The Small Business Safari
Have you ever sat there and wondered "What am I doing here stuck in the concrete zoo of the corporate world?" Are you itching to get out? Chris Lalomia and his co-host Alan Wyatt traverse the jungle of entrepreneurship. Together they share their stories and help you explore the wild world of SCALING your business. With many years of owning their own small businesses, they love to give insight to the aspiring entrepreneur. So, are you ready to make the jump?
The Small Business Safari
No You Cannot Deduct Your Cat | Melissa Kennebrew
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TITLE: No You Cannot Deduct Your Cat | Melissa Kennebrew
What if the problem isn’t your taxes—but the system you’re using to manage money?
Summary:
Melissa Kennebrew of MBK Financials joins the Safari to break down why so many small business owners feel blindsided at tax time—and how to fix it before the next surprise bill hits.
Melissa works with high-net-worth clients and growing small businesses that are tired of scrambling at year-end and guessing their way through deductions, bookkeeping, and quarterly estimates. In this episode, we unpack the difference between tax avoidance (legal) and tax evasion (illegal), why clean records matter more than last-minute “write-off shopping,” and the common mistakes both new and established businesses make.
We also dive into the Profit First system, a simple cash flow framework that helps owners manage money the way they actually think—by looking at bank balances. Melissa explains how separating revenue into operating, owner pay, tax, and profit accounts can eliminate stress, build predictability, and help owners finally reward themselves for the business they’re building.
Along the way we tackle common questions around deductions, home office fears, startup losses, and the simple habits that keep businesses proactive instead of reactive.
If you want better cash flow, smarter tax planning, and fewer financial surprises, this episode is packed with practical tips you can use immediately.
🎥 Watch the full episode on YouTube:
https://www.youtube.com/@TheSmallBusinessSafari
💡 GOLD NUGGETS
• The difference between tax avoidance and tax evasion—and why intent matters
• Why successful businesses still get surprised by tax bills
• The biggest bookkeeping mistakes new businesses make
• How the Profit First system simplifies cash flow management
• Why “write-off shopping” at year end is usually the wrong strategy
• Clearing up myths about home office deductions and startup losses
🔗 Guest Links
• Website: https://mbkfinancials.com
• LinkedIn: https://www.linkedin.com/in/melissakennebrew/
• Instagram: MBK Financials
- biascorp.com/ (BIAS Corp)
🌍 Follow The Small Business Safari
• Instagram | @smallbusinesssafaripodcast
• LinkedIn | https://www.linkedin.com/in/chrislalomia/
• Website | https://chrislalomia.com
Thanks to our sponsor Smart Hire Solutions LLC!
Cold Open On Write-Offs
SPEAKER_03That's pretty cool. I mean, I mean again that does give you a lot of peace of mind and what you do. But I think everybody out there is probably asking this question. You ready, Alan? Yeah. What can I write off?
SPEAKER_04What can I write off?
SPEAKER_03Or what are you know what are the do's and don'ts? What are some easy ones that we miss? What are some ones that we do that we probably shouldn't be doing?
SPEAKER_00So um for the record, pets are not dependents.
SPEAKER_03Oh, that's awesome.
SPEAKER_00Pets are not employees. And I'm a pet owner.
SPEAKER_03So that that is I don't own pets, but I have beanie babies. Uh can I count them? No.
SPEAKER_02Man, if she said you could, how many cats would you have in the basement?
SPEAKER_03Oh, that reminds me of my all-time worst client, 42 cats in this house. Oh my god. 42.
SPEAKER_00Okay. So if I ever get to 42, Chris Allen, I implore you to save me.
SPEAKER_01Intervention?
Welcome And Business Highs Lows
SPEAKER_00There's definitely a problem.
SPEAKER_03Welcome to the Small Business Safari, where I help guide you to avoid those traps, pitfalls, and dangers that lurk when navigating the wild world of small business ownership. I'll share those gold nuggets of information and invite guests to help accelerate your extent to that mountaintop of success. It's Jungle out there, and I want to help you diverse to the levels of owning your own business that can get you bogged down and distract you from hitting your own personal and professional goals. So trap in Adventure Team and let's take a ride to the Safari. Oh my god, Alan, we gotta get started, get ready to rock and roll. We gotta help people get better at business. We gotta go through the highs, the lows, the ups, the downs. Just put out my newsletter if you're not on that. You want to get it somebody on that. I love my video that I put out there. Uh but uh I haven't read it yet. All right, but this one's pretty good. Uh Mia did a good job helping me out get that message out there because we uh, you know, I usually take the four episodes from the month prior and kind of weave together uh what what I took away from it. And this one was uh well, the first episode was Chris kicking down a door, and um and unfortunately that employee's no longer with me. Uh, and that was a low, as it were. Yes, very low. Especially for the door. Uh the door, and um, and now is highlighted saying Chris did this. Um, thank you to the team at the office uh for letting everybody know what I did. Thank you very much. Then we talked about some highs, and that's what happens. You know, you can't be too high or too low when you're running a business. And uh frankly, well when I go through the lows, they're low. Uh, and I gotta really work myself hard to make sure I stay in the middle. You know what I'm saying? And it's hard, man, especially for me.
SPEAKER_02No, I know. You're a mercurial guy. Part of what makes you you, though.
SPEAKER_03Look at you in that 25 cent word again, Mercurial.
SPEAKER_02I got I got it out before the bourbon kicked in because it won't come out the same.
