My ONLY New Year’s Resolution

New Year’s resolutions are ok to focus your habits, but if you are to reach your ultimate potential, you can only devote your life to ONE single thing that does something for your customers.

I have devoted my life to reach the ultimate ability in helping talented individuals get the most out of life by optimizing their finances with AI.

Your purpose in life may be to reach the ultimate ability in making your customers feel their best every day with fingertip fashions.  Scale up from 1 location. OR your life purpose may be to reach the ultimate ability in making your healthy and flavourful signature broth at an elite level in terms of both quality and speed.  Scale up from 1 location.

If you can not see yourself becoming a multi-millionaire within 10 years of your craft, you should revisit if your ultimate ability has enough value to the world: the easiest being 1) e-commerce 2) restaurant chain 3) nail salon chain

Be uncompromising in your mission, your quality and this applies to your vendors and staff. If their vision is different they will drag you down.

Anything else I do, like weight training, martial arts, skiing, and parenting, is to maintain my mental and physical health to support my 1 life purpose. Health is the first priority, without it, you can never be in the 1% of your craft. But I make sure the supporting activities never distract me from my 1 life purpose.

I have had no stress over the last year because I am always 100% in-the-moment, I have no cell-phone, no smartwatch, no thoughts, other than the task at hand.  Knowing there is no way to produce a better result, makes stress irrational since the job could not have been done any better.

To control entropy in my life of devotion, I have no obligations to anyone other than:

  1. Customers
  2. Business partners (spouse)
  3. Mentorees (children, employees)
  4. Mentors (once a month with my Götti & aunt in Switzerland)

In accounting terminology, everything else is immaterial. This includes any “family” and single-serving friends that don’t fall in one of the 4 categories.  My attention is limited and I can not afford to waste a single distraction/brainwashing if I want to live a devoted life. It’s better to be isolated than suffer regression.

When you have a devoted life, you can not lose because your “competitors” are focused on making money rather than reaching the ultimate ability.  The byproduct of your devotion will give you enough free-time with your mentorees and hobbies.

If you don’t want to teach your children the technicalities of your craft, then general business mentorship about providing value is just as good. As a society, we are responsible for helping the youth find THEIR talents so they can have purpose.





The path from penniless to wealth is simple, but not easy.


Eight Lessons from 2018

  1. Precisely define the one-point vision for your business.  We save our customers the maximum on the only costs that matter.  Why does your business exist?  Your one-point mission for your nail salon may be to help your customers feel their best every day with clean fingertip fashions. Or make your healthy and flavourful signature broth at an elite level in terms of both quality and speed.  Your business will do well if you are happy making customers happy.
  2. Focus on recurring revenue by being undesired by the undesirables.  We have managed to net our client retention rate to 99% by appearing unappealing to those customers who don’t appeal to us. Another option could be as simple as maintaining a high-end atmosphere.
  3. Know your enemy.  We decided THUT Wealth would be completely different, the anti-accountant.  Once you know your enemy, you’ll know what you need to do. Depending on your business it may be something as simple as scaling your signature clean look (white surfaces).
  4. Half your enemy’s menu is better than a half-assed menu.  Solve scalable problems and leave more unique problems to your enemies.
    1. Have fewer service/menu/product items. Which item has the least interest? Determine which item you would remove if you were forced to remove one.
    2. Fewer options/decisions for your customer
    3. Fewer employees. If you are understaffed 2 weeks of the year, apologize to customers but don’t use it as a reason to overhire.
    4. Fewer phone calls.  E-mail is scalable and has more info per minute and forces everyone to get to the point and save time.
  5. Customer Acquisition.  The more customers you buy (ex. paid traffic on Facebook, Google), the more expensive it is to buy (non-linear).  Ultimately, $1,000 spent on making a great product/productified service will generate more revenue through referrals than the same $1,000 in advertising. That said, influencers matter.  Rather than buying traffic, seek out people who can refer you more customers that share your vision.  Everyone is either with you or against you.
  6. Influencer attraction.  Our best marketing has been the blog posts we have created on our own unique data on B2B, e-commerce, restaurants, and salons. Blog, instagram and make you-tube videos that do something for your influencers and customers.
  7. Priorities. Why don’t we have a log-in for customers? Why didn’t you shop around? Why didn’t we buy a Hyundai? Because none of it matters.  Our most successful customers are the ones that have priorities and consequently do not waste time on decisions that have less than a 10% change in their total income. All non-urgent decisions are ignored for 2 days and if it’s still an issue in 2 days, we’ll make a quick analysis and decision in less than 15 minutes by turning every decision into 2+ defined choices.
  8. Decision-fatigue. In addition to making meaningless decisions quickly, decisions can be reduced with daily and weekly routines & menus.  Costco may not be the best for everything, but there is rarely a good enough reason to make a trip anywhere else. At most, go to Costco only once a week or replace it altogether with a scheduled biweekly shipment from another vendor. Avoid anything else, like shopping, that is energy draining and has too much stimulus, noise, and decisions.

