Month: May 2025

Preface: “One reason people make bad decisions is they don’t have a good decision as one of their options.” ― Dave Ramsey, EntreLeadership: 20 Years of Practical Business Wisdom from the Trenches

Book Report: EntreLeadership 

In EntreLeadership: 20 Years of Practical Business Wisdom from the Trenches, personal finance expert Dave Ramsey distills two decades of entrepreneurial experience into a practical guide for business owners and leaders. The book’s title is a blend of “entrepreneur” and “leadership,” symbolizing Ramsey’s belief that successful business leaders must embrace both roles. Written in Ramsey’s signature direct and motivational style, EntreLeadership provides both philosophical insights and tangible action steps for running a business with integrity, excellence, and effectiveness.

The Leader as a Servant: At the heart of EntreLeadership is Ramsey’s conviction that leadership is about serving others. He rejects top-down, authoritarian leadership in favor of a model built on trust, responsibility, and personal example. He writes, “Your team will never grow beyond your leadership, and your leadership will never grow beyond your character.”

Ramsey illustrates how leaders must act with humility, admit when they’re wrong, and prioritize the well-being of their team. This servant-leader approach is rooted in values such as honesty, discipline, and accountability—traits Ramsey has consistently championed through his career and company, Ramsey Solutions.

Culture is Everything: Ramsey emphasizes that company culture determines long-term success more than strategy or finances. He insists that business owners are the chief architects of their culture. Through anecdotes from his own business, he explains how clear expectations, consistent feedback, and employee engagement can create an environment where people are empowered to succeed.

One key quote captures this focus: “People matter. Hire people you like and want to be around. Protect your culture like it’s gold—because it is.”

Communication and Clarity: A central pillar of Ramsey’s philosophy is the need for transparent, consistent communication. He warns that confusion breeds dysfunction and that silence breeds suspicion. Leaders must overcommunicate, clarify expectations, and encourage honest feedback.

Ramsey introduces the idea of “intentionally redundant communication”—repeating key messages across various formats and forums to ensure they stick. This concept aligns with his broader commitment to eliminating ambiguity from workplace operations.

Financial Principles for Business: No Ramsey book would be complete without discussion of financial stewardship. EntreLeadership devotes several chapters to budgeting, cash flow, debt, and strategic financial planning. Ramsey strongly opposes debt in business just as he does in personal finance. He argues that borrowing robs a business of flexibility and increases risk.

He provides a blueprint for building a business emergency fund, managing accounts receivable, and setting budgets with “every dollar assigned a mission.” His advice here is conservative but battle-tested: “If you live like no one else, later you can live—and give—like no one else.”

Decision-Making and Delegation: Ramsey insists that the best leaders make decisions based on principles, not emotion or convenience. He offers a methodical approach to problem-solving, including gathering input, evaluating options, and seeking wise counsel. But once a decision is made, leaders must own it and follow through.

He also encourages delegation—not to dump unwanted tasks, but to empower others and elevate the team. As he puts it, “You have to be willing to let go of control to grow. If you’re the bottleneck, the company suffers.”

Sales and Marketing with Integrity: Ramsey advocates ethical selling by focusing on long-term relationships rather than short-term gains. He believes in creating value, listening to customer needs, and never manipulating or deceiving clients. “Selling is not convincing,” he says. “It is serving.” He also highlights the importance of branding, visibility, and reputation. A company’s values must be reflected in its advertising, customer service, and word-of-mouth.

While Ramsey’s advice is clear and well-intentioned, it leans heavily toward small business environments and may not apply as directly to large corporations or non-profits. Additionally, his rigid stance on avoiding debt, while prudent, may not reflect the nuances required in capital-intensive industries.

Conclusion: EntreLeadership is a valuable guide for entrepreneurs, managers, and aspiring leaders who want to grow their businesses with integrity and purpose. Dave Ramsey’s blend of moral clarity, operational insight, and leadership philosophy challenges readers to lead not just with strategy, but with heart and conviction. Whether you’re starting out or scaling up, this book offers timeless principles that can help you build a thriving, value-driven business.

Preface: “It is the joy of work well done that enables us to enjoy rest” – Elisabeth Elliot

Why Diligent Business Owners Should Appreciate Pace 

“There’s never enough time.”
“How did I work 12 hours and still feel like I’m behind?”
“I just need to push harder.”

Sound familiar?

For many business owners, the faster they go, the more behind they feel. It’s a paradox that plagues entrepreneurs, especially those driven by passion, pressure, or both. But what if the answer to greater success wasn’t doing more, but doing less, better?

Let’s unpack this truth: “The faster I go, the more behind I get.”

The Trap of Speed Without Direction

In business, urgency often disguises itself as importance. Responding to every email, attending every meeting, and chasing every opportunity might feel productive, but it frequently leads to reactive leadership rather than intentional growth.

Busyness is not effectiveness. Speed can create the illusion of progress while eroding clarity, relationships, and the quality of decisions.

Burnout by Acceleration: Consider a business owner who scaled too fast, launching new services, hiring rapidly, and taking on too many clients. Within a year, revenue was up, but so were client complaints, employee turnover, and accounting errors. Growth outpaced capacity. He looked successful from the outside, but internally, he was exhausted, disconnected, and questioning the entire mission. Why? Because he confused motion with direction and purpose. 

Why Pacing Is Powerful

It Protects Your Priorities. Slowing down gives you room to ask: What matters most right now? It’s how leaders move from reactive to strategic.

It Preserves Relationships. Whether it’s team members, customers, or family, rushing through life usually means leaving people behind. Pace allows you to lead with presence.

It Improves Quality of Thought. Slower decision-making often yields better outcomes. When we breathe, pause, and reflect, we access wisdom, not just instinct.

It Avoids Waste. Rushing leads to rework. You don’t save time by moving fast if it leads to mistakes you must clean up later.

Jesus: Never in a Hurry

In the Gospels, Jesus is never described as rushing. Even when facing urgent needs—a dying child (Mark 5), a grieving family (John 11), or a desperate crowd—Jesus moved with intentional calm.

He never sprinted to meet a need, yet He was always on time. Does his pace communicate something deeper? Perhaps it conveys that peace comes from being aligned with purpose, rather than urgency.

When Lazarus was sick, Jesus waited (John 11:6). Not because He didn’t care, but because He knew that the greater miracle needed room to unfold. 

When we move too fast, we often cut short the opportunity for something greater.

Practical Tips for Pacing Your Business

Establish Margin in Your Schedule – Block time that isn’t spoken for. Use it for reflection, rest, or problem-solving. Don’t schedule every hour.

Set Weekly “No Rush” Hours – Have a day or time where nothing is urgent. Use it to think, listen, or learn. Urgency doesn’t equal importance.

Practice Sabbath Principles – Take one day per week to disconnect entirely. You’ll be more focused and grounded when you return.

Define What Enough Looks Like – Growth is good, but growth without boundaries leads to burnout. Set your targets, and know when you’ve hit “enough” for now.

Lead by Example – Your team watches your pace. If you are frantic, will they be too? If you walk in peace, they’ll learn to trust the process.

Final Thoughts

The wisdom of “slow down to move forward” isn’t just a catchy phrase—it’s a leadership strategy and a spiritual principle. The faster you go, the more likely you are to miss what truly matters.

Jesus never ran, yet He fulfilled the greatest mission in history.

As a business owner, you don’t need to run harder—you need to “walk” wisely. Clarity, not chaos, is what fuels lasting impact.

Today, consider giving yourself permission to slow down. You might find you’re actually getting ahead.

Preface: “Few of us ever test our powers of deduction, except when filling out an income tax form.” — Laurence J. Peter

Understanding the Difference Between Tax Credits & Deductions: What Every Taxpayer Should Know

When thinking about filing taxes, many people hear terms like “tax credit” and “tax deduction” and assume they mean the same thing. While both are valuable tools to reduce your tax bill, they work in different ways and have different impacts on how much you owe. Understanding the difference can help you maximize your tax savings and make informed financial decisions.

What is a Tax Deduction?

A tax deduction reduces your taxable income. In simple terms, deductions lower the amount of income that is subject to tax. The lower your taxable income, the less tax you pay.

Suppose you earn $80,000 in gross income. After itemizing deductions like mortgage interest, charitable contributions, and medical expenses, you claim $15,000 in deductions. Your taxable income would then be reduced to $65,000.

Example of Common Tax Deductions:

• • • Standard Deduction: For 2024, the IRS standard deduction is $14,600 for single filers and $29,200 for married couples filing jointly.
    • Mortgage Interest: You can deduct interest paid on mortgage loans up to a specific limit.
    • State and Local Taxes (SALT): You can deduct up to $10,000 of combined state and local income, property, and sales taxes.
    • Student Loan Interest: Up to $2,500 in interest paid on qualified student loans can be deducted.
    • Business Expenses: Self-employed individuals can deduct ordinary and necessary business expenses.

Deductions reduce your taxable income, which indirectly reduces your tax bill based on your marginal tax rate. The higher your tax bracket, the more valuable deductions become.

What is a Tax Credit?

A tax credit directly reduces your tax liability, dollar-for-dollar. Unlike deductions, which lower your taxable income, credits subtract from the amount of tax you owe.

If you owe $5,000 in federal income tax and you qualify for a $2,000 tax credit, your tax liability drops to $3,000. Tax credits are more powerful than deductions because they apply after your tax has been calculated.

Example of Common Tax Credits:

• • • Child Tax Credit: Up to $2,000 per qualifying child under the age of 17.
    • Earned Income Tax Credit (EITC): Available for low-to-moderate-income workers and families, with credit amounts based on income and family size.
    • American Opportunity Credit: Provides up to $2,500 per eligible student for college expenses.
    • Lifetime Learning Credit: Up to $2,000 per tax return for qualified education expenses.
    • Residential Energy Credits: Credits for installing solar panels or energy-efficient improvements.

Refundable vs. Nonrefundable Credits:

• • • Nonrefundable Credits: Can reduce your tax bill to zero, but not below zero.
    • Refundable Credits: Can not only reduce your tax liability to zero but also result in a refund beyond the amount of tax you paid.

For example, if you owe $1,000 in taxes and qualify for a $1,500 refundable tax credit, you would receive a $500 refund.

Tax credits provide a dollar-for-dollar reduction in your tax bill, making them generally more valuable than deductions of the same amount.

Credits vs. Deductions: A Simple Comparison

Feature	Tax Deduction	Tax Credit
Effect	Reduces taxable income	Directly reduces tax owed
Example	$10,000 deduction reduces taxable income to a lower tax bracket	$2,000 credit reduces tax bill by $2,000
Value	Depends on your tax bracket	Full dollar-for-dollar reduction
Types	Standard, Itemized, Business Expenses	Refundable, Nonrefundable (Child Tax, EITC)

Knowing the difference between tax credits and deductions can help you plan better during tax season. For instance, a $1,000 tax deduction for someone in the 24% tax bracket reduces tax liability by $240, whereas a $1,000 tax credit reduces the tax owed by the full $1,000.

Business owners, families, and students often qualify for a mix of deductions and credits. Understanding how each one impacts your return can help you work with your CPA to strategize your tax planning.

Both tax deductions and tax credits are essential tools for lowering your tax costs, but they operate in distinct ways. Deductions reduce the amount of income you are taxed on, while credits reduce the actual tax you owe. By understanding this difference and applying it effectively, you can make smarter financial decisions and potentially save thousands on your tax return.

When in doubt, consult with a tax professional to ensure you’re taking full advantage of both deductions and credits available to you.

Preface: “A tax loophole is something that benefits the other guy. If it benefits you, it is tax reform.” – Russell B. Long

Proposed 2025 Tax Reform

As of May 2025, President Donald Trump has introduced a comprehensive tax reform package that proposes significant changes to the U.S. tax code. These changes aim to extend and modify provisions from the 2017 Tax Cuts and Jobs Act (TCJA), with implications for individuals, businesses, and the broader economy. Following is a summarized overview of the key components of the proposed legislation. The TCJA provisions affecting individual taxpayers are set to expire at the end of 2025. President Trump proposes making these provisions permanent, including:

• • • Lower individual income tax rates
    • Increased standard deductions
    • Expanded child tax credits

This extension aims to provide continued tax relief to middle-income families and simplify the tax filing process.

In a departure from traditional Republican tax policy, the proposal includes raising the top individual income tax rate from 37% to 39.6% for individuals earning over $2.5 million and joint filers over $5 million annually. This measure is intended to generate additional revenue and address concerns about income inequality. 

With good news for retirees, the plan seeks to exempt certain income types from federal taxation, including:

• • • Social Security benefits
    • Tips
    • Overtime pay

These exemptions aim to increase disposable income for retirees and hourly workers, potentially boosting consumer spending.

The proposal targets the elimination of the carried interest provision, which allows investment managers to pay capital gains tax rates on certain income instead of higher ordinary income tax rates. Removing this loophole is projected to increase tax revenues and promote fairness in the tax system. 

The $10,000 cap on state and local tax (SALT) deductions, implemented under the TCJA, has been a point of contention, particularly in high-tax states like California and New York. The new proposal considers raising or eliminating this cap to alleviate the tax burden on affected taxpayers. 

While the corporate tax rate was reduced to 21% under the TCJA, the current proposal includes further reforms, such as implementing a 28.5% deduction for domestic manufacturing activities, effectively lowering the tax rate for qualifying businesses

These measures aim to stimulate domestic production and job creation.

The proposed tax cuts are estimated to reduce federal revenue by $4.5 trillion over the next decade. To offset this, the administration suggests:

• • • Reducing spending on programs like Medicaid and nutrition assistance
    • Eliminating certain environmental tax credits

These proposed tax cuts have faced opposition from moderate Republicans concerned about the potential impact on vulnerable populations. 

The administration aims to pass the tax reform package before Memorial Day. However, internal divisions within the Republican Party and debates over spending offsets present challenges to the bill’s passage. The outcome will significantly influence the U.S. fiscal landscape and economic policy direction.