SPEAKER_03Yeah, it never's the same when the bourbon starts kicking in, guys. We love this show. I love doing this. We've been doing this now for over four and a half years, and have somebody asked me on a um uh in a meeting uh that I I was at and they came up and asked me about the podcast. Hey, I just started listening to it. I'm like, oh yeah, we've been doing it for a while. Don't go back to listen to those first couple though. I said, No, I'm I'm not, I'm kidding. But we did do it with basically um my cell phone in the middle of the desk, uh, and that's how we started. So there we go. So now look at us. We've got all kinds of fancy stuff on. What do you think of that, Melissa?
SPEAKER_00We've come a very long way.
SPEAKER_03I think we have and I'm gonna introduce our guest in a minute, but not until I tell you, uh, as you guys may or may not know, I do a radio show uh here in Atlanta highlighting great contractors for home uh homeowners. And I met these ladies, and you know, my son, fluent in Spanish, uh, very excited. She is uh she was a uh Hispanic lady, and um I said, Yeah, got your last name perfect. We bring it in, and I say, Welcome to the All Four Seasons home show. Get it going, thanks, Dan, our sponsor, Chris. I'm your favorite handyman. And here is, and I just killed it. I mean, it wasn't even close, not even the right building. Horrible, just totally threw it out. Thank God it was taped, so they uh were able to rewind, and I just called her by her first name from then on out.
SPEAKER_02And uh she's a real shoot it, I did.
SPEAKER_03Oh, okay. Yeah, so we don't do it live, uh, thank God. But it was um, so she was one nervous, uh, two, uh, she was ready to go. It was on point, and I just killed her name. And killing a Latina's name is Melissa gave me that look. Acceptable on thank you, thank you. If I didn't feel any worse, I feel worse now. Thank you, Melissa. So I'll I will I will rock this name. You ready?
SPEAKER_02Yeah, I I try to incept you in a way that would mess it up. And that's what started the whole tour.
Meeting Melissa Through BNI
SPEAKER_03You can't do it. I know you're you're trying to put that in there, but not this guy, not the seasoned professional on the podcast, Mike. Making it happen, making it rock. Here we are, K106. No, we're on the small business safari, so let's get going. We have Melissa Kenneber on here from MBK Financials, MBK Financials. And um, we've talked about this. I put this in the book. Uh B and I was a big part of how I started my business and grew it uh through networking. I have a whole uh whole section dedicated to my book from The Zoo to the Wild talking about this. Even got Ivan Meisner himself from B and I to uh put it uh put a forward in the uh book, and uh that was pretty cool.
SPEAKER_02Uh he said he was a little leery at first, but you notice what he's doing, he's already dropped the radio show. He's he's dropped the book. Pretty soon it's gonna be you know when I was president and Nary.
SPEAKER_03Thank you. You know, I mean let me continue to name dropy aggrandise. Go on. That's what I do. I am I have delusions of grandeur, my friends. So um, so I I believe in B and I. So I went and sub for one of my guys at BI. And wait to get in with the people again, Chris. That's what I think that's exactly what I did. I exact that's exactly what I said. I said, you know what? I'm gonna go back in and be a man of the people because you can't have a president of Neri or the United States, whatever, we're about the same. Um, you've got to be in touch with the people, right?
SPEAKER_02Alan, that's kiss my ring. I want all these people to kiss my ring.
SPEAKER_03So uh I've I kept I kept I kept the crown and the scepter, uh, and I still have the robe. I want everybody thinking right now how James Brown used to come on out and sing, and that's exactly how I rolled it with the robe and the head. I'm going with that. No. Okay, go on. I I did, I came on out. So so I did. I went back, I was a man of the people, get in the B and I. They had uh a nice little uh breakfast brought to you by one of the other B and I members, and it was a great breakfast. But what happens in every BNI is somebody gets to highlight themselves and talk for 10 minutes. And that day we had Melissa speak. And I sat back and you know, I was kind of surveying the audience and wasn't even thinking about a podcast guest, but when she got done talking, I was like, we got to get her on here, man, because she was talking to people, pointing to people, talking to this lady, and the lady's like, You're right. Yeah, no, I shouldn't have done that. Yep, you're right. He looked at another guy, said he goes, Yeah, you're right. I know I shouldn't have done that. Yes, you fixed it. And I was like, Oh my gosh, I gotta get her on to help other people get the good word of MBK financials out. But Melissa, welcome to the show.
SPEAKER_00Thank you so much, Chris. I'm so excited to be here. Cheers. Cheers.
SPEAKER_03Cheers. We're drinking out of our small business safari glasses.
Growing Up In Duluth
SPEAKER_00Thank you for having me on the podcast. I am just excited to be here with you all today.
SPEAKER_03So let's uh let's rewind for a little bit because you said something. Um, you said, hey, when I came to your house, I didn't realize you were in this subdivision. And I used to be here a lot when I was a kid. So so you were born and raised here.
SPEAKER_00Yes. So actually three generations. Myself, my dad, my grandmother all grew up in Duluth, Johns Creek, what you know, however you want to call it these days. Um, but my family is from here. And when I was young, um, a few short years ago, um, one of my good friends moved into this neighborhood and we spent so much time together. And I remember when she moved here because we lived down the street from each other before. So we had to drive all the way over from Duluth proper over to this side of town. But I just I loved it over here. I was very comfortable coming in and felt uh good to be back in this area.
SPEAKER_03Well, good. We can bring we're bringing her back home, Alan. Yeah. Although she's been here way longer than I have, clearly. And definitely a lot longer than you. Uh in fact, when she said she was a kid, I'm pretty sure I probably was one of the old guys yelling at her, going, Hey kid, get off the yard, get out there, get out there, get off my grass, kid.
SPEAKER_00Yeah, do the kids still go through with uh golf carts?
