KL Entertainment– 2026 Financial Roadmap
What we completed, what it produced, and what remains pending under your agreement
KL Entertainment | Sincere Soul Records | Jenla Enterprises LLC Agreement
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The overall goal of this engagement is to keep your financial world organized, current, and useful for decision-making across your entertainment, music, real estate, and related business activity.
Under your agreement, our work is not limited to basic bookkeeping; it is designed to support clean reporting, stronger tax planning, better cash flow visibility, and more coordinated financial decisions.
This roadmap also helps reduce surprises by connecting monthly accounting, payroll, tax strategy, entity planning, and agency communication into one coordinated view.
As your income streams, business ventures, real estate activity, and state exposure evolve, the engagement is intended to help you stay prepared, informed, and positioned for future opportunities.
January
Pre-Engagement Context
Before the 2026 work reflected in this dashboard, your 2025 activity created several items that carried into the current planning cycle. Your 2025 management reporting, 2025 accountable plan records, 2025 1099 filings, and 2025 tax return preparation all affected the way we approached payroll, reporting, entity planning, and tax strategy in 2026.
Several 2025 business decisions also remained relevant, including the treatment of Jenla’s real estate activity, the Sincere Soul Records legal matter, the California-to-Louisiana entity discussion, the treatment of rental activity, and the need to coordinate your business structure with future income, touring, royalties, and family planning goals.
Your Goals and Concerns
- You needed the prior-year records and year-end reporting organized so 2026 could begin with clean books, clear payroll assumptions, and completed vendor reporting.
- You needed your 2025 accountable plan expenses and mileage captured through December, with a new workbook needed for 2026.
- You needed 1099 vendor reporting completed, filed, and uploaded for your records.
- You needed 2026 payroll reviewed and processed based on the agreed payroll direction.
- You needed monthly bookkeeping to remain current for KL Entertainment Group and Sincere Soul Records
What We Completed
Goal: Prior-Year Reporting and Management Review
Status: ✅ Completed
We prepared and delivered the 2025 Management Report for KL Entertainment Group. The report included an executive summary, financial highlights, and key takeaways for your review, with the accounting team set to schedule a year-end review discussion.
Goal: Accountable Plan Records
Status: ✅ Substantially Completed
Your 2025 accountable plan expenses with mileage were captured through December. The remaining item was to create and share the new 2026 workbook through the shared drive folder.
Goal: 1099 Vendor Reporting
Status: ✅ Completed
The 1099-NEC process was completed. Vendor review was requested, the summary was confirmed and signed, the 1099s were e-filed with the IRS and state, and copies were uploaded to the secure portal for your records. One vendor email delivery issue was identified and corrected.
Goal: January Payroll Review and Processing
Status: ✅ Completed
Your payroll direction was reviewed, including the salary setup and January payroll confirmation. January payroll was processed, and the W-2 form was sent.
Goal: Current Bookkeeping
Status: ✅ Completed
January bookkeeping was completed for the applicable entities. Amex account access was restored, and the January accounts were marked complete.
What this produces
January produced a cleaner starting point for the new year by closing key prior-year administrative loops, completing vendor compliance work, and confirming payroll setup. It also moved your records into a more organized position for management reporting, 2025 tax preparation, and 2026 planning.
This month moved your overall goal forward by turning prior-year activity into usable records, completed filings, and a clearer foundation for 2026 financial oversight.
Pending Items as of January
Pending Item Status Key
✅ Completed — The materials clearly show the item was completed.
🔶 Partially Completed — The materials show meaningful progress, but not full completion.
⚠️ Still Open — The materials do not show the item was completed.
Pending Items for Us
🔶 Create and share the 2026 accountable plan workbook through the shared drive folder.
✅ Check Track1099 until IRS receipt was confirmed where noted.
✅ Update the vendor profile for the corrected 1099 email delivery issue involving Alicia Enstrom
Pending Items for You and Your Team
⚠️ Use the tax ID shown on each 1099 when retrieving vendor copies through e-delivery, because an incorrect ID can create a mismatch.
⚠️ Continue keeping QuickBooks bank and credit card connections active so monthly work can proceed without delay.
February
Your Goals and Concerns
- You needed the 2026 budget finalized in a way that reflected expected revenue, family timing, touring activity, payroll strategy, and new music releases.
- You needed payroll salary planning adjusted to manage monthly cash flow while preserving year-end tax planning flexibility.
- You needed the Sincere Soul Records lawsuit and possible settlement tax treatment considered before funds were received.
- You needed the Louisiana house strategy reviewed so your father’s housing plan, your line of credit repayment, and possible tax effects could be coordinated.
