| Year | Total Income | COGS | Gross Profit | Expenses | Net Income | Margin % |
|---|---|---|---|---|---|---|
| 2017 | $437,179 | $93,214 | $343,965 | $219,292 | $127,552 | 29.2% |
| 2018 | $488,797 | $161,502 | $327,295 | $196,947 | $115,031 | 23.5% |
| 2019 | $505,235 | $161,099 | $344,136 | $362,533 | -$18,397 | -3.6% |
| 2020 | $624,521 | $207,032 | $419,329 | $323,321 | $80,961 | 13.0% |
| 2021 | $838,926 | $267,166 | $571,759 | $470,086 | $85,822 | 10.2% |
| 2022 | $567,409 | $229,008 | $338,401 | $247,724 | $90,655 | 16.0% |
| 2025 (proj) | ~$797,000 | ~$239,100 | ~$557,900 | ~$350,000 | ~$207,900 | 26.1% |
| QBO Code | Category | Amount | % of Expenses | Trend |
|---|---|---|---|---|
| 61000 | Labor (team wages, VA) | $104,705 | 42.3% | Largest line item |
| 68000 | Supplies/Office | $42,201 | 17.0% | Stable |
| 65000 | Continuing Education/Coaching | $35,459 | 14.3% | High — includes Buffini |
| 62000 | Lead Generation | $27,907 | 11.3% | Variable |
| 64000 | Communication/Tech | $15,869 | 6.4% | Stable |
| 66000 | Automobile | $13,400 | 5.4% | Stable |
| 69500 | Professional Services | $3,596 | 1.5% | Low |
| 69000 | Insurance | $2,814 | 1.1% | Stable |
| TOTAL EXPENSES | $247,724 | 100% |
Labor + Education = 56.6% of all expenses. Joe invests heavily in his team and his own development. Labor costs correlate with team size growth (DLO, SMT, GAV, EDE). Education includes Buffini coaching ($2,240/mo = ~$27K/yr), TaxAlchemy ($50K in 2025), and Decentralized Masters ($25K in 2025).
COGS tracks at ~30-40% of revenue consistently. This is the KW split, referrAL payouts, and E&O costs. As JRD stays capped, the effective COGS drops (royalty OFF, company split OFF).
2019 was the anomaly year — expenses exceeded gross profit by $18K. This was the only loss year in the 6-year period. Since then, expenses have been disciplined relative to revenue growth.
2025 projection shows the S-Corp working — ~$797K gross income per TaxAlchemy (Feb 2026 meeting), with optimized deductions reducing AGI from ~$390K to potentially ~$190K after film ($214K deduction), cost seg ($67K), SEP IRA ($50K), and crypto education ($25K).
| Category | Business/mo | Personal/mo | Combined |
|---|---|---|---|
| Fixed Costs (rent, insurance, dues) | $5,557 | $1,250 | $6,807 |
| Wages (VA + Labor) | $6,379 | — | $6,379 |
| Software + Tech | $1,180 | — | $1,180 |
| Channel/Marketing | $1,453 | — | $1,453 |
| Living (needs + wants) | — | $2,450 | $2,450 |
| Savings/Investment | — | $5,000 | $5,000 |
| Debt Minimums | $2,850 | $4,703 | $7,553 |
| TOTAL | $12,804 | $10,168 | $22,972 |
Breakeven: 1.47 transactions/month at avg commission $13,500 and 76.6% net after splits. Target: 3 transactions/month.
1040 data (2017-2022 from Spending Plan) + 2023-2024 from personal GDrive + 2025 from TaxAlchemy
Map all expenses to QBO codes: 51900 Marketing, 61000 Labor, 64000 Tech, 65000 Education, 66000 Auto, 68000 Office, 69000 Insurance
Revenue growth rate, expense growth rate, margin expansion/compression, COGS ratio changes
Flag years with unusual ratios: 2019 loss year, 2021 peak revenue with low margin, 2025 new S-Corp strategies
Using 2025 TaxAlchemy projections + Profit First targets, model 2026-2028 with current growth trajectory
Complete multi-year analysis with charts, anomaly flags, and forward projections