If you have the interest to go into the details of the math behind these eight lessons please read on:

  • Wealth Inequality in Canada  WE NOW LIVE IN A WOLRD OF HAVES AND HAVE NOTS Canada is in the bottom quartile of peer countries in terms of wealth disparity.   WE ARE ENTERING A NEW ERA OF MASSIVE INEQUALITY Wealth inequality in Canada has increased over the past 20 years. Each year the Canadian middle-class loses its’ share of […]
  • Business Travel Expenses  You may claim an annual shareholders meeting as long as its reasonable (ie. Banff, Las Vegas for those us in Alberta or 2500km from your corporate home base). In addition to this, you are allowed to fully deduct all expenses related to attending 2 conventions per year. Other trips can be partially written off (prorated for […]
  • Dividends vs. Bonuses  Reading a bunch of articles on the internet, an uninformed person may make the conclusion that dividends trump wages every single time. Although accountants would have you believe they have the magic sauce to navigate their world, their world is governed by the same laws that govern the rest of the universe: math and its […]
  • 4 Focuses to make $200+/hour after-tax  Even without fast food or a salon, you can still make $200+/hour AFTER-TAX as a middleman. What do you sell? You either sell AI, equipment (industrial/medical/data center), houses, vehicles, or something scalable online. After processing over $2.8 billion in transactions over 10 years, four definitive conclusions is that you need to focus 1) […]
  • Quickbooks Online vs. THUT Accounting  As Certified QuickBooks Proadvisors we have met many clients who have intended to do their books on a daily basis, but life gets in the way, and depending on how many transactions occur on your synced accounts, even failing to match the transactions after a couple days can lead to a mess. And if you […]
  • 3 reasons why I started a business in Edmonton  I run an Accounting Sofware-as-a-Service business based in Edmonton. Accountants are all about cost-cutting, but the truth is that it’s all worthless compared to the big 3: taxes, housing, and payroll. Our mission is to reduce costs by 15-25% for businesses with recurring revenue. Please reach out to us at 1. Taxes Combined, the […]
  • How much taxes should I expect to pay?  Remit the net of the GST you collect on your invoices less the GST you pay on purchases every quarter (or if you are eligible and it works out for you remit 3.6% of your total invoices every quarter in accordance to the quick method accounting. Prepare to pay 12% corporate tax on your net […]
  • Part 2: Get Big, Stay Lean: A How-To Guide For Clean Bulkers  Before looking to grow you need to get lean first.  Once you have downsized until the marginal costs of outsourcing exceed the cost of doing it internally, you are ready to get big. Contrary to popular belief, you can get big without becoming inefficient. Here’s how to get the best results from your bulking plan! Spend more! Most people focus […]
  • Part 1: Get Lean before Bulking  What happened to THUT? At its height, we employed 6. Today, with more and larger customers, there is only 1 employee.  In order to grow, older companies (4+ years) need to get lean first: downsize until the marginal costs of outsourcing exceed the cost of doing it internally. Staying lean is key to operational efficiency.  For […]
  • Scale, Derivatives & the Most Important Ratios  Since we have agreed that math is the key to escape the middle class, we must go further to how to apply math in your business. Everything operates on first and second derivatives, marginal effects, and ratios. Algorithms are the key to scale: Find a problem that you can address that will bring value to customers. Re-frame […]
  • Math to Escape the Middle Class  Being part of a certain profession, or earning a certain amount of money does not ensure your exit from the middle-class.  Most people are stuck there because of math. We focus on the only 3 sources of negative cash flow that matter: taxes, housing and in the case of a scalable business – payroll.  Even […]
  • Investing Philosophy Updated for 2018  For the past 10 years, I was a strong proponent of dollar cost averaging. But our bull market will come to an end in this 4th turning. As of this writing,  Bank of Canada rate is only 1.25%. In 7 months we expect it to be at 1.75%.  With historically low-interest rates housing prices have […]
  • Man’s best friend: Dog Not Wolf (Employees vs contractors)  “If one holds his state based on mercenaries, he will be neither secure nor peaceful; for they are divided, disloyal, ambitious and without discipline… they have neither fear of God nor are loyal to fellow men.” – Niccolò Machiavelli Substitute state with company and mercenaries with contractors as you see that there is a misalignment of […]
  • ChatBots for Mass Market Businesses  Keeping true to our focus on minimizing payroll costs, Blockchain-enabled AI Bots are more cost-efficient than employees, available 24/7, have a quicker response time and will result in more sales. By using blockchain technology there will be a ledger of each customer’s conversation with the ChatBot in the event there is a problem. Online product sales: Chatbots should […]
  • Customer is King  The most important things in valuing a business are detailed financial records, well-documented operations (SOPs) and customer metrics: the long-term value of the customer, the cost of acquiring customers, revenue, and lost customers. Last week a dozen of our customers were listed as 2018 Golden Fork winners so we will start with the fast food group: […]
  • Math Hacks for Your Business  Location Due to mathematical clustering and conformity, the closer you are to your highest-grossing competitor, the more likely it is you will get half their customers upon opening. If you follow the rest of the advice in this blog and have multiple sources of income, to begin with, you ride out the zero-sum game until you […]
  • Running a Nail Salon  What are the three most important performance metrics? The lifetime value of a customer is king, and the three things that drive it at salons are client retention technician retention and retail sales per client. Client retention. Repeat customers generate a higher return on every dollar spent getting them in the door. Having a client […]
  • Lifestyle design for 2018 and beyond  There is too much choice and we all suffer decision fatigue. The start of the year is a good time to plan out the rest of the year. Life is too short to spend time shopping – shop as little as possible and have your necessities automatically delivered to you in a biweekly shipment. Likewise, […]
  • How Does Your Income Stack Up?  Do you know how well you’re doing income-wise? Many of us have no accurate idea because we don’t know how much our peers earn. While constantly comparing yourself to others may lead to unhappiness, you should know where you stand because it dictates your strategy going forward. If you don’t know where you are today, […]
  • Top 2 Profitable Purchases of 2017  2017 isn’t over yet but I guarantee that nothing else I buy in the next 3 months could surpass these 2 products. Read on if you want to: save time for what’s REALLY important save energy maximize your productivity and efficiency BACKGROUND I have two kids, a 3 year old and 5 year old, which […]
  • Choosing Your Market & Pricing  There are only two markets you need to know: The top 20% (controls 70% of Alberta’s wealth) Average women Where is the average men? They simply don’t count in Alberta– their women control their money -so unless you are targetting the high-end market direct your efforts directly to women! How do you pick your market? […]
  • 5 Rules To Keep Your House From Being A Bad Investment  If the housing market has a positive outlook you can consider a home less than 2.5x your gross annual household income if you make a 20% down payment.  If you can make a down payment of at least 30% you could consider a home that costs up to 4x your gross annual household income. Consider […]
  • Double Your Money  If you put $C ($500,000) into investments that pays r% (3%) each period, then after n (24 years) periods the amount of money will be P ($1,016,397). (Example is italicized) P = C (1 + r/n) nt where     P = future value     C = initial deposit     r = interest rate (expressed as a fraction: […]






A new era of inequality


  • Canada is in the bottom quartile of peer countries in terms of wealth disparity.



  • Wealth inequality in Canada has increased over the past 20 years.
  • Each year the Canadian middle-class loses its’ share of total income while wealthier income groups increase its’ share.











  1. Sell something worth buying, with a story worth telling
  2. Target it for small groups of people (you can not compete with Coca-Cola)
  3. Tell a story that matches the delight of those small groups
  4. Promote the word
  5. Produce at an elite level, in terms of both quality and speed to build up the brand (personal and business) and inspire confidence and trust.
  6. Plot the worst possible outcome and reverse engineer the opposite outcome.
  7. Get paid by project but pay others by the hour

Qualitative > Quantitative

$3 million earned through investments (real estate) will never have the same value as $3 million earned through the diligent execution of your craft because of the uncertainty in the former.  Therefore, the only investment that matters is the money you spend into turning your craft into a business.

  1. B2B (B2C unless its e-commerce is a waste since average people will drag you down).
  2. E-commerce
  3. Restaurant chain
  4. Nail salon chain









Business Travel Expenses

You may claim an annual shareholders meeting as long as its reasonable (ie. Banff, Las Vegas for those us in Alberta or 2500km from your corporate home base).

In addition to this, you are allowed to fully deduct all expenses related to attending 2 conventions per year.

Other trips can be partially written off (prorated for personal component) if you can attribute business purposes to the trip. Keep notes/e­mails related to business meetings. You need at least 1 business appointment scheduled before you leave.  Over 50% of the days on a trip must be for business. Your travel days and weekends in between workdays on Friday and Monday count as business. Travel to a destination on Thursday, have a meeting on Friday, stay the weekend, meet with customers on Monday and Tuesday, and Wednesday flying home is 7 business days. This allows for another 6 days at your destination as vacation and still expense your transportation expenses. For everyday that is business, you are able to deduct your lodging, meals, car rentals. So, if your entire trip includes 7 days of business and 6 extra personal days, you will be able to deduct your hotel for only the 7 business days.

Dividends vs. Bonuses

Reading a bunch of articles on the internet, an uninformed person may make the conclusion that dividends trump wages every single time.  Mainstream wisdom caters to the lowest common denominator, and that is why it perpetuates more filth. Advice for the highest common denominator + total focus on your craft + utter disrespect for the status quo = game-changer.

Although accountants would have you believe they have the magic sauce to navigate their world, their world is governed by the same laws that govern the rest of the universe: math and its marginal effects.

Once you understand this, you will understand that you can make hard categories like dividends = good and wages = bad.

Bad categorical thinking:

  • Dividends are taxed less personally than wages, anyone who takes a bonus is being wasteful” similarly bad is:
  • Dividends require you to pay tax twice – first in the company, then personally, and corporations do not enjoy an exemption amount

Good marginalist thinking:

  • “How much deductions against the corporate income?”
  • “How much personal taxes?”
  • “When does moving in one direction or the other stop being worth it?”

In the case of dividends, corporate income tax is paid on the income earned by the corporation and the dividend is paid out of the after-tax earnings. This dividend is then taxed in the shareholders’ hands which takes into account the dividend tax credit system. Starting in 2016, there was an increase in the effective tax rate on non-eligible dividends. The gross-up factor for non-eligible dividends decreases and consequently, there is a progressive decrease in the dividend tax credit. Under-integration may occur where the tax-payer is being double-taxed since they already paid tax in the corporation and now they pay personal tax on the same income.

As with all convex mathematical functions, there is only one minimal value that describes the combined taxes in terms of its variables. Our job is to find the global minimum of this function, that is, we find the point such that f(x ) < f(x) for all in the domain of the function.

Optimizing combined corporate + personal taxes depends sensitively on draws, income, and dividend-salary mix.

Click on”the link to download a great article by the Managing Director of Tax Planning at CIBC Wealth Services:dividends-bonus

Here he explains that in Alberta, in our second example there is an absolute tax rate disadvantage on paying tax at the corporate rate. In the seven provinces where there is a tax rate disadvantage on SBD income, income must be retained for a period ranging from 1 year (in British Columbia, New Brunswick or Nova Scotia) to 11 years (in Alberta) before paying a dividend at that level for savings to be realized. In the second example, income should be distributed through dividends only if the income is expected to be retained in the corporation for 11 years; otherwise, it is preferable to pay out the income as a wage.

The second, unrelated irritation I have with “the art of paperwork“, is how some accountants miraculously can reduce their clients’ personal taxes by “losing” their shareholder draws between inter-company accounts. If you have two related corporations and one corporation invests money in the 2nd venture, the due-to-related-parties in the 2nd venture should match precisely the investment in the first company. Today, the CRA employs algorithms to match these amounts on your related companies and will eventually find and review the error. Although the accounting practitioner can avoid any serious penalties (by saying it was an innocent paperwork error) the client will be reassessed and have to pay all the taxes + non-deductible interest and penalties = fake accomplishment. Accounting is a beautiful series of debits and credits which must balance.

Make no mistake, these people are cheating their customers. The client signs all the paperwork saying they take responsibility for the reported numbers. We parted ways with one well-known client who was not happy with paying her fair share, only to get an email from this same firm afterward, birds of the same feather flock together.

Any inconvenience you may have suffered can be turned into a learning experience and the future just gets better:

  1. The money you can make back, but the time you can never, so if you are going to work, then hone your hard-to-replicate skills.
  2. Prioritize learning and honesty which builds goodwill and is manifested in referrals and a lifetime of abundance. The inverse of prioritizing earning will ultimately lose you the customer.
  3. Manage your business on a yearly basis, rather than quarterly or monthly. Spend your time doing what you do. Operate on 5-year plans. We focus on doing the right thing each day and creating value for our clients. Most people focus on short-term gains and the expense of building long-term value.

4 Focuses to make $200+/hour after-tax

If you can not create anything, you can still make a living by selling something, someone else created.

What do you sell?

You either sell AI, equipment (industrial/medical/data center), houses, vehicles, or something scalable online.

After processing over $2.9 billion in transactions over 10 years, four definitive conclusions is that you need to focus 1) your inventory and 2) your market while optimizing 3) alternatives for your customers and 4) your outsourcing.


Marginal cost bisects average cost at the minima of the average cost.  If you can reduce inventory you will improve your profit by maximizing your output variables.  Inventory turns, is a measure of how many times inventory turns over in a year. The higher the number of inventory turns-or the lower the inventory days–the tighter your
management of inventory and the better your cash position. As long as you have enough inventory on hand to meet customer demands, the more efficient you can be.

Inventory is “frozen cash” the faster you can get it out of the door, the better off you will be. The longer you keep inventory, the more money you lose in opportunity cost. Low inventories will also mean you can afford to sell your product at comparatively low prices. You would be able to sell your product cheaper because you would be able to sell them more quickly.

Everything in life operates on first and second order derivatives. The second order derivative shows that with each added different item in your inventory, the curve in relation to the cost will get steeper as your costs increase but not pro rata with the different items you add. Each different item/product line takes time and effort to sell (the most expensive things), so trying to sell more different items is like trying to fill many pools with 1 garden hose. Its easier to fill 1 pool rather than 2. The solution is to sell less variety but to make more money off of each product line. Consequently rather than spending $100,000 on X different categories of inventory, you can spend the same money on half the variety.


  1. Women
  2. Rich people (people who earn over $137,790 per year in Edmonton) – they control 70% of Alberta’s wealth.

What about men who earn less than $137,790 per year in Edmonton? They simply don’t count – their women control their money – if you’re not selling houses over $500,000 or vehicles over $50,000 then sell what women want.

It’s important to choose your market and your customer. You have to know what the ideal customer wants. Everyone can get want they need, but you will earn more if you can give the customer what they want. When someone wants something they
will pay higher margins compared to when they need something.


Not having any reasonably similar alternatives will mean you lose customers.

Brand your company with a compelling and focused mission that leverages your combined special skills. People get rich by adding value to other people’s lives, rather than just acting as a middleman/retailer.

The path to success is not as clear as the path to failure. So by doing the opposite of 90% of your competitors, it will ensure you will succeed. There is always a choice between status and money. Most people choose status and have more variety rather than being content with a smaller presence and more money.


Now that you make over $200/hour AFTER-TAX (calculated by taking your after-tax income and dividing into the hours you work. ) you know should enforce it. Like Naval Ravikant iterates in his famous tweet storm, “If fixing a problem will save less than your hourly rate, ignore it.  If outsourcing a task will cost less than your hourly rate, outsource it.”

If your problem is business related than you can use your pre-tax hourly rate since business expenses are paid with pre-tax dollars, while residential repairs and maintenance are paid for with after-tax dollars.

  1. Build scalable brand leveraging algorithms and/or employees.
  2. Invest in real estate

Quickbooks Online vs. THUT Wealth

Many customers ran into issues that QuickBooks Online (QBO) could not address, so they were happy to switch to THUT Wealth.

THUT Wealth replaces 2+ vendors (bookkeeping + taxes).  While QBO requires you to hire an accountant to compile the corporate tax return.  If your business is e-commerce, fast food or a nail salon, then THUT Wealth will be much more economical.

QBO is still not entirely automated and is only as a good as its user.  The categorizing of programmed transactions is automated, but in addition to clicking match, you will need to do monthly bank and credit card reconciliations.  We need to reiterate that 1 error in matching or doing the reconciliation wrong will compound errors throughout the file.

If you made 2 sales and deposited the proceeds together at your branch in one lump sum, Quickbooks Online (QBO) is not smart enough to match the 2 received payments to the 1 deposit.

Even as ProAdvisors, if we set up all the “rules” in Quickbooks, you as the user will still need to click “match” when your bank says 1 transaction found.  If you never “lump” your deposits together (more than 1 sale physically deposited into the bank), this will minimize your problems. (meaning, 1 deposit for each sale)

Summary for QBO
  1. Never lump deposits
  2. Never let your account be disconnected from your bank (or you will lose transactions which automatically downloads and you would need to manually type in each one)
  3. Daily: match transactions
  4. Weekly: keep in touch with your ProAdvisor with any problems before they compound
  5. Monthly: account reconciliations
  6. You’ll still need another vendor, an accounting provider (plus if they are a Certified Quickbooks ProAdvisor) to compile the corporate tax return.

While QBO is the most popular cloud accounting solution, THUT Wealth is a 3-step AI:

  1. Autonomous data extraction with THUT AI Extractor

    THUT extracts data from receipts, bank and credit card statements with deep artificial neural network technology.  Cleansing algorithms allow it to extract transactional data that is 100% accurate (saves 90% of the time taken by accountants).

  2. Process transformation with THUT Neural Network Technology


    THUT Neural Network Technology automatically allocates invoices and receipts to financial accounts. All your bookkeeping is done instantly without error-prone human work. Neural network technology can deduct autonomous models by recognizing data in large historic sets.  Our deep learning modules are trained on $2.9 billion of validated transactions to deliver autonomous results that continuously improve.  We use mathematical optimization algorithms to save you money. As with all convex mathematical functions, there is only one minimal value that describes the combined taxes in terms of its variables.

  3. Reporting with THUT Autonomous Technology

    You receive your clear and thorough reporting package in PDF with full-text search and we file everything with the Canada Revenue Agency- on-time and with the best result (unlike humans, algorithms are never wrong). We have countless proof of Edmonton’s biggest firms making costly mistakes.  Their reliability is significantly affected by physical, mental, and emotional states (robots perform flawlessly and don’t need to sleep and recuperate).

Which one is right for you?

Use your pre-tax income to calculate your pre-tax hourly rate (since Accounting is paid for with pre-tax dollars).  If THUT Wealth’s AI cost less than your hourly rate than THUT is for you.  If THUT Wealth costs more than your hourly rate than Quickbooks Online is right for you.

Once you make more than the average person, it does not make sense for you to specialize in something that is not directly related to your ability to generate revenue. This is because of the minimum efficient scale.