- You needed Louisiana gig activity reviewed to determine whether any city filing was required.
What We Completed
Goal: 2026 Budget Finalization
Status: ✅ Completed
We completed the 2026 budget discussion. Revenue was set at $750,000, matching the prior-year planning level, and marketing was increased to $30,000 to support upcoming music releases.
Goal: Payroll Salary Planning
Status: ✅ Completed
The payroll salary plan was updated to $65,000 for 2026. This lower base salary was intended to reduce monthly payroll tax burden while preserving the ability to use a year-end true-up for tax planning.
Goal: Sincere Soul Records Lawsuit Planning
Status: ✅ Substantially Completed
We reviewed the lawsuit to recover royalties and legal fees and discussed expected tax treatment. Legal fee reimbursements were identified as taxable ordinary income because the original fees had been deducted, and royalty recovery was identified as royalty income. A possible Cash Balance Plan strategy was discussed as a way to create a significant retirement deduction if settlement proceeds are received.
Goal: Louisiana House Strategy
Status: ✅ Substantially Completed
We reviewed the plan to sell the Louisiana house to your father at cost so he could secure financing and repay the line of credit used for the property. The strategy was discussed as a way to avoid capital gain on a recent purchase and potentially coordinate future ownership through trust planning.
Goal: Louisiana Gig Filing Review
Status: 🔶 Partially Completed
The need to review Dropbox for 2025 Louisiana gigs and determine whether a city filing was required was identified as an action item. The materials show that the item was assigned for review, but they do not show a final conclusion.
What this produces
February produced a working 2026 financial plan that connected revenue expectations, payroll, marketing, legal recovery, and real estate decisions. The meeting also clarified how a potential settlement could affect taxes and how future planning tools, including retirement planning and property structuring, may fit into the larger strategy.
This month moved your overall goal forward by converting expected 2026 activity into a budget, payroll direction, and tax planning framework before major income events occurred.
Pending Items as of February
Pending Item Status Key
✅ Completed — The materials clearly show the item was completed.
🔶 Partially Completed — The materials show meaningful progress, but not full completion.
⚠️ Still Open — The materials do not show the item was completed.
Pending Items for Us
⚠️ Review Dropbox for 2025 Louisiana gigs and advise whether any city filing is required.
⚠️ Research and advise on the Sincere Soul Records settlement tax classification as earned, royalty, passive, or other applicable income treatment.
⚠️ Re-engage the financial advisor if a settlement occurs and a Cash Balance Plan becomes timely.
Pending Items for You and Your Team
⚠️ Provide updates on the Sincere Soul Records lawsuit status and any settlement offers.
⚠️ Keep us informed on the Louisiana house financing progress involving your father.
⚠️ Continue confirming payroll when requested so payroll is not missed or delayed.
March
Your Goals and Concerns
- You needed QuickBooks access restored so our team could continue accounting and CFO review work.
- You needed financial planning support around real estate investments, debt reduction, education savings, unpaid royalties, possible legal action, and business expansion opportunities.
- You needed tax planning direction because 2024 results showed higher net income despite lower gross revenue, and rental losses could potentially become limited or suspended.
- You needed a follow-up path for retirement accounts and long-term planning.
What We Completed
Goal: QuickBooks Access Restoration
Status: ✅ Completed
QuickBooks access was restored for Randy Hughes, and he was added as an accountant with the appropriate specialized profile access. This removed an access barrier that could have delayed monthly work.
Goal: Real Estate and Debt Planning Discussion
Status: ✅ Substantially Completed
We reviewed multiple real estate items, including the Airbnb conversion, Louisiana rental property status, Los Angeles rental profitability, the California HELOC, the unused QuickBooks line of credit, and the need to keep focusing on SBA loan reduction. These items were discussed as part of the broader financial planning and debt management conversation.
Goal: Music Industry Legal and Royalty Planning
Status: ✅ Substantially Completed
We discussed unpaid royalties from the record company, the potential lawsuit, the estimated amount owed, and the promotional investment already made into the music. The legal matter remained open, but the financial issue was identified and incorporated into planning.
Goal: Tax Planning Around Rental Losses and Passive Income
Status: ✅ Substantially Completed
We reviewed the possibility that rental losses could become suspended depending on income levels and discussed strategies to generate passive income or otherwise manage the effect of suspended losses.
Goal: Retirement and Long-Term Planning Follow-Up
Status: 🔶 Partially Completed
A follow-up meeting was identified to discuss retirement accounts and long-term financial planning. The materials show the need and next step but do not show completion in March.
Additional Items Completed
Status: ✅ Completed
March bookkeeping remained current, with March accounts marked complete for KL Entertainment Group and related bookkeeping records.
