Accountants Specializing in Automotive Repair

Visit us Online: www.paarmelis.com

Email Hunt: podcast@paarmelis.com

Get a copy of my Book: Download Here

Aftermarket Radio Network

Thanks to our Partners, AAPEX, NAPA TRACS, and Automotive Management Network

'Business by the Numbers' Podcast host Hunt Demarest discusses common financial mistakes, emphasizing the importance of building long-term wealth through prudent financial management and investment. The conversation covers managing personal and business expenses, the impact of government programs, and the necessity of maintaining financial reserves.

Hunt Demarest, CPA, Paar Melis and Associates, Hunt's previous episodes HERE

Business by the Numbers Podcast

Show Notes

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• Watch Full Video Episode
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• The Brakes for Breasts initiative (00:00:01) https://www.brakesforbreasts.com/
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• Rich vs. Wealthy (00:03:09) The distinction between being rich and being wealthy and the financial habits of wealthy individuals.
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• Money Mistakes and Business Finances (00:04:55) Common money mistakes made by business owners and the importance of long-term wealth building.
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• Personal and Business Expenses (00:06:09) The impact of blending personal and business expenses and its effect on financial statements.
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• Year-End Financial Review (00:09:14) The importance of assessing business finances at the end of the year and avoiding unrealistic financial judgments.
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• Impact of Government Programs (00:10:33) The impact of government programs on business profitability and the potential consequences of misusing funds.
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• Business Trends and Demand (00:11:53) Analysis of business trends, demand, and the need for realistic profit expectations in the automotive industry.
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• Cash Flow Management and Reserves (00:13:59) The importance of cash flow management, emergency funds, and the role of credit lines in business financial planning.
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• AAPEX 2024 Registration (00:17:37) https://www.aapexshow.com/
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• NAPA TRACS Shop Management System (00:18:47) http://napatracs.com/
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• Labor Rate Tracker (00:19:53) http://LaborRateTracker.com
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• Managing Credit Lines (00:20:48) Discussion on managing credit lines, including the importance of using and managing credit effectively.
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• Cash Management and Financial Statements (00:21:49) Insights into managing physical cash, reconciling financial statements, and the importance of accountability.
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• Overspending and Budgeting (00:23:59) Discussion on avoiding overspending, budgeting investments, and making decisions based on return on investment.
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• ...

Thanks to our partners, NAPA TRACS and Promotive

More listener questions answered! This week is all about S Corporation tax benefits, determining fair market rent when renting property to yourself, and the details of sales tax on internal transactions. Optimize your tax strategy and enhance your business operations.

• Understanding the advantages and state-specific impacts of transitioning to an S Corporation.

• The importance of charging fair market rent to avoid future complications when selling your business.

• Clarifying the difference between sales tax and use tax for internal transactions and ensuring compliance.

• Real-life examples and answers to common tax planning and business structuring questions from listeners.

https://www.tn.gov/revenue/2024franchisetax.html

Thanks to our partners, NAPA TRACS and Promotive

Did you know that NAPA TRACS has onsite training plus six days a week support?

It all starts when a local representative meets with you to learn about your business and how you run it. After all, it's your shop, so it's your choice.

Let us prove to you that Tracs is the single best shop management system in the business. Find NAPA TRACS on the Web at NAPATRACS.com

Paar Melis and Associates – Accountants Specializing in Automotive Repair

Visit us Online: www.paarmelis.com

Email Hunt: podcast@paarmelis.com

Get a copy of my Book: Download Here

Aftermarket Radio Network