Wake Up to Wealth Podcast: Mastering Business Financials with Sara Lavdis

Episode Release Date: June 18, 2025

In this insightful episode of the Wake Up to Wealth podcast, host Brandon Brittingham welcomes Carson and Greg Hurleen, alongside special guest Sara Lavdis, to delve deep into the intricacies of mastering business financials. The episode provides invaluable advice for entrepreneurs and business owners aiming to transform their financial management practices and achieve long-term wealth.

1. Introduction to Financial Mastery

The episode kicks off with Carson Hurleen expressing gratitude to the listeners and highlighting the podcast’s impressive growth:

[00:54] Carson Hurleen: “…we are number two in the United States in investing and we just cracked the top 19 today in business. So can't thank you guys all enough for supporting us…”

Carson introduces Greg Hurleen, their Chief Financial Officer (CFO), praising his expertise in financial management:

[00:54] Carson Hurleen: “…definitely one of the smartest financial minds… Sarah Lavdis, who happens to be the watcher of all the money for all the things that we do…”

2. The Crucial Role of Financial Organization

Carson emphasizes the importance of proper financial advice and back-office management for business success:

[03:29] Greg Hurleen: “…entrepreneurial types have a kind of brain that's geared more towards sales necessarily… they should be focused on doing that if they want to be profitable… Otherwise you're just running blind.”

Greg highlights how many business owners neglect financial organization, leading to potential blind spots in profitability and growth.

3. Cost Segregation: Maximizing Tax Benefits

A substantial portion of the discussion revolves around cost segregation, a strategy to accelerate depreciation deductions and reduce taxable income.

What is Cost Segregation?

[06:51] Greg Hurleen: “It's basically where you walk a property and tell you what are the individual pieces that make up that property… you break it down into something that has a less depreciable life… so you can write off in the current year.”

Greg explains that by segregating costs, businesses can depreciate certain components of a property over shorter periods, leading to significant tax savings.

Benefits and Practical Examples:

[08:14] Carson Hurleen: “…if we bought a $350,000 residential rental and we did a cost seg… what’s the math? Roughly $60,000 write off.”

Using a $350,000 property as an example, Carson illustrates how cost segregation can lead to substantial write-offs, thereby enhancing cash flow and profitability.

4. Corporate Structures for Tax and Liability Management

Greg discusses the importance of choosing the right corporate structure to optimize tax liabilities and shield the business from unnecessary taxes:

[10:01] Greg Hurleen: “…we use S corporations… it allows you to set aside a piece of your return as more of an investment return as opposed to straight up ordinary income… shielding yourself from payroll taxes… about 15.3%.”

By utilizing S corporations, businesses can classify portions of income in a way that minimizes exposure to self-employment taxes, thereby retaining more profits.

5. Understanding and Managing Financial Statements

The conversation shifts to the critical need for business owners to comprehend their financial statements, particularly Profit and Loss (P&L) statements and balance sheets.

Common Financial Misunderstandings:

[15:26] Greg Hurleen: “…people really don’t even understand what an asset or a liability is… whether to lease or buy a vehicle… basic financial concepts that a lot of business owners struggle with.”

Greg points out that many entrepreneurs lack fundamental financial literacy, which hampers effective business management and decision-making.

Real-Time Financial Monitoring:

[16:31] Greg Hurleen: “…technology has gone a huge way of allowing you to do it in real time… online-based bookkeeping, fractional CFOs…”

Carson and Greg stress the importance of real-time financial monitoring to make informed, timely decisions rather than relying on outdated financial data.

6. Practical Steps to Financial Organization

Carson offers actionable advice for business owners looking to get their financials in order:

Step 1: Separate Personal and Business Finances

[28:07] Greg Hurleen: “…do you have a business account or are you running everything through your personal accounts?”

Ensuring that personal and business finances are distinct is foundational for clear financial management and accurate reporting.

Step 2: Seek Professional Financial Assistance

[30:33] Greg Hurleen: “…reach out and ask for, hey, how much does it cost for me to walk in and talk to you…”

Hiring a CPA or a trusted financial advisor can provide the necessary expertise to organize and interpret financial data effectively.

Step 3: Educate Yourself on Financial Statements

[31:19] Carson Hurleen: “You need to understand the basics of how to read a profit and loss statement, how to read your balance sheet…”

Understanding the basics of financial statements empowers business owners to make strategic decisions and track their financial health accurately.

7. The Consequences of Poor Financial Management

Greg and Carson discuss the potential pitfalls of neglecting financial organization:

[21:04] Greg Hurleen: “…if you don’t have accurate financials and you’re trying to ever exit a situation, you will not be able to…”

Without accurate and organized financial records, businesses face challenges in securing investments, obtaining loans, and achieving favorable valuations during sales or exits.

8. Final Advice and Encouragement

Carson wraps up the episode by reinforcing the importance of financial discipline:

[33:05] Carson Hurleen: “…you have to do the research to figure that out, because that’s all. You cannot run a business effectively without doing this stuff and having your back office. You can’t turn a blind eye to this without having it buttoned up.”

She urges listeners to take proactive steps in managing their finances to ensure business success and personal peace of mind.

Notable Quotes

• Greg Hurleen on Entrepreneurial Focus:

  “[03:29] Greg Hurleen: ‘…If you don't organize it from the jump, you're just running blind.’”

• Carson on Financial Discipline:

  “[21:04] Greg Hurleen: ‘…if you don’t have accurate financials and you’re trying to ever exit a situation, you will not be able to…’”

• Carson's Closing Thoughts:

  “[33:05] Carson Hurleen: ‘…you cannot run a business effectively without doing this stuff and having your back office buttoned up.’”

Conclusion

This episode of Wake Up to Wealth underscores the paramount importance of mastering business financials. Through expert insights from Greg Hurleen and practical advice from Carson Hurleen, listeners gain a comprehensive understanding of essential financial strategies, including cost segregation, optimal corporate structuring, and the necessity of real-time financial monitoring. By implementing these practices, entrepreneurs can enhance their profitability, minimize tax liabilities, and position their businesses for sustained growth and success.

Resources Mentioned:

• Cost Segregation: A tax strategy to accelerate depreciation deductions.
• S Corporations: A corporate structure that can help in minimizing self-employment taxes.
• Accruity & Horizon Trust: Trusted partners for financial services and self-directed IRA accounts.

Takeaway: Proper financial management is not just a backend necessity but a strategic tool that empowers businesses to thrive and achieve their wealth-building goals. Investing in financial expertise and maintaining organized, real-time financial records are critical steps toward unlocking your business's full potential.