Source reference: March 6, 2025 meeting notes — VIEW RECORDING.
What this produces
March produced restored accounting access, a clearer view of the major financial issues affecting your businesses, and a prioritized list of planning areas tied to real estate, debt, royalties, education funding, and tax exposure. It also helped align the accounting access issue with the broader CFO work so planning could continue with fewer operational blocks.
This month moved your overall goal forward by restoring the access needed for ongoing reporting and identifying the major financial decisions that needed to be addressed through the year.
Pending Items as of March
Pending Item Status Key
✅ Completed — The materials clearly show the item was completed.
🔶 Partially Completed — The materials show meaningful progress, but not full completion.
⚠️ Still Open — The materials do not show the item was completed.
Pending Items for Us
✅ Schedule or complete the follow-up meeting on retirement accounts and long-term financial planning.
⚠️ Continue monitoring the royalty dispute and incorporate any settlement or lawsuit development into tax strategy.
⚠️ Continue reviewing passive loss exposure and possible strategies connected to real estate and income levels.
Pending Items for You and Your Team
⚠️ Establish the 529 plan for your daughter’s education savings if you decide to move forward.
⚠️ Provide updates on unpaid royalty recovery or legal action.
✅ Continue developing the R&B Hall of Fame induction ceremony plans and clarify whether the opportunity will be handled through KL Entertainment Group or another structure.
April
Your Goals and Concerns
- You needed April bookkeeping completed and open account questions resolved.
- You needed confirmation about whether the Intuit and Amex lines of credit had been cleared.
- You needed the Amex checking statement provided when available.
- You needed April payroll processed after confirmation.
- You needed the Patriot-to-QuickBooks connection restored so payroll data could flow properly into the accounting records.
What We Completed
Goal: April Bookkeeping
Status: ✅ Completed
April bookkeeping was completed. During the month, only limited client queries were identified, and the accounting team requested the Amex checking statement when available.
Goal: Line of Credit Clarification
Status: 🔶 Partially Completed
The team asked whether the Intuit and Amex lines of credit had been cleared. The question was raised for confirmation, but the materials do not show a final written confirmation.
Goal: April Payroll Processing
Status: ✅ Completed
April payroll was confirmed and processed, with the payout scheduled for April 30, 2026.
Goal: Patriot and QuickBooks Payroll Integration
Status: ✅ Completed
When the team identified that Patriot was not connected to QuickBooks, the connection was restored. The team also used the issue as a cross-training opportunity so more team members would know how to reconnect the integration in the future.
What this produces
April produced updated books, completed payroll, and a restored payroll accounting connection. It also surfaced specific account and credit line questions that needed confirmation to keep liabilities and cash flow reporting accurate.
This month moved your overall goal forward by keeping your financial records current while correcting the payroll integration issue that affected clean accounting flow.
Pending Items as of April
Pending Item Status Key
✅ Completed — The materials clearly show the item was completed.
🔶 Partially Completed — The materials show meaningful progress, but not full completion.
⚠️ Still Open — The materials do not show the item was completed.
Pending Items for Us
✅ Enter or confirm the payroll journal details tied to April payroll where needed for bookkeeping completeness.
✅ Continue monitoring the Patriot-to-QuickBooks connection so payroll activity posts properly in future months.
Pending Items for You and Your Team
✅ Send the Amex checking account statement when available.
✅ Confirm whether the Intuit line of credit and Amex line of credit were fully cleared.
May
Your Goals and Concerns
- You needed April financial reports delivered and reviewed so the numbers could be used for planning.
- You needed a broader financial strategy discussion across your entities, including KL Entertainment Group, Sincere Soul Records, Jenla, the real estate business, the foundation, estate planning, and a possible touring and production company.
- You needed current subscriptions and monthly recurring expenses reviewed for possible reductions.
- You needed the California-to-Louisiana business move discussed, including whether closing California entities and registering in Louisiana was included in the current engagement or should be separately billed.
- You needed May payroll and bookkeeping completed.
What We Completed
Goal: April Financial Report Delivery
Status: ✅ Completed
April financial reports were delivered for review. The reports were attached and sent with a note that the tax team would work through strategy before looping you in for next steps.
Goal: Entity and Business Strategy Review
Status: ✅ Substantially Completed
We completed a strategy call recap covering the real estate business, touring and production opportunity, KL Entertainment Group, Sincere Soul Records, the foundation, estate planning, Jenla, and Faith and Justice for awareness. The discussion identified where additional review was needed for entity activity, revenue expectations, investor structure, nonprofit planning, trust planning, and the Airbnb structure.
Goal: Subscription and Recurring Expense Review
Status: 🔶 Partially Completed
We committed to pulling together a full review of current subscriptions and monthly recurring expenses across your entities to identify items that could be reduced or eliminated. The materials show this was identified as an action item, but they do not show that the review was completed.
Goal: California-to-Louisiana Entity Planning
Status: 🔶 Partially Completed
We documented your desire to begin moving California businesses, including KL Entertainment, Sincere Soul Records, and Jenla, out of California and into Louisiana. The materials show that the team needed to check the contract for scope and obtain pricing guidance if the work was outside the current engagement.
Goal: May Payroll Processing
Status: ✅ Completed
May payroll was confirmed and processed, with payout scheduled for May 29, 2026.
Goal: May Bookkeeping
Status: ✅ Completed
May bookkeeping was completed after client queries were handled.
Additional Items Completed
Status: ✅ Completed
The client dashboard rollout and Bryan introduction process began internally for top-tier clients, with the goal of coordinating a more strategic team experience around future reporting, planning, and dashboard use.
Source reference: April financial reports — 26.04 KL Entertainment Group Monthly Reports.pdf.
What this produces
May produced a more complete picture of the businesses and family-related planning areas that need to be coordinated together. It also connected monthly financial reporting with strategic planning, especially around entity movement, estate planning, subscription review, real estate structure, lawsuit exposure, and future touring opportunities.
This month moved your overall goal forward by expanding the work from monthly reporting into coordinated CFO-level planning across your entities, investments, and future income opportunities.
Pending Items as of May
Pending Item Status Key
✅ Completed — The materials clearly show the item was completed.
🔶 Partially Completed — The materials show meaningful progress, but not full completion.
⚠️ Still Open — The materials do not show the item was completed.
Pending Items for Us
⚠️ Complete the subscription and recurring expense review across entities and identify items that can be reduced or eliminated.
⚠️ Coordinate the follow-up call with you and Randy to review each business and entity in detail.
⚠️ Confirm whether the California-to-Louisiana entity movement work is included under the current agreement or requires separate billing.
⚠️ Review the real estate business NAICS code and determine whether it correctly reflects the current business activity.
⚠️ Continue evaluating the touring and production opportunity, including financial viability and possible investor structure.
⚠️ Continue reviewing the foundation strategy, estate planning concerns, and Jenla Airbnb structure as part of broader planning.
Pending Items for You and Your Team
✅ Review the April financial reports and send any questions or comments
⚠️ Confirm details needed for the subscription and recurring expense review if requested.
⚠️ Provide updates on the legal matter, including expected additional legal fees and any settlement movement.
✅ Provide any corrections or additions to the May call recap if anything was misstated or missing
June
Your Goals and Concerns
- You needed a tax strategy meeting focused on a possible major income increase from the lawsuit settlement, new album revenue, touring activity, real estate activity, and state tax exposure.
- You needed guidance on Q2 California and Louisiana PTE tax payments.
- You needed to evaluate whether a cost segregation study and short-term rental strategy could create a usable non-passive loss.
- You needed guidance on Louisiana registration and the Louisiana Revenue Account Number needed for the PTE payment.
- You needed a revenue projection process based on your 2026 gig schedule by state and revenue.
- You needed support on the California EDD audit by preparing the initial form, sending it to you, proposing a call to help with your portion, and gathering supporting documentation.
- You needed June payroll and bookkeeping completed.
What We Completed
Goal: June Tax Planning Meeting
Status: ✅ Completed
We held the June 12, 2026 tax strategy meeting with Bryan and Randy. The meeting focused on pending settlement income, album revenue, real estate activity, short-term rental planning, the new touring company idea, PTE tax payments, and state-level planning.
Meeting reference: Impromptu Zoom Meeting — June 12, 2026 — 46 mins — View Meeting or Ask Fathom.
Goal: Q2 PTE Tax Payment Guidance
Status: ✅ Completed
We provided instructions for the California and Louisiana PTE tax payments. The payment amounts were $1,000 for California and $3,000 for Louisiana, with payment instructions for the California FTB and Louisiana LaTAP portals.
Source links preserved:
California FTB payment portal: https://www.ftb.ca.gov/pay/index.html
Louisiana LaTAP portal: https://latap.revenue.louisiana.gov/_/
Goal: Short-Term Rental and Cost Segregation Strategy
Status: ✅ Substantially Completed
We reviewed the short-term rental strategy and explained that the Louisiana Airbnb could potentially support a cost segregation study if the activity qualifies as non-passive. We documented the participation requirements discussed, including average guest stay of seven days or less and one of the participation standards such as 500 hours, 100 hours with no one else spending more time, or substantially all work being done by you.
Goal: Louisiana Registration and Revenue Account Number
Status: 🔶 Partially Completed
We researched and communicated that a Louisiana Revenue Account Number was needed to make the Louisiana PTE payment. We first directed you to LaTAP and later clarified that KL Entertainment appeared to need Louisiana registration through GeauxBiz because it had previously been registered but had not filed a report since 2017. Assistance was offered when you had trouble setting up the Louisiana account.
Source links preserved:
Louisiana LaTAP portal: https://latap.revenue.louisiana.gov/_/
Louisiana GeauxBiz portal: https://geauxbiz.sos.la.gov/
Goal: Revenue Projection Through Business Manager Coordination
Status: 🔶 Partially Completed
We requested an introduction to your business manager, Q, so the team could obtain your 2026 gig schedule by state and revenue. The purpose was to improve income projections for tax planning and identify states where material income tax exposure could exist. The introduction was completed, and Q was asked to provide January 1 through current activity plus projected activity for the rest of the year.
Goal: California EDD Audit Initial Response
Status: 🔶 Partially Completed
We began preparing the initial audit form ahead of the June 10 deadline, planned to send it to you, and proposed a call to help you complete your portion. At the same time, we began gathering information that would be helpful as proof for the audit, including payroll records, payroll tax filings, 1099/1096 information, contractor W-9s, bank statements, general ledger detail, and contractor payment support.
Goal: June Payroll Processing
Status: ✅ Completed
June payroll was confirmed, processed, and the paystub was sent through the secure portal.
Goal: June Bookkeeping
Status: ✅ Completed
June bookkeeping was completed for KL Entertainment Group and Sincere Soul Records.
Additional Items Completed
Status: ✅ Completed
A referral introduction was made between Randy and the Atlanta actor contact you introduced, and Randy moved you to BCC so you would not be burdened by the scheduling thread.
What this produces
Pending Item Status Key
✅ Completed — The materials clearly show the item was completed.
🔶 Partially Completed — The materials show meaningful progress, but not full completion.
⚠️ Still Open — The materials do not show the item was completed.
Pending Items for Us
🔶 Send the initial EDD audit form to you and propose a call to help you complete your portion.
🔶 Continue gathering audit proof, including quarterly payroll registers for Q2 2023 through Q1 2026, Forms 941, Form 940, W-2/W-3 packages, state payroll filings, 1099/1096 records, contractor W-9s, contractor payment records, bank statements, and general ledger detail.
🔶 Connect you with a cost segregation firm once the short-term rental participation test is confirmed.
🔶 Continue evaluating the short-term rental qualification requirements and provide a practical tracking method for hours.
🔶 Continue reviewing the new touring company structure, including whether a C corporation structure, QSBS planning, and state entertainment credits are viable.
🔶 Continue monitoring the Louisiana registration and Louisiana Revenue Account Number issue until the account number is received and usable for tax payment setup.
🔶 Use the gig schedule by state and revenue once received to update revenue projections and evaluate state filing exposure.
Pending Items for You and Your Team
⚠️ Pay or confirm payment of the California PTE amount of $1,000 through the FTB portal.
⚠️ Pay or confirm payment of the Louisiana PTE amount of $3,000 through the Louisiana portal once the Louisiana account setup allows payment.
⚠️ Confirm whether the Louisiana Revenue Account Number for KL Entertainment has been received.
⚠️ Continue tracking personal management hours for the Louisiana Airbnb to support the short-term rental participation test.
⚠️ Provide Q’s 2026 gig schedule by state and revenue, including January 1 through current activity and scheduled or projected activity for the rest of the year.
⚠️ Complete your portion of the EDD initial audit form after we send it to you, or attend the proposed call so we can help you complete it.
⚠️ Provide any additional contractor agreements, invoices, or support for non-employee payments if they exist outside the documents already available to our team.
Pending Items as of June
Pending Item Status Key
✅ Completed — The materials clearly show the item was completed.
🔶 Partially Completed — The materials show meaningful progress, but not full completion.
⚠️ Still Open — The materials do not show the item was completed.
Pending Items for Us
⚠️ Enter or confirm the payroll journal details tied to April payroll where needed for bookkeeping completeness.
⚠️ Continue monitoring the Patriot-to-QuickBooks connection so payroll activity posts properly in future months.
Pending Items for You and Your Team
⚠️ Send the Amex checking account statement when available.
⚠️ Confirm whether the Intuit line of credit and Amex line of credit were fully cleared.
July
August
September
October
November
December
Prepared by Seven Figure Profits™