The Prestige Solution
We have special guest T. Jayden Doye, CPA and President of Prestige Accounting Solutions.
Tune in for Jayden's insights into why tax planning with your CPA is important. Learn how he has grown his accounting firm to a six figure practice since opening in 2019.
Learn more of Jayden's insights on Prestige Accounting's Youtube Page or on Instagram.
PODCAST TRANSCRIPT
Darell Brown:
Welcome to the ProProject podcast with ProProject Bookkeeping. This is your host, Darell Brown, I'm bringing you bookkeeping tips and tricks to make your project finances run a little smoother. I have a new guest for today's podcast. I'm excited to have him on because I think he will give most a double take on what they would expect from a CPA. As a CPA, he focuses on the entrepreneurial aspect of business, which is leveraging your company to create wealth so that you can have the lifestyle you want. He is T. Jayden Doye, CPA and president of Prestige Accounting Solutions. I want to get into his entrepreneurial insights and intro, but first I'm going to read a quote. "While most accounting firms act retroactively, we differ ourselves and work proactively." So Jayden, please introduce yourself and let us know what you mean by that quote.
T. Jayden Doye:
Sure. Thank you for having me. My name is Jayden Doye, CPA, president and founder of Prestige Accounting Solutions. We help entrepreneurs become more profitable and pay less than taxes through effective tax planning. So that quote, it speaks directly to how we help our clients. So most accounting firms that I've worked for or have come across, they speak to their clients once, maybe twice a year to where they are just filing the returns or helping them handle a problem that has been lingering for some time.
But I wanted to diversify my firm that I started from the ground up by having in our business model the fact that we want to avoid those problems in the first place. So we work with our clients throughout the year. We have either monthly or quarterly tax planning meetings, where we're reviewing their financials. We're looking at their full picture of their tax profile to see how everything as far as income and expenses are concerned, are as affecting them tax wise and what moves need to be made to avoid a large tax liability.
Darell Brown:
And with that, I mean, what I love of course also is that in addition to being a CPA, you're a business owner as well from my understanding your business has grown quite large in the period that you've run it. So I want to get your perspective on that too. So in addition to being a CPA, you're also a business owner trying to grow your business. So what additional insights can you offer to your clients as a business owner?
T. Jayden Doye:
Sure. So thanks for that compliment. I have actually grown my business from having zero clients, $0 to a six figure book of business. The year is just about halfway over and I've already hit over $150,000 in revenue. Now, most CPAs don't do that for it takes them years, get there. And most CPAs are a one man shop or one woman shop for many years. And that's because I just think that a lot of CPAs when they start their own firm, they just don't really have the end mind and goal. And I mean the end goal in mind, rather. So for me, I see my firm being a big firm. I'm not saying that I want to have the big four or be a part of that because I think sometimes when businesses grow too fast or too large, then the overall vision, mission, it kind of dwindles.
So I don't ever want to dilute what the goals are of our firm. But I do recognize that if you want to grow a business, then you have to be serious about it. And you have to delve into the nitty-gritty of all of the business aspects of your business. So for me, being a certified public accountant and having a business model that is based on diversification versus a price model, I cannot market my business the same way that everyone else markets their business. So for me, I have to do extensive research on what marketing efforts work. And I have to do extensive research on what the pain points of my target market is. So once I know what those pain points are, then I know how to center my marketing material around those pain points, because that will trigger a thought to them that, you know what I need to be working with him.
That'll show people that I am the industry expert. When I'm talking to real estate investors. And then I explain to them a fix and flip property is not taxed the same as a buy and hold property. So if you are an investor and you are investing in multiple at the same time, then you need to have those in separate entities. Because what we don't want is once to get this tax planning process started, and then the IRS lump everything together. And then all that hard work in putting these tax planning strategies into play is null and void because the IRS is going to tax you in the manner in which it's more beneficial to them.
Darell Brown:
One aspect of that is like most people they consider their CPA that kind of year in penance, they have to do because taxes are due April 15th and they're always hoping for a refund. But a lot of people don't actually think about that, about the financial planning and how that goes into the tax planning strategy that can actually save money, if you are actually working with the CPA throughout the year. Can you explain some of the benefits of working with a CPA and how you can actually help them tax plan through the end of the year?
T. Jayden Doye:
Absolutely. So a lot of clients don't realize that there is something called an underpayment penalty. So as a self-employed individual, the IRS expects you to have a crystal ball and know exactly what your tax is going to be and pay that throughout the year through quarterly estimates. But realistically, that is very difficult for people that don't have an accounting background to compute. So it's very important that they work with tax strategists like myself to help them throughout the year, get those amounts. So avoiding the penalty is the number one benefit.
Two by talking throughout the year, then we are able to assess changes in tax payments due to changes in business. This year, we've saw the largest pandemic that I've seen during my lifetime, and that has affected a lot of businesses, good or bad. There have been large spikes in the profit and loss statements. And when there's spikes like that, it's very important that you also think about how that affects your tax liability. So in the past, working for other firms, there were times in which I would have a client that we didn't do tax planning for. And then they have a large 80,000, $20,000 tax bill that breaks my heart to tell an entrepreneur, Hey, guess what? I know you're getting ready for vacation, but just to let you know, you need a cut a $20,000 check to IRS.
Darell Brown:
Yeah. That's not a happy conversation.