SPEAKER_03They do. We we still I got it, it's all teed up in the in the garage right now. Now it's the the old man arriving through the golf carts. But yes, I can show you the war wounds of what my kids did to our golf cart. Well, I got I've got a I got a low rider. Uh a low rider. Uh, you know how they have the tops over the golf carts. We all know that. Well, this one's been bent back. So when you get in, a tall gentleman like yourself, Alan, would probably hit it. But I got the low rider.
SPEAKER_02Were they were they trying to make the garage door? Is that you know, as it was uh closing? Well, I always Indiana Jones in a golf cart.
SPEAKER_03Uh so they think that the statute of limitations are over. They're 27 and 24 now. And I was uh last year yelling at my son or yelling at my daughter saying it was you. And she goes, She looked at uh my son and said, You better come clean. And he goes, It was really me, Dad. I was like, It was you all these years, all these years. It was him who took it out. Yeah. No, he tried to go into a tree on the golf course that he shouldn't be at night, uh, trying to go watch the fireworks. Yep, uh, not golfing. Yep. So bad kids. They think they had it so hard in here. I I love telling them that too. Is that they're like, Oh, dad, life's so hard. I'm like, Yeah, I know. You should write the book inside the gates, it's so hard.
SPEAKER_00Inside the gates. Yes, I will admit, every time I was on a golf court right riding through this neighborhood, it was never for golf.
SPEAKER_03Yeah, I'm I'm sure, I'm sure you were doing this, and you probably came over here and you probably trick-or-treated here, didn't you? That was my best ever. I loved doing that. I love taking around for that. So it was so good. Um, because uh back in the day they had a hot dog guy, they had a full candy bar person, and they had somebody who owned a uh store, a toy store, and gave away toys. And I was like, man, I want to get on this action.
SPEAKER_00That's nice.
SPEAKER_03Yeah, that was cool.
SPEAKER_02It's funny how the word spreads with the kids, like who's giving out the whole candy bars? Yeah, yeah.
From Corporate Finance To Taxes
SPEAKER_03Yes, right? All right, we got to get into this, man. Let's help everybody, let's get after this. So, how'd you get into this business?
SPEAKER_00Um, great question. Um, no, no, no. Yes, it is.
SPEAKER_03No, no, no.
SPEAKER_02It is we keep count. It is not a good question. We do have a competition. There it was a decent question.
SPEAKER_00Some good ones coming.
SPEAKER_02Okay, good.
SPEAKER_00So, how did I get into this? So I spent um the first part of my career in finance and accounting and became this liaison between the number crunchers and the technical people. And I realized that I had a very good knack for communicating between different groups. And as you can imagine, in the tax space, um, we are decoding some pretty heavy information that most individual taxpayers and small business owners really don't understand. So while I was working my corporate job on the side, I said, I need to help people with tax. And client number one was my parents. My parents had every scenario you could imagine from W-2 income, retirement income, rental income, investment income, and tax time was pretty stressful for them. And so I said, Hey, baby, yeah, yeah.
SPEAKER_03It is stressful.
SPEAKER_00It is stressful. So I said, Hey, let me uh let me do your taxes. And my dad looked like this is the worst idea you've ever had. And my mom was like, Yeah, baby girl, go for it. And so um I really taught myself on my own initially. Now, yes, I have multiple degrees and many letters behind my name, but this space is something that, to be very honest with you, each individual's tax profile is different. And so the best way to learn is experience.
SPEAKER_02Is practicing on your parents.
SPEAKER_03How about that? So practice on your parents. There is absolutely no way I could have ever done my dad's taxes, which by the way, he did he volunteers and does uh retirees taxes as a retiree. But yeah, I hate taxes. So all right, so you're working the side hustle on the taxes, started with mom and dad, but you're your face went so dark when you said that. What's that?
SPEAKER_02Just like you just crunched up like a little kid. I hate taxes.
SPEAKER_03I do hate taxes. I mean, you know what? I am Mikey likes it. No, Mikey doesn't like it. I hate all of it, everything about it. I am the first guy that says who says extension, extension, extension, extension, an extension. He's like, now you're done. I'm like, damn it. So you're doing the corporate gig, starting the side hustle, and figured out maybe I got a knack. And so you did something that we talk about here quite a bit, uh, because Al and I both did it too. And you took that leap from getting the consistent paycheck every two weeks, the 401k, taking out, getting the match, having somebody pay for your healthcare. And you said, you know what? I'm gonna go out there and start my own biz and become my own person.
SPEAKER_00Yes, I said, I hate myself. Um, clearly, this is why I should go do this. No, I'm just kidding. But yes, we left unlimited PTO. I'm left an amazing career.
SPEAKER_02That's when she said she hated herself.
SPEAKER_03Bingo. Yeah. She goes, No, I'm just kidding. I'm like, nah, trust me, it's it's all right. We we know it's just us here. We know what I'm talking about.
SPEAKER_00And I did, I really um spiritually felt like God called me to go out on my own. And um, for for uh record keeping purposes, the prior year, my side hustle had not paid me enough to pay one month's uh worth of expenses, certainly not 12, but I said, let's do it anyway. Leap of faith. Leap of faith. So um January 2021, I went on my own, full time into business. And May of 2021, I joined BI because I was like, uh, where are the clients?
SPEAKER_03Hey, uh shingles open, you're sitting in the office, you're like, I'm here, I'm right here, I'm right here. Shingles out there on the street. Well, hey, how come you're not all streaming in? Isn't that funny how business just doesn't come to you like you think it's gonna, Alan? Tell me about it. All right.
SPEAKER_00So that was a little uh that was a little uh disappointing at first, but then things started to pick up.
Who MBK Helps And How
SPEAKER_03So here you are. Uh you you it tell us a little bit more. We talked about tax, but tell us what you really are working with uh with the small business people and what your specialty is.
SPEAKER_00Absolutely. So, because of the way my business started, I still absolutely help um individuals who just need their taxes filed. Hey, it's tax time. Um, I just need my taxes filed. Let's get those pushed out the door. And we still help those individuals, but now we've moved into a space where our core base is either high net worth individuals who need tax planning. Um, we're meeting multiple times throughout the year, typically in a collaborative manner with their financial advisor and potentially their attorney, just depends on what their needs are. And the sweet spot, small businesses. So, small businesses, as you can imagine, that day that you put the shingle on the door, your tax needs may not be that complex. Um, but as time goes on, you do the right things, you meet the right people. Now you may need bookkeeping services, you may need um some estimate planning, some cash flow planning. Um, we also do profit first. If you're familiar with the profit first methodology, Michael, uh Mike McAllowitz, right? I have like a I go to the Profit First uh conference each year, so I get pictures with him each year.
SPEAKER_03You do? All right. Well, you know what? Put a word in for us because I haven't reached out to him yet, but I want to get him on the pod.
SPEAKER_00Oh.
SPEAKER_03Done.
SPEAKER_00Done.
SPEAKER_03I know. We'll get him.
SPEAKER_00I got you.
SPEAKER_03All right. We got we're in.
SPEAKER_02Are you excited about that, Alan? I'm just more curious uh how she can help you write off all your Vegas trips.
SPEAKER_03We're going to that. Okay, we're we'll talk offline. Or really, right now. Yeah, yeah. Yeah, actually, let me get another little shot. All right, so you kept saying uh us, us, us, and I love that because we said 21 side hustled, and then I'm gonna make this thing a full gig. You are not a solopreneur.
SPEAKER_00I am not a solopreneur. Thank you so much for asking that question. Um, and that that is an adjustment, right? Yes, he's good at this. Um see that so as you can imagine, we'll get you everywhere. Everywhere.
SPEAKER_03Um I waited up for her up, right. All right, Alan, you waited. All right, you get something, are you? You you get one. We're but still two to one.
SPEAKER_00Taxes and finance are one of the you know most intimate parts of your life. And um, while I would love to pretend that I am just the queen of all things tax and finance, I have an amazing team um standing beside me that help me get things done, whether it be from the office management. Our office isn't far from here, um, right in Duluth. Um, whether it be from social media, whether it be from client success, um, we have a CPA on the team, we have an enrolled agent on the team, and we have people that really care. Um, one of the most important aspects of being a part of the MBK team is caring about our clients. So often people go into an accountant's office and it's like, yeah, check a box, yep, here's your results. We really care um for our clients. Um, I have shed more tears than I would like to admit over tax results. Um here and there, but I think it's important for clients to know that block this out, Chris.
SPEAKER_02I know this is I'd rather you know be involved in this conversation, but then just not remember the dark times.
SPEAKER_03I know, I know. You know, so uh I I'll tell you, but the best one, which is why I'm sitting here today, it started uh 18 years later, is I got my big boy job. Um, I was in consulting, and uh, Alan's heard this story, but I was in consulting, I was on my way to that million-dollar guy, million-dollar partner at Accenture, and I got uh poached from a local bank, regional bank here called Sun Trust, and she said, Name your number, and I named uh a number, and she says, I'll just add 10% to that. And then I didn't realize that you also get these other things like stock options and restricted stock, and then oh, by the way, the 401k, and then the a highly compensated that I get all this other stuff I had no idea what was going on. So I just said, Okay, great. So I, you know, I joined and uh actually I squealed my wheels home 21 miles uh door to door, and I probably did it in about 21 minutes. And uh this is Atlanta, baby. I can run it. Um, but but yeah, that's right, no cops. Um, but when that first year hit after it was done, I walked in and uh my my tax guy says, CPA says, You owe this much. I'm like, I I don't have that much. He goes, I said, Well, what do rich people do? He goes, They do what you're doing. I'm like, I'm not a rich guy. He goes, but you won't even want to think about starting your own business. I was like, ah so give us some advice. All right, so actually, let's go back to this. So your team can help people, your sweet spot, high net worth clients, small business. I can I know that's where your heart's at because uh I saw you speak and talk about it, Epi and I. And so many people in there you've touched, uh, you could tell. So what what do you help people with when they come to you? What what are you usually seeing?
SPEAKER_00So I see and it's funny, um, two main issues, right? I would say uh the very first one is either a new business who doesn't yet have the revenue they need to make things happen, right? If you just start a business and let's say you hit six figures, which you know, in this um society, six figures is like this magical number. And people don't realize that hitting six figures in small business means you have a five-digit tax bill that you're typically not prepared for. And so now you've made it, but you haven't. Where's the money? Just like you, the conversation you had with your CPA. Well, how am I supposed to pay this? And so what I often find is that small businesses who are just starting, they don't know what to write off, they don't have good record keeping, they don't have good document retention. So the goal there is to make sure that they're writing off as much as possible, and we're limiting their tax liability as best we can. That's one major bucket.
SPEAKER_03So we're not talking, and I love this. Uh, there's phrases too. Uh and I'll uh you'll you'll tell me the right ones. And so I'll pay them them. That's the government, Alan. I'll pay them what what I owe them, but I don't want to pay them any more than I owe them. So I'm not trying to cheat them. But so I know there's tax avoidance, is the right word?
SPEAKER_00Tax evasion is illegal. Tax avoidance is 100% legal.
SPEAKER_03That's what she said at B and I. I remember that's right. And I remember see? I was keying her up for her tagline. Tax avoidance, not tax evasion.
SPEAKER_00All right, because we want to stay within our legal boundaries.
SPEAKER_03Bastards take all my money. All right.
