The Financial Harmony Method:
The Financial Harmony Method:
Eric Levenhagen, CPA
If you feel like you’re a master of your craft but that you’re NOT an expert at growing and managing the myriad of financial decisions along the way, then this is for you.
Being an independent service professional is tough. You went to school and have invested thousands of dollars in your education only to feel like you’re constantly overwhelmed and not getting ahead financially.
You may have tried several accountants or business consultants who promise to help you grow and provide tax advice, but these have either been a complete waste of money or left you feeling even more confused than when you started.
And you still have to show up every day and give your all for your clients and patients. It’s exhausting, isn’t it? Feeling like you have to work all day, show up with a smile, and go above and beyond with your clients because you can’t afford to lose them.
You simply CANNOT afford to let them go to one of your competitors. It’s not that you don’t love giving your patients your all that’s exhausting. Rather, it’s the fear of them deciding to move forward and look elsewhere because you’re already having trouble making payroll or paying taxes. You’re not sure how you’ll make enough money if clients start leaving.
After all, you see and hear examples of others in your field that seem like they have it all figured out. Other service professionals seem to be growing their practices, they spend time with their families and take regular vacations, and they don’t seem overly stressed. How are they doing it?
You try to work harder and bring on more clients, only to realize it’s defeating the purpose because you’re working longer and longer hours. And the extra revenue you just brought in doesn’t seem to be making a difference in your bank account at the end of the month.
All of my clients have felt the exact same way, and if you’re experiencing similar confusion and frustration then I want you to listen really closely. Service professionals in private practice fail because they rarely implement strategies, systems, and processes that make their financial management more effective. Without pouring over spreadsheets or studying outdated financial reports they don’t completely understand.
But your goal should be a sustainable cash machine - one that is permanently profitable and maximizes the financial results you are getting for all of your hard work.
If this sounds like your dream, then listen up because I’m about to share with you a
Every one of your current problems, frustrations, and worries stems from you not knowing how to create a financial management system that works for YOU.
And it is possible to create a business that is permanently profitable without working longer hours, stressing over paying your bills and taxes, and without burning yourself out.
Creating a permanently profitable business means you are in total control. You call the shots. You are stable and consistently churning out the income that you desire.
And most importantly, you are living the lifestyle you want, making the impact you want to have both for your clients and your community, and you’re building a legacy you can be proud of.
You gain a level of freedom possible because you have the financial resources to create an impact in ways that are most important to you and you have freedom over your schedule.
If this is truly what you want then I’m going to tell you the first thing you need to do in order to make this happen.
Then you need to stop being the “busy business owner” and chasing down more revenue and acknowledge that deep down your business really owns you. AND…
You need to acknowledge that you truly have no idea how to create a business that is permanently profitable and helps you achieve all of your personal financial goals.
That sounds harsh, and it may come across as insensitive, but it is the truth. Even though it’s not your fault that you’re in this position, it is your fault if you continue to repeat the same mistakes and continue in the same cycle.
After all, you never went to school to learn how to run a sustainable business. No one’s ever taught you how to actually implement a simple system to take away all of your cash flow worries before. So I don’t expect you to know how to do it…
For those of you who don’t know me, I’m Eric Levenhagen. Over the course of my career, I’ve helped hundreds of clients reduce their taxes and increase their after-tax profits.
In fact, I’ve used the same systems in my business to:
I’ve been named as one of the top Certified Tax Strategists in the country, am a Mastery-Level certified profit advisor, and the first to adapt all of these proven processes to the professional services industries.
But while I’ve had much success in my life, I’ve also made a lot of mistakes. Due to my love of business, I’ve stretched myself too thin. Almost to the breaking point.
I wanted to help everybody, but I realized the more industries that I explored, I simply didn’t like working with other industries as much as I do with coaches, consultants, doctors, and other professional service providers. While my systems still worked and I continued to get amazing results for my clients, I just wasn’t as fulfilled as I once was.
So, after coming to my senses I decided to trust my instincts, follow my heart and focus on solely helping independent professionals build a highly profitable private practice that brings them all the money, impact, and freedom they want with all of the financial and business expertise I have accumulated over the course of my career.
I’ve taken all my years of experience and working with hundreds of clients and packaged all that knowledge into a comprehensive system that I refer to as
So, at this point, you’re probably wondering what exactly is my process for helping so many businesses and for transforming my own practice into a permanently profitable venture.
It’s actually pretty simple.
Just like anything else in life, before you can build upon something you first need to have the proper foundation built. People use different phrases such as framework or blueprint, but I like to use the word “foundation” because it shows that it is something that sets everything else up for success.
If you don’t have a solid foundation to start with, you’ll never be able to build upon that foundation successfully.