T. Jayden Doye:
Exactly. It's not. And that's why we can avoid that conversation by planning throughout the year. The whole goal is to break even not get a tax refund not 0, we're trying to get as close to zero as possible. And also throughout the year, we can talk about what avenues in which you can go down to save on taxes. We're you can move money versus me telling you in December, Hey, I need you to put $10,000 in this type of tax-deferred account. No, I'm going to tell you in the beginning of the year, so that you can split it up throughout the 12 months of activity, you can budget for that.
Darell Brown:
I know this year specifically with the pandemic, there are so many unanswered questions when it comes to taxes. As I know with so many employees now working from home, I know the portion of your home that you can use for tax purposes is really going to be a hot topic this year among entrepreneurs, as well as just employees who have pretty much been working from home since March. And there were a few things, a few questions that I've been getting hit with that I'm like, whoa, we definitely need to get you to a good CPA because they're definitely good questions, but we need to understand how the issues of the pandemic and the realities of the pandemic are going to affect you tax-wise. So that's one of the main reasons why I definitely wanted to have you on and do this podcast.
T. Jayden Doye:
Absolutely. I know with the home office deduction, unfortunately, that was taken out for employees under the new tax law. That was one of the itemized deductions that they said, no, we're not doing that. But for entrepreneurs, that's still an option if you don't have an actual office. So if your home office is your primary office, but for business, then yes, there are options as far as taking a deduction for home office expense.
Darell Brown:
So for anyone with that question, there you have it. If you are self-employed, there are tax benefits to working from home, unfortunately as an employee not so much. All right. So I also want to talk about your webinar. So you are going to be presenting a webinar on foreign earned income exclusion. So can you explain a little bit about that please?
T. Jayden Doye:
Sure. So a lot of businesses, not only do business here domestically, but they also do business abroad. So whether that's exporting, importing or they have another location abroad, the question always comes up how that affects taxes. And so in that webinar, I will discuss the different types of tax benefits that come along. When you do business abroad, I'll talk about how exactly the IRS will look at that income. And so that'll help entrepreneurs who are either thinking about it or doing it now, better navigate their business operations. And then they can go back to their professional and say this probably would benefit me more if the tax rate is going to be only 8% overseas, then I think I'm going to take this operational overseas or if the tax rate is only going to be 21% here, but it's 30% in Europe, then let's bring that, let's create some more jobs domestically. So I think that is very important for businesses that are looking to grow and scale in national level to know how that affects them on a tax level as well.
Darell Brown:
And it's also interesting, again, due to the pandemic, is that even though we're working from home, there are opportunities worldwide. So even though you're sitting in your home office, you could have clients, in the UK, you can have clients, in Australia, you can have clients in so many different locals and what is the income and what are the tax implications of having business and business and those different territories. So I'm definitely going to be tuning into that for my clients as well.
T. Jayden Doye:
Yep.
Darell Brown:
To close out. I would like to ask Jayden to give any closing thoughts for listeners and besides the foreign hacks webinar. Is there any other information you want to give us or anything [crosstalk 00:12:35]
T. Jayden Doye:
Well, I always have new things going on. I'm always giving out new information. So it's very important that all the listeners follow me on social media at the great Jayden. Jayden being spelled J-A-Y-D-E-N. And I'm sure that'll be put in the notes. The reason why important is because most of the time when I'm releasing information about webinars that I'm doing, or just tips in general for different markets, it's going to go on my social media.
Darell Brown:
Gotcha.
T. Jayden Doye:
And then on top of that, sometimes I'm doing what's called office hours. So somewhere webinars are not released to the public and they're only given to my clients. So that's another benefit of being a Prestige member per se. So those who work with me on the tax side, they get that benefit. If they're just on a tax planning engagement, or tax preparation engagement, they get the benefit of being able to tune into those exclusive meetings.
Darell Brown:
And how do they become a Prestige member?
T. Jayden Doye:
So the first step would be, I guess, to send an inquiry either through social media or via email, and they will be then sent a link for them to fill out a short questionnaire and book their appointment. So my email is Jayden@prestigeaccountants.com. And you can just let me know your name, what you do, what you're looking for. And then you'll be provided with the link. And then we'll book a call. And then during that call, we'll discuss what your need are and what we provide to verify that we are actually a good fit. Because honestly, I don't want to take anyone's money that I can't provide value to. So if I'm not a good fit for you, then I will recommend someone that I think might be a better fit and provided everything goes well in our conversation, you'll be set an engagement letter and then boom, get a Prestige member.
Darell Brown:
All right. Prestige member at that point.
T. Jayden Doye:
Yes.
Darell Brown:
So can you give a closing thought or a closing quote to listeners?
T. Jayden Doye:
The first one that always comes to my mind is, “If it's not making dollars, then it doesn't make sense.”
Darell Brown:
Oh, I like that. Thank you, Jayden again, for being a part of the ProProject podcast and leaving us with that amazing quote. If you'd like to get in touch with Jayden or learn more about Prestige accounting solutions, you can visit prestigeaccountants.com. You can catch a replay of the foreign tax webinar on the Prestige Accounting Solutions, YouTube channel. A link to the YouTube channel is also posted in this episode's description area. So as always, I hope this episode has been helpful for you.
If you have any feedback, or if you want to learn more about bookkeeping or accounting for that matter as always, shoot me an email at info@proprojectbooks.com. Once again, that's info@proprojectbooks.com. I'd like to ask everyone tuning in today to please tune in for our episode next week, Tuesday, September 1st for a special announcement, we've talked to a lot of new entrepreneurs, newly self-employed solopreneurs, and we want to do something to help them build their business finances. So please tune in week. Until then this is Darell Brown of the ProProject podcast. Signing off in the words of Jayden Doye. If it's not making dollars, then it doesn't make sense.