SPEAKER_00And then that second bucket is those that have made the money, right? And you can get, you can hit, you can hit the 500K plateau, you can hit the$2 million plateau. These are regular plateaus that small business owners see. Um, but are they prepared? So the cash flow feels like it's there. They're in a good place, but are they prepared when tax time comes? And that's when we start looking at cash flow management and a tool such as Profit First to ensure that we are prepared when tax time comes and we're not spending money unnecessarily, you know, the mad dash the last week of December to try to cram in expenses. Or I have some clients who that is new truck. Yes. Who bought a truck?
SPEAKER_03Uh maybe one of us.
SPEAKER_00Maybe both. Two. It's totally fine. Totally understand. But once again, we want to make prepared decisions so that we're not acting reactively. We're proactive in our decisions.
Profit First Explained Simply
SPEAKER_03So uh we've mentioned profit first. Uh just give us a quick overview of what that is and what that discipline brings to you.
SPEAKER_00Yeah. So um what I love about profit first is um profit first works how a business owner works. So typically a business owner uh gets up, opens their phone, and checks their bank account. What can I spend? What can I do today? What decisions can I make based on what's in my bank account? Versus on the 10th of the month when I'm issuing financial statements, cash flow, profit and loss, balance sheet, and I send it over to a business owner and they don't look at it ever. So we are moving away from um just pure financial statement management of businesses. And you've been in consulting just like I have. Those statements are important. I am not saying that small business owners shouldn't get those statements, shouldn't understand them. But I also understand that when you're running a business, you're running the business. So let's be able to look at our bank account and easily be able to see I have this much in my operating account, I have this much for taxes already set aside. I have this much set aside in my profit account, and I can take my family on vacation this summer wherever I want to go. So profit first is a methodology for cash flow management, but it's using a bank balance view versus a financial statement view.
A Profit First Vacation Win
SPEAKER_03Well said. That is a great summary. I have to, you know what? That was a great comment. She gets one now. So you're still winning. That's right. I just want to say it's 211. Uh, but but I gave her one. All right. You're still magnanimous. That's right. I that's how I go. So um he's a benevolent dictator. That's right. Continue. Can we go back? Can I go back to our whatever you want, buddy? All right, thank you. Um, let me tell you a story, I'll about Melissa. No, I'm kidding. All right, so um, as you work with them, uh, you talked about how these guys uh get in, start working with you, don't have a real good feel for what's going on. Give us one of those best turnaround stories. Or wow, I am this is one where mama's a little proud of her little pup.
SPEAKER_00Absolutely. Um, and and I I wish I wish there was one standout story. We have some really amazing experiences with people, um, not just from a profit first perspective, but really just a preparedness perspective. But one of my favorite stories is a client whom we implemented Profit First for. We started doing these transfers, which now pretty much all of this process is automated. But basically, based on your income, there's an allocation percentage based on where you are today and where you're trying to go, for how much goes into operating expense, owner's compensation, taxes, and profit. And about seven months into this program, my client calls me up and she's like, Guess what I did? And I was like, What? She's like, I just booked my family a vacation to Aruba. And I was like, Can I go?
SPEAKER_03Right. You're so you're inviting me? That's what I would have been. Again, not that it's always all about Chris, but I but maybe a little bit about Melissa. I think I might have met my match, Alan.
SPEAKER_00Two peas in a pie. But she said, no, I used my profit account. The money is there. I don't have to wonder when I can take my family on vacation. What can I afford? The money is sitting there. And I was like, and that's what it's for. And we have not had a situation with this particular client when tax time comes, there are no tiers. Yes, this is the number, but check this account ending in one, two, three. The money is sitting there, ready and waiting.
Write-Off Rules And Real Limits
SPEAKER_03That's pretty cool. I mean, I mean, again, that does give you a lot of peace of mind and what you do. But I think everybody out there is probably asking this question. You ready, Ellen? Yeah. What can I write off?
SPEAKER_04What can I write off?
SPEAKER_03What or what are you know, what are the do's and don'ts? What are some easy ones that we miss? What are some ones that we do that we probably shouldn't be doing?
SPEAKER_00So, um, for the record, pets are not dependents.
SPEAKER_03Oh, that's awesome.
SPEAKER_00Pets are not employees. And I'm a pet owner, so that that is I don't own pets, but I have beanie babies.
SPEAKER_03Uh, can I count them?
SPEAKER_02No. Man, if she said you could, how many cats would you have in the basement?
SPEAKER_03Uh, that reminds me of my all-time worst client, 42 cats in this house. Oh my god. 42.
SPEAKER_00Okay. So if I ever get to 42, Chris Allen, I implore you to save me.
SPEAKER_01Intervention?
SPEAKER_00I there's there's definitely a problem. Um, so I get that question a lot. So I always start there about uh security animals and all these things as it relates to pets. We we should not lean in that space.
SPEAKER_03All right, so pets no, so I will not be getting any pets.
SPEAKER_00Um what what we should be doing, what we should be doing as well, business owners, is think about the aspects of our life that truly end up related to our business that we have not yet considered. So oftentimes you will see business owners go and buy fancy toys to try to alleviate a tax liability when all you're doing is moving dollars from a tax bucket to a toy bucket. What I would ask is what parts of your life should be a part of your business that aren't?
SPEAKER_03Is it jet ski is a jet skin considered a personal uh like it helps me meditate better? No, that isn't that would be a team.
SPEAKER_00But I still feel like we're reaching a bit.
SPEAKER_03Um it's kind of a team building tool, right? Don't you think? It is because the more I'm out there by myself, the better is it being working. But but a pontoon boat, I guess.