I find this is one of the keys to why my clients feel so much stress, anxiety, and sheer frustration with their business. They have never built the foundation. In most cases, they don’t even know where to start.
That’s because they are focused on doing things the current way, or what I refer to as the ‘Old Way’. The Old Way is NEVER going to get you the results that you’re looking for. If you really want to double your profits, legally minimize your taxes, and reach your personal financial goals faster than you could on your own in 1 year or less, then you need to implement what I refer to as the ‘New Way.’
You must focus on controlling cash the moment it comes into your practice. Cash is KING. It is the lifeblood of your practice. You need a real-time system that provides instant feedback on the health of your cash flow.
Higher profits will lead to higher taxes, unless you have a system in place before the end of the year. The average American pays more in taxes than in food, clothing and shelter combined. You need a plan to protect your income from unnecessary taxes.
This is where most independent professionals get stuck. If their practice is running on fumes, they develop a plan for more marketing and more revenue. What you’ll come to realize here is this is a sure way to get burned out fast. Yes, revenue and collections are important. And you need a clear strategy to help you KEEP more of that revenue for what truly matters in your life.
The financial services industry is not built for business owners. Most accountants and financial consultants are focused on compliance. Crunching numbers about what has happened in the past, filling out forms, and filing them by deadlines. And that’s not going to help you build a permanently profitable business. Monitoring your financial health in real-time will allow you to make better decisions in the day-to-day management of your practice. You’ll know you are making good choices in the moment.
I’ve given you a small sample of what each one of the foundational steps entails. Let’s get more focused and go in-depth on each one below.
Remember when I mentioned the Old Way and the New Way to improve the financial health of your practice? Well, Let’s dive into exactly what I mean and how you can ditch the “old” and adopt the “new” way of doing things!
Most accountants have taught their clients to focus on the “bottom line”. Your Profit & Loss (or Income Statement) is a great tool. The problem is it doesn’t help you manage your cash flow and profitability in real-time.
Examples of managing finances the old way include:
X Make spending decisions based solely on your bank account balances
X Review monthly financial statements you don’t fully understand
X Pay yourself the bare minimum to conserve cash
X Reinvest earnings back into your practice
X Hope you can grow enough to sell before you can step out of the business or fully live your life
Most independent professionals don’t distinguish between financial reporting and a real-time, proactive cash management system.
I’m going to show you how my profit automation system helps you make better, proactive decisions about managing your business.
Frustrating. You end up surviving deposit to deposit. One bad week or month could force you to close your doors or drown deeper in debt.
You end up wasting a lot of time pouring over financial statements and reports that are already 4-8 weeks outdated when you get them. Leaving you stuck always reacting to what has happened in the past.
You know you’re working hard but never sure where all the money seems to go.
You have little or no business savings, no free time completely away from the practice, and no actionable insights to fix it.
Get ready. Managing money in your business the new way may sound way simpler than anything you have heard before.
Don’t let this fool you. This “New Way” of cash flow management is what I refer to as “Profit Automation” and it works incredibly well. It is a system that leverages the human behaviors that are already hard-wired in you.
You will finally have the proactive information you need to run your business better.
You will be able to worry less about making ends meet and have the resources to grow your business as you see fit.
Your stress levels will go down, allowing you to give your all to your clients and still have the energy to focus on your family.
Most tax professionals are tax preparers. They take the numbers you give them, put them in the right boxes on the right forms and file them by the right deadlines.
Any tax planning service they offer is typically a projection showing you how much tax you might owe. Then they leave you to come up with a plan to try and pay it.
Any advice a tax preparer or tax planner gives you tends to be reactive and out of context of the bigger picture.
You end up in one of two situations:
X Spend profits away each year to avoid taxes (spending $1 to save 40 cents), OR...
X Let your taxes go unmanaged to try and stay “under the audit radar”.
Either way you are greatly limiting your ability to create wealth and freedom with your practice.
Your tax strategy should be developed before the year even begins. A proper strategy uses tax savings techniques that are court-tested and protected against an IRS audit.
It is proactive and focuses on more than just your private practice. Your plan should also account for your family, any other income and deductions on your personal tax return, and other businesses or investments you own.
A Comprehensive Tax Strategy utilizes the tax code in the best possible way for your personal situation across the following major categories:
You can sleep well at night knowing you are taking advantage of tax savings techniques that most CPA’s miss.
Lower your audit risk and know your deductions are protected from IRS scrutiny.
Keep more of the money you are working so hard to make. Use those extra funds to grow your practice faster, improve your lifestyle, give to causes you care about, or anything else you want.
Conventional wisdom starts with a top-down approach.
Use industry benchmark data or peer data to develop a revenue goal based on what you think you can produce.