President Trump’s 2025 tax reform proposal represents a significant shift in U.S. tax policy, with potential benefits and challenges. Taxpayers, businesses, and policymakers must closely monitor developments to understand the implications and prepare for possible changes.

Preface: “The value of an idea lies in the using of it.” — Thomas Edison

What Is a Depreciation Schedule and Why Does Your Accountant Keep Insisting You Need One?

If you own a business, farm, or rental property, you probably know that you can take a significant business deduction for something called “depreciation.” You likely realize that depreciation is your recovery of the cost of business assets and that it can take a number of years to fully recover such costs. In other words, the tax code lets you deduct the cost of assets placed in service in your business, farm, or rental property, but it doesn’t always let you deduct the entire amount in a single year.

So far, so good. You may have also heard of a “depreciation schedule,” and this may have sounded a bit confusing. Have no fear, it is not really that complicated. A depreciation schedule is simply a list of your business assets that helps to explain what depreciation has already been taken on each asset and how much depreciation remains to be taken on each one.

Each line in a depreciation schedule should include five data points:

• • A description of the asset.
  • The date the asset was placed in service.
  • The cost basis, including all sales tax, fees, and other transaction costs.
  • A useful life. The IRS issues guidelines on lifetimes of depreciable assets. Your accountant should be able to determine for you the useful life of a new asset. If you are hiring a new accountant, the new accountant needs to know what life the old accountant used.
  • A method, which is to say, how much is being recovered each year over the useful life of the asset. In some cases, the entire cost may be recovered in the first year under section 179. For real estate and amortized costs, straight-line depreciation must be used, which is to say the same amount is recovered each year over the life of the asset. In most other cases, some form of accelerated depreciation is used. As with the useful life, any accountant should be able to determine this for you for any new asset, but a new accountant needs to know what method the old accountant used.

EXAMPLE: Say you spent $15,000 on an improvement to your rental property in June of this year. This bit of new information becomes a new line your depreciation schedule that says:

Renovation – July 1st, $15,000

Your accountant will know that improvements have a 15-year life and are taken using a straight line method. The amount of remaining depreciation to be recovered will then be decreased in the schedule by $1,000 each year until it reaches zero 15 years from now.

If you have a business, or multiple businesses, with a large number of assets placed in service in different years using different lifetimes and methods, this can get a little involved. But in principle, each line in the schedule is just a record of how deprecation has been taken on a particular asset.

Why Is My Accountant Asking Me for a Depreciation Schedule?

If you are starting a new business, your accountant should create a new depreciation schedule for that business and update it annually. If you are hiring a new accountant to handle an existing business, that accountant should ask you for the depreciation schedule prepared by the previous accountant. Business clients sometimes feel awkward about this kind of request, either because they are not sure what they are being asked for or because they don’t want to have to tell their old accountant they are planning to switch accountants.

There is no reason to feel at a loss. It is entirely normal for businesses to change accountants in the course of their business life. Accountants are entirely used to this. If you paid an accountant in a prior year to prepare your tax returns and you had depreciable property, then the accountant should have prepared a depreciation schedule to be able to correctly figure the depreciation in a way acceptable to the IRS. All documents prepared by the accountant, including the depreciation schedule, are then yours since you paid for them, and you are entirely within your rights to ask for copies.

The schedule tells the new accountant how much depreciation is left to be recovered in future years. You are entitled to recover the entire amount over the life of the asset, but at the same time, you do not want to invite problems by continuing to depreciate after the entire cost has already been recovered. This can be especially tricky if accelerated depreciation, bonus depreciation, or section 179 depreciation have been taken in prior years.

Having a depreciation schedule is also very important in the event that you sell any business assets. This is because the amount of depreciation taken in prior years must sometimes be added back (“recaptured”) when computing your gain on the sale.

Can’t You Just Compute Your Own Depreciation Schedule from Last Year’s Numbers?

In some simple cases, it may be possible to reconstruct a missing depreciation schedule from the previous year or several years’ worth of returns. This will still require asking you, the business owner, many questions about the descriptions of the assets and their purchase dates. The tax forms themselves only contain the annual totals or are broken down only by useful life or type of depreciation (MACRS, section 179, or bonus).

It might help to compare a depreciation schedule to a prison roster. When a group of prisoners is transferred from one prison to another, the new warden needs to be told how long a sentence each prisoner is serving, when he began serving that sentence, and other important information, such as whether the prisoner has had his sentence reduced for good behavior, etc.

Remember the States

Many state laws governing depreciation differ from federal law. So, as you can imagine, depreciation taken on state tax returns may not be the same as depreciation taken on your federal return. So it is a very good idea to keep a state depreciation schedule in addition to a federal one. Even if the numbers are the same in some cases, keeping separate federal and state schedules makes this explicit.