SPEAKER_00But seriously, Alan and Chris, you'll you'll lament this having been in the consulting world because so was I. Um, you may recall the number of times your organization went on a conference, a trip, a bonus um acknowledgement for things that were done in the organization. And those are things that quite honestly, I think more small business owners need to take advantage of. Whether it be um doing opportunities for engagement and education with clients, um, we don't necessarily have to bring folks to our backyard to engage with them. We can take them to the coast. We can to the writs. We can take them to the writs.
SPEAKER_03How about how about if I go to the writs and they all zoom into it?
SPEAKER_02What if you and what if what if you invite everybody to the Ritz, but they don't come for some reason? It can you still write that up?
SPEAKER_00The intent is there.
SPEAKER_03Ooh, now we're onto something. Hey, good job, Alan. You know what? Two two. Uh 1.5 to two.
SPEAKER_00So if the invitation is stuck in your outbox, uh there's nothing we can't control that piece.
SPEAKER_03I am invited to that party or the wrong writs, you know, maybe the wrong writs. Ritz crackers show up at your house. I thought we were going to the Ritz. I said, no, you're getting Ritz.
SPEAKER_00Yes. But if you are a small business owner, um, this is what I find more often than not. There are so few days that you're not working in your business. So, what parts of your life are really business? Are you really selling? Those are the things you need to be considering when you think lick it write off.
SPEAKER_03All right, let me ask a question because I've been told this for years is that um I have an office, uh, so don't even try to do the home office thing. You have an office. If you do that, that's gonna set you up for an audit, which that one, if I said I hate taxes, let me tell you what I think about audits. Yeah. Thank you, Ellen. So don't do that, right?
SPEAKER_00Do not do that.
SPEAKER_03Yeah.
SPEAKER_00Um, but you have multiple businesses.
SPEAKER_03I do.
SPEAKER_00Does every business have an office?
SPEAKER_02No. Oh, she gave you annoying look. Uh unpack that. Please. When I do it, what is it?
SPEAKER_00I feel like I'm in your podcast office now.
SPEAKER_02You are.
SPEAKER_03That's in the other business, Alan.
SPEAKER_02But that still, I mean, doesn't you're saying it triggers an audit if you have a home office? That's what I've heard.
SPEAKER_00Um, the home office potential audit is if you also have a physical office for your business. So you have to have a dedicated office space for your business, but nothing precludes you from having multiple businesses.
SPEAKER_03Well, I do have multiple businesses, as we've we've yeah.
SPEAKER_02So you do it. So in other words, the office safari is here. This would be the office.
SPEAKER_03Yeah, and actually, I hadn't even thought about it. Uh as we uh well, I'll bring it up. Uh, you know, as we've been doing this for four and a half years, Alan said, Why are we doing this? I said, Because I love getting together with you and drinking. Um, but uh which is true, but I wanted to build a community, but with that community, eventually I want to be able to consult and coach with. Um, so here we are. I'm getting ready to start that. Uh here we are in the beginning of 26. By the end of 26, I probably should yeah, I'll I expect to start building up clientele uh to do some coaching. So I will take that uh LLC that I had parked for a while. Uh because right now the small business safari is creating the exact total of minus bourbon, uh, whatever that is, and minus podcast production, um, with very little sponsorship. Although we do have a sponsor, Alan, and it has helped.
SPEAKER_02Uh, and that's we've done a lot of great things out there, and we have connected a lot of great people.
SPEAKER_03In fact, we've even got a guy a date. I mean, we've we've I mean that's pretty cool on a podcast about this.
SPEAKER_02Sold a franchise, got a guy a date. I mean, all kinds of good stuff.
SPEAKER_03We've sold a franchise, got a guy a date, connected another guy with a business opportunity across the country. I'm sorry, across the pond from Australia. Oh, wow. To here. So, yeah, we've done a lot of good people. Great things. We're doing great things for everybody else, Alan. And that's why you're here giving. See, she even started with she even started with this is a God thing, right? I mean, that's what we're doing, Alan.
SPEAKER_02We're doing God's work. All right. We're doing God's work. It should be nice to get paid once in a while. It's just not the same currency. Even some mana would be like, why do I laugh on the ground?
SPEAKER_03Now I'm laughing hard at your jokes in the pod. When I go back and listen to them, I'm laughing more at your jokes than my jokes, and that sucks. It makes you so mad. It does make me mad. No, it doesn't.
SPEAKER_00Oh, goodness.
SPEAKER_03You're kind of a funny guy. Can we get back to Melissa?
SPEAKER_02What else can we write off? Yeah. What else can Chris? When we say we, we mean Chris.
SPEAKER_00What else can Chris what other items? Um, so the same thing is gonna be true. And I don't know, I know at least two of your businesses, but I don't know all the businesses that you have. But once again, think about intent, think about the type of businesses that you have, think about the ways that you're growing those businesses. There's some, you know, with newer businesses, yes, there are some restrictions on how much you can spend on startup costs and things of that nature. Um, but keep in mind that there's a misnomer that people think that you can only have losses for three years. Many small businesses don't make money. Probably most of America's small businesses don't make money.
SPEAKER_03Wow.
SPEAKER_00It's not that you can't make money. You should be making money, but it is not surprising if your expenses exceed your income.
SPEAKER_03Wow. That's a that's a gold nuggets and silver ring. It is. I mean, uh, well, we'll go back to it. It was it was true losses. I mean, for me, it was three years before I started making money because I started in 2008. Uh I poured a lot of money into the marketing and the business to get it going. Um, but I was up against this huge headwind that I couldn't see as much as everybody else, probably.
SPEAKER_02No, nobody could see that. So when Chris replaces the door he kicked in, is that a training expense? Is it a capital improvement? I mean, what bucket do you put that in? Um where it's motivational. Well, it was in the um conference room. The office. It was at the office.
SPEAKER_00Repairs and maintenance expenses.
SPEAKER_02It's just simple repairs and maintenance. Okay.
SPEAKER_03Thank you, Alan, for bringing that up here again. Back to the lows. Um again, probably in the next book. Will I put yeah, actually I'm gonna put that because I've been thinking about this.
SPEAKER_02Every once in a while you gotta kick a hole in the door.
lients Anywhere And Travel Talk
SPEAKER_03So every once in while you every once in a while you gotta drop the F-bomb, a well-placed F bomb. That's in my first book. Uh, but yes, every once in a while you need to kick a door down.
SPEAKER_04Okay.
SPEAKER_03There we go. Melissa, we're coming up on the end.
SPEAKER_02What kind of coach he'll be? I I I mean, you cry with your clients. Imagine what he does.
SPEAKER_00Excited.
SPEAKER_02Yeah.
SPEAKER_00Excited to see what this coaching looks like.
SPEAKER_02This is gonna be coaching. You guys could refer each other. Oh, you wanted somebody to care? Hey, here's Melissa. Yeah. All right, you want somebody who's gonna kick you in the ass?
SPEAKER_03Here's Chris. Melissa's gonna go, hmm, today it looks like you need an ass kicking. Hey, Chris.
SPEAKER_05Chris, Chris coming.
SPEAKER_03Can you just I just he just needs a couple hours, a little bit of your tough, tough love. Good cop, bad cop. You should be in the same look at you putting people together. You did it again. Yeah, Alan. My wife's so mad. I just benefit everybody else. You benefit everybody else. You're a good man for it, Alan, and it will pay us back. We know that because we give back to you guys every week. We do this thing. We brought Melissa on. Melissa, how can everybody find you? And then we're gonna wrap up with a couple more things.
SPEAKER_00Absolutely. So our office is in Duluth, Georgia. Our office number is 770-306-2386, and the website is www.mbkfinancial services.com. And I look forward to seeing you all.
SPEAKER_03I love this.
SPEAKER_02All right, we got to keep going though. All right. Wait, wait, wait. What uh do they have to be a Georgia business?
SPEAKER_00They do not have to be a Georgia business. And Alan, thank you so much for asking that.
SPEAKER_03Uh two and a half to two. All right, fine. Good question, Alan. That was a big mess. Sorry. So which client is the furthest away from you?
SPEAKER_00My furthest client. Um, it's funny. I actually just got back from Colorado this weekend. I spent the weekend with um six or so clients over five and a half days, which was fun. Um, can you write off a lift ticket?
SPEAKER_03Hell yeah.
SPEAKER_00Absolutely.
SPEAKER_03I want to know where you where'd you go?
SPEAKER_00Uh Denver and Fort Collins.
SPEAKER_03I am so jelly right now. All right, which which but you go to resorts? You went to the ski resorts?
SPEAKER_00No, it was all work.
SPEAKER_03What?
SPEAKER_00But it was great.
SPEAKER_03You know what? We're on the podcast, but the IRS isn't listening. Are you sure it was on work? It just wink or tug your ear a little bit. Thank you, baby. All right, now we're talking. Oh, we went to Breckenridge. I knew it. Keystone, maybe? I don't know. I just passed up going out there. Oh, I'm not gonna be able to ski this year. I don't know yet. I'm gonna see if I can sneak one in later.
SPEAKER_00You should.
SPEAKER_03I know. I I'm not getting any younger, and these knees aren't gonna last much longer.
SPEAKER_00Absolutely.
SPEAKER_03Wow, what a great place out there, right? Colorado. So, Colorado is that's where your farther farthest place is.
SPEAKER_00Um, it's funny. I have clients in California, and I have clients in Canada.
SPEAKER_03So other countries. Ah, what I do. You like that? I do like it up, I set it down.
SPEAKER_00So either uh so I'm not exactly sure I would probably say California, but yeah, no, I love my Canadian friends.
SPEAKER_03I know they're a little disappointed. We're uh uh recording this one right after the Olympics, where the U.S. hockey team went two and oh in the gold medals, and I got to see both of them, and it was glorious. Uh it was awesome.
SPEAKER_02So you gotta love somebody getting their teeth knocked out and then scoring the winning goal. Scoring the winning goal. I mean, come on.
SPEAKER_03And then the women's game, what had happened there was uh gosh, we're coming to the end. I gotta tell you anyway. So I was back in the office, I'd been running estimates. I'm in the soup right now, kind of re-rebuilding the uh sales team. So I'm out there running estimates. I get back to the office, I know the the game's on, I don't want to watch. So I got in, I turned it on, and I had it recorded and it went right to live. And I was pissed. I'm like, oh no, no, no, no. And they were down. It was two minutes and 20 seconds left in the women's game, and they had pulled the goalie. For those who don't love hockey, that means you're a total risk that all it takes is one random shot and you're done.
SPEAKER_02It's uh desperation mode, all in.
apid Fire And DIY Nightmares
SPEAKER_03That chips are all in. It chips are all in. And actually, I can tie this right back into the small business safari. That's what it's like being in the business. That's like being in business by yourself, man. You're rolling it, you're rolling it all the time. You're you got all their chips in, and then bang, man, Hillary Knight knocks that sucker, she tips it in perfectly, takes it to overtime, and then we win the game. That was, and then Keller killed it, and that was awesome. And then you're right, Jack Hughes is if he's not the poster boy of hockey, but that totally helped U.S. hockey. But back to this, uh, can we please tell us?
SPEAKER_02I forgot where we were. I was just reliving the moment.
