Post-PBIBS, Pre-Season: Why Now is the Time for a Financial Checkup

Written By Justin Boodram

The docks are clear, the champagne has stopped flowing, and the boats are either en route or locked into contracts. The Palm Beach International Boat Show (PBIBS) marks a high point in the marine industry calendar, but for the professionals behind the scenes—yacht brokers, crew, and business owners—it’s also a crucial turning point.

Yacht Brokers: Make the Flip Work for You

Brokers know the thrill of closing a deal at PBIBS—whether it’s a buyer secured, a seller signed, or a charter filled. But those wins come with tax consequences and financial planning needs that most don't realize until it’s too late.

Post-Show Financial Considerations for Brokers:

1. Commission Timing & Estimated Taxes

Boat show commissions often hit in large, irregular waves. That can leave you exposed to underpayment penalties or scrambling at year-end.

  • Are you calculating and submitting quarterly estimated taxes correctly?

  • Do you know your effective tax rate

2. Entity Structuring

If you’re earning six figures or more, operating as a sole proprietor might not be the most efficient setup.

  • Would you benefit from forming an S Corp or LLC for tax savings and liability protection?

  • Are you paying yourself via payroll or relying on draws?

3. Business Deductions Optimization

Many brokers leave money on the table by missing or miscategorizing legitimate deductions.

  • Travel, dockage, meals, marketing, listing photography, CRM software—all deductible.

  • Are you tracking expenses in real-time or relying on memory at tax time?

Yacht Crew: Don’t Let Your Paycheck Get Lost at Sea

If you're heading back to the Med, joining a new program, or just wrapped up your season in Florida, PBIBS likely marked a turning point in your yachting schedule. It's also the perfect moment to get your financial and tax situation squared away—especially if you're a U.S. citizen or resident.

Post-Show Financial Considerations for U.S. Crew:

1. Tax Residency & Offshore Income

Many U.S. crew assume that working internationally means they don’t have to file—but that’s not true.

  • If you hold a U.S. passport or Green Card, you're taxed on your worldwide income—even if you earn it offshore.

  • Are you tracking days in and out of the U.S. for the Foreign Earned Income Exclusion (FEIE)?

  • Have you filed FBARs (Foreign Bank Account Reports) if you bank abroad?

2. Income Tracking & Reporting

Payment methods for crew vary—some are wired, some paid in cash, some through management companies.

  • Are you documenting your income with vessel names, payment dates, and amounts?

  • Are you keeping a digital log of earnings and expenses in a format that's tax-prep ready?

3. Deductions You Might Be Missing

Even as a W-2 or 1099 earner, there may be overlooked expenses that you can claim depending on your setup.

  • Training, certifications, travel to and from vