Become Sensible

When running a business, finding the balance between paying yourself, managing cash flow, and growing the company can feel impossible. What happens when your resources are stretched thin, and you're questioning your next steps? This episode unpacks the struggles and solutions.On this episode of Become Sensible, Fiona and her co-host dive into the nitty-gritty of early-stage business challenges. Together, they tackle a case study of a product-based entrepreneur facing inventory bottlenecks, funding hurdles, and personal financial strain. We explore essential topics like raising capital, understanding your breakeven point, building relationships, and making strategic moves to keep your business afloat while still managing personal obligations. It's a masterclass in prioritizing what truly matters."Running a business is hard, but with the right strategy and mindset, you can build something extraordinary." Tune in to discover how to focus your time and energy where it counts most and embrace the resilience it takes to succeed.ConnectFollow me, Fiona Nguyen, on LinkedIn. Learn more about Balannx.Timestamps:0:00 - Introduction and the reality of juggling personal and business finances2:30 - Exploring a case study: the entrepreneur's cash flow and funding challenges5:00 - The importance of inventory management in a product-based business7:00 - Strategies for raising capital: self-funding, angel investors, and venture capital10:30 - Aligning your resources: capital, time, expertise, and relationships15:00 - How to identify your breakeven point and prioritize efficiency18:30 - Balancing quality, customer promises, and business growth20:00 - The concept of balance in business: myth or reality?25:00 - Building resilience: creating recovery moments and sustainable habits30:00 - Practical advice for testing a business idea and knowing when to pivot31:00 - Closing thoughts and listener questions: balancing passion and strategy

Ever wondered if an S Corp structure could help reduce your tax burden? Many business owners are surprised to learn how shifting their LLC to an S Corp could save them thousands. But the journey isn't without its hurdles---phantom income, self-employment tax, and missed compliance deadlines are just the beginning.On this episode of Become Sensible, Fiona and Anh dive into the world of S Corporations, discussing why and when it makes sense for a business to transition from an LLC. They examine a real-life client case involving a creative agency, tackling common pain points like self-employment tax concerns, phantom income issues, and challenges in keeping personal and business finances separate.ConnectFollow me, Fiona Nguyen, on LinkedIn. Learn more about Balannx.Timestamps0:00 - Introduction to the episode and today's case study1:30 - Overview of the client's business: structure, revenue, and tax issues3:00 - Understanding phantom income and its impact on LLC members5:00 - S Corp advantages for reducing self-employment tax7:15 - Step-by-step guide to filing for S Corp status9:30 - Common administrative errors and tips for staying compliant12:00 - The importance of separating personal and business expenses15:30 - Strategies for effective quarterly tax planning18:45 - Tips on reasonable salary and tax savings for S Corp owners21:00 - Listener Q&A: Operating agreements, home office deductions, and more25:30 - Wrap-up and final advice on navigating the LLC to S Corp transition

Are you trying to decide if an S Corporation is the right choice for your business? I know it sounds appealing with all those potential tax savings, but making the wrong choice can lead to unnecessary complications.  But how do you know if an S Corp is truly a smart move for your business?On this episode of Become Sensible, I'll take you through everything you need to know about S Corporations---from what they actually are to how they differ from other structures, like C Corporations. I'll cover the unique tax benefits, the requirements and limitations, and how this entity type can impact your long-term growth strategy. Whether you're a new entrepreneur or have been in business for a while, this episode will help you understand if an S Corp is the right move for your situation.Connect Follow me, Fiona Nguyen, on LinkedIn. Learn more about Balannx.Timestamps0:00 - Introduction to S Corporations and common business questions1:00 - Understanding what an S Corporation is and its unique tax treatment3:00 - Pass-through benefits and how they differ from a C Corporation5:00 - Key components and restrictions of an S Corporation8:00 - Tax advantages and the role of self-employment tax10:30 - Who should consider an S Corporation and the factors involved12:00 - Calculating reasonable compensation and IRS expectations15:00 - Weighing S Corp costs vs. benefits for small business owners18:30 - Common misconceptions and mistakes with S Corporations21:00 - Choosing between LLC and S Corporation based on business phases24:00 - Planning ahead: S Corporation requirements and deadlines26:00 - Key takeaways and final advice on choosing the right business structure

Turning a creative passion into a thriving e-commerce business is an incredible journey! But along with the excitement of launching products, the reality of managing sales tax, bookkeeping, and finance essentials can quickly feel overwhelming. So, what if we had a clear roadmap to handle it all?On this episode of Become Sensible, we tackle the complexities creatives face when managing sales tax compliance across multiple states, understanding bookkeeping needs, and setting up efficient systems for growth. Together, we explore how to stay compliant with tax laws, choose the right accounting software, and protect time for creativity without getting bogged down by numbers. Whether you're a new business owner or scaling up, this episode offers practical insights to navigate the financial side of your business confidently."Managing finances is a skill you can learn and master. It's all about starting strong and setting up systems that work for you."ConnectFollow me, Fiona Nguyen, on LinkedIn. Learn more about Balannx.Timestamps0:00 - Introduction to sales tax challenges for creatives2:00 - The basics of sales tax and digital product compliance5:45 - Understanding Nexus and state-by-state sales tax requirements8:15 - Tips for navigating multi-state tax obligations12:00 - Choosing the right accounting software for your e-commerce store15:45 - Why creatives need automated systems for bookkeeping18:30 - Handling bookkeeping and finances without interrupting creative flow21:00 - Essential questions to ask your accountant23:30 - Staying compliant with sales tax deadlines26:00 - Financial confidence through regular review and tracking systems28:30 - The biggest financial mistakes creatives make and how to avoid them