Hope at the end of the day there’s enough money in the bank to pay yourself regularly, pay all your bills, and grow your practice without racking up piles of debt.
Industry benchmark data combines the best and worst performers in your industry.
This leaves you working harder and harder for average results.
When those revenue goals don’t produce the level of income and prosperity you want, the first action is to increase revenue.
This ends up being a never-ending cycle that keeps a lot of business owners stuck.
A smart way to know precisely how much revenue you need to generate to meet your personal goals is to reverse-engineer your revenue goal.
Instead of guessing, figure out what you need to cover all of your bills. Then figure much you want to make for future investments, retirement, and your other lifestyle and legacy goals.
You can use those numbers to reverse-engineer exactly what your practice needs to make in gross collections each year.
And you’ll combine that with the Profit Automation and Comprehensive Tax Strategy techniques above for the best results.
Take the guesswork out of financial forecasting models and stop working so hard to be average.
When you develop a revenue goal based on what’s important to you most - your lifestyle, family & loved ones, charitable causes, etc. - you can now clearly see how all of your hard work will generate the financial results you want to achieve.
This will drive all of your marketing and practice management decisions.
And you will strive for it harder since you have connected it directly to your personal goals.
Most business owners and their CPA’s think about tax and accounting work as a series of compliance tasks.
Record and reconcile transactions, report historical numbers, crunch the numbers further, fill out and file tax forms.
Usually multiple service providers are handing off their work product to the next in line. The bookkeeper hands off to the CPA who hands off to the financial advisor.
Each of these professionals work in their own areas, hardly ever communicate, and leave you to try and implement confusing and sometimes contradictory advice.
The truth is, finding providers who are good at math and can fill out tax forms is the easy part.
This conventional approach to managing business finances will leave you with conventional results.
You’ll work longer hours and sacrifice your lifestyle today to try and be more profitable and reach your goals.
When cash flow problems occur, your own compensation is usually the first expense to get cut.
You’ll work all year to show a profit, only to spend it away at year-end to avoid taxes. Spending a dollar to save 40 cents.
If there is any money left after all of that, it gets reinvested back into the practice.
You need a financial professional who will become the backbone of your entire financial team.
An advisor who:
Professional service providers who have a proactive financial consultant on their team produce faster results and enjoy their practice and their lives more.
They develop higher standards of care for their financial health, just like the high standards of service you have for your clients.
You will have the power of a Fortune 500 corporate finance department at your disposal, at a fraction of the investment.
And you will be able to save a lot of time, headaches, and trial and error by having a systematic process to maximize your after-tax wealth without burning out.
You will have the proven, effective system that is sure-fire, ready to implement, which will propel your business while helping you live the lifestyle you desire, make the impact you want to have, and build and leave your legacy.
There are a few ways to achieve this and implement these foundational steps.
Option 1 is to do it yourself. Right now, you at least now what you didn't know before about the process, you might be able to implement this information on your own.
It's not impossible, but it will definitely take you longer than you probably have the patience for. This is quite obviously NOT the best option to take simply because you don't know what else you don't know. And this option leaves you to learn from your mistakes instead of having someone guide you through a proven process. This is going to take up to 10 times longer to achieve similar results when working with a consultant. (If your business can survive that long without help.)
You can also take Option 2 and hire one the THOUSANDS of CPA's or small business financial coaches claiming to get results in any industry under the sun. Hiring one of these companies is going to put the focus back on compliance-level activities, constantly looing backwards instead of proactively focusing on ways to improve your business.
To top it off, most of these professionals rarely have the experience in your industry to ensure results. In fact, most of them don't even produce real results that will have a profound impact on your life.
Or, you can take Option 3 and join the Financial Harmony movement. Doing this ensures that you're implementing the steps in the most efficient and effective way possible.
You see, working with us, I guarantee that you will get results in a year or less with simple, proven tools and processes designed to meet you where you're at. That's because we've been where you've been, we've helped hundreds like you, and this model is not a one-size-fits-all solution. Financial Harmony is designed to make your business permanently profitable, save taxes, and help you reach your personal goals faster than you could on your own.
But before you jump right in, it's important that I make one thing very clear...
Financial Harmony isn't for everyone. In fact, we will 100% turn you down if you don't fit our criteria. But, if you're a consultant, coach, marketing agency, doctor, or professional service provider who wants to improve the financial health of your business by increasing profits, legally minimizing your tax bill, and putting an extra $20,000+ in the bank in 1 year or less, then Financial Harmony was built for you.
And because this is a highly focused program and time-intensive on our part, we only have the bandwidth to do 30 strategy calls a month. If everything about Financial Harmony resonates with you, I invite you to click on the button below.