SPEAKER_03She was out in Colorado, and I'm so jealous because it's such a beautiful country out there. Back to jealousy, that's right. Not back to our guests, back to you, right? I was jealous of my guest because she was there. All right, thank you. All right, Melissa Kennebrew, MBK Financial. Write jealousy off. That would be, man, you'd be loaded. I would be loaded. You know what? Uncle Sam wouldn't see a dime. Then why don't we call him Uncle Sam? My dad's name is Sam. He wasn't Uncle Sam, he was my dad. And and attacks to go with him doesn't work. You know, I'd love to do our final four, but man, we got more to talk about, or did we want to do the final four? I'll let you know. We gotta do them quick. All right, here we go. Yep, rapid fire. In fact, that's exactly what this episode's called now, according to AI, because we've been working on our summaries, and it calls us the rapid fire. You ready to go? Yeah, what's a book you would refer to our small business safari audience?
SPEAKER_00Atomic Habits.
SPEAKER_03Nice. That's James Cleary, beautiful, love that. What's the favorite feature of your home?
SPEAKER_00My loft.
SPEAKER_03Loft. Why your loft?
SPEAKER_00It's just kind of like the unstructured place. Um, as you can imagine, my life is very structured.
SPEAKER_03Oh, there's no doubt. You guys check her out on YouTube. If this chick's put together, I mean, it's uh like everything's in the right place, and she does tax account. She has got to have structure. Yeah. So the loft is your place to get away and get crazy.
SPEAKER_00It's free.
SPEAKER_03I love that.
SPEAKER_00Yes, Alan.
SPEAKER_02No, I'm married to an accountant, so I'm just like, I get it. Yeah, totally.
SPEAKER_03He just spent an hour with his wife. Uh trying to get away. What? No, that's me. Not you. All right. That is totally you. All right. Number three. One of the things we haven't talked a lot about here, but you help out people, but we talk about customer service a ton because we're kind of customer service. Freaks. Crazy about it. What's a customer service pet peeve of yours when you're out and you're the customer?
SPEAKER_00The customer is always right.
SPEAKER_02No, they're not.
SPEAKER_00They're not.
SPEAKER_02No, no, they're not. Some of them are really stupid. Yeah.
SPEAKER_03Because customers are stupid. Yes, with those. Right.
SPEAKER_00Small business, as you know, right? We have to maintain relationships, reputation. There's so much that comes along with it, but I'm sure I'm not the only one in the room that has had to fire a customer before. The customer is not always right.
SPEAKER_03That is gold. Actually, I uh what I put on our bishop plaque is the customer first. Customer's first, but the customer's not always right, especially when it comes to their home.
SPEAKER_00I like that.
SPEAKER_03Thank you. Thank you. Oh, does that mean I get another one? All right, let's go. All right, last one.
SPEAKER_02I'm just thinking about all the opportunities for you to have a customer in front of you, like where you push them down the stairs, or you know, the first thing you knock them off a cliff. That's a good idea. You know, that is a really well-written statement, Chris.
SPEAKER_03You know, I uh customer first, not customer right. Customer first, down the stairs, customer first, underneath the hammer, customer first, putting their finger inside the chop saw. Did you say you weren't gonna pay right? All right, I wish you could do like that. That would be a better way to get money instead of saying, Yeah, I'm not paying you.
SPEAKER_02All right, facing casino.
SPEAKER_03I uh thank you, Ellen. Um, don't worry. Did you knock your TV off over there? I would I did actually. Uh I'll tell you why in a little while. No, I didn't kick that, I was fixing something, and uh, I'm getting ready to remodel that area anyway. So quit looking at that. Please, you made Melissa look at a crooked TV. I know. I uh I was trying to fix something back there and it didn't work, so I went upstairs.
SPEAKER_02And went to do another one with a straight TV.
SPEAKER_03Did I mention handyman? I could fix anything. All right. All right. But don't worry, I can fix anything. So speaking of that crooked TV, thank you, Alan. What's a DIY nightmare story of yours, other than your friend on a podcast, pointing out your crooked TV as a handyman?
losing Motivation And Farewell
SPEAKER_00Very good. Um, very good question. Um as it relates to no, you don't get that that's a standard question. But I'm I'm going. So my DIY story is actually about the trusted toolbox. So a small project, but in fairness, I have a lot of projects that are small projects because um everyone in my house is under 5'3. So sometimes we need help getting things done. And I got new smoke detectors and tried to put them in and failed miserably. So all around my house, there were either missing smoke detectors, dangling smoke detectors, um, a lot of beeping. It was very stressful for a while until the trusted toolbox came in. And I don't know if the gentleman was just taller than us or he had a ladder, but either way, he had the tools that he needed.
SPEAKER_03Maybe the right skills. As the trusted toolbox, thank you, Alan.
SPEAKER_00Because we did not.
SPEAKER_03I love that training. So there you go. The trusted toolbox, we save you from yourself. Oh, I love that. Melissa Kennebrew has knocked it out of the park, guys. If you didn't learn something, that's on you, man. You gotta keep running up. You know what? You can either listen to sports talk radio, you can listen to the Olympics, which are all over now, so you can't listen to them anymore. You can listen to radio, you can listen to music, or you can get yourself better. Listen to this podcast. You just made yourself better. If you didn't learn something today, that's on you. Go out there, make it another day happen, make another week happen, make another month happen. We gotta keep going every day up the mountain. Let's get out of here. We gotta roll. Cheers, everybody.
SPEAKER_05Bye.
SPEAKER_03Thank you for listening to this episode of the Small Business Safari. Remember, your positive attitude will help you achieve that higher altitude you're looking for in the wild world small business ownership. And until next time, make it a great day.
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