It's easy to put off taxes---until the years pile up, and suddenly, the task feels impossible. But you don't have to do it alone. What if I told you that catching up on back taxes is simpler than it seems, and getting started today could save you from bigger problems tomorrow?On this episode of Become Sensible, I introduce my new co-host, Anh, and together we dive into the story of “Samantha”, a graphic designer who came to us with three years of unfiled taxes. We walk through the exact steps I take with clients to prioritize the oldest tax year, minimize penalties, and catch up on bookkeeping. "The best time to start is yesterday, and the second-best time is today." If you've been avoiding your taxes out of fear or overwhelm, I want to assure you---it's never too late to turn things around. ConnectFollow me, Fiona Nguyen, on LinkedIn. Learn more about Balannx.Timestamps0:00 - Introduction to the episode and my new co-host, Anh  2:00 - “Samantha's” story: A graphic designer with three years of unfiled taxes 5:15 - Where do you even start if you haven't filed taxes in years?  8:30 - Should you manage your taxes or hire a CPA?  10:45 - Using AI-powered accounting tools for faster tax prep  14:00 - How does the IRS calculate penalties and interest?  17:00 - Can you request a waiver for penalties?  20:45 - Fixing automatic IRS filings with amended returns  24:30 - How important is keeping up with bookkeeping?  27:00 - Encouragement: "Better late than never"  30:00 - Final thoughts: Don't be ashamed---just start today

Q4 is here---are you ready to finish the year on a high note? Whether you've had an incredible year so far or faced challenges, now is the time to set strategic financial goals to close 2024 with success. But how do you ensure these goals are actionable and impactful?On this episode of Become Sensible, I walk you through a step-by-step approach to setting up your business's financial plan for Q4. From assessing historical data to identifying key performance metrics and setting ambitious yet achievable goals, I provide a practical blueprint for business owners. You'll also learn about the importance of tracking your progress and how to adjust strategies based on real-time data, ensuring your business is positioned for growth as the new year approaches."Failing is a part of the business journey, but it's how we use those lessons that determine our future success."ConnectFollow me, Fiona Nguyen, on LinkedIn. Learn more about Balannx.***Timestamps0:00 - Introduction and the significance of Q4 planning1:30 - The importance of financial reflection and historical data analysis3:00 - Key questions for evaluating your financial performance over the past nine months5:00 - How to set Q4 financial goals that are both challenging and achievable7:30 - Product and offering strategy: Adapting to market changes and customer behavior10:00 - Cash flow and profitability targets for Q412:00 - The impact of changing identity and aligning actions with your goals14:30 - The role of tracking financial habits and progress16:00 - The importance of adapting strategy based on real-time data18:30 - Communicating your business21:00 - Encouragement for building a strong foundation for long-term business success

As a business owner, figuring out how to pay yourself can be one of the most challenging decisions you face. It’s not just about taking a paycheck—there are tax implications, cash flow concerns, and long-term financial impacts to consider. How do you make sure you're doing it right?On this episode of Become Sensible, I break down everything you need to know about owner distributions. I’ll guide you through the different ways to compensate yourself, including how distributions differ from payroll, and what this means for your taxes. No matter if you're a sole proprietor, running an LLC, or managing a corporation, you'll come away with a clear understanding of how to pay yourself and manage your personal finances while staying on top of your tax obligations."Distribution is not just a paycheck; it’s a financial decision with long-term implications."ConnectFollow me, Fiona Nguyen, on LinkedIn. Learn more about Balannx.***Timestamps:0:00 – Introduction to owner distributions and tax implications1:30 – What is an owner distribution, and how does it work?3:00 – Owner distribution vs payroll: Key differences5:00 – Understanding your business structure and its effect on taxes7:30 – Real-life example: How an S-Corp owner handles payroll and distribution10:00 – The risks of drawing too much from your business12:00 – Tax implications for sole proprietors, LLCs, partnerships, and corporations15:00 – The importance of managing owner equity and reasonable compensation17:00 – How to plan your owner compensation with tax strategies in mind20:00 – Wrap-up and final thoughts on paying yourself as a business owner

Ever wondered how to stay agile while keeping your business finances on track? Budgets provide structure, but what happens when market conditions shift? How do rolling forecasts help you adjust in real time? The answers may surprise you.On this episode of Become Sensible, we’ll dive into the fundamental differences between financial budgets and rolling forecasts. I’ll explain how budgets offer a snapshot of your business plan, set at the start of the year, while rolling forecasts give you the flexibility to adjust projections based on real-time performance. You'll learn how to combine both tools to drive smarter business decisions and stay ahead of changes in your market.Whether you're preparing for year-end or planning for the next quarter, this is one episode you’ll want to pay attention to."Budgets set the goal, but rolling forecasts bring reality into focus."LinksPrevious Episode on BudgetingConnectFollow me, Fiona Nguyen, on LinkedIn. Learn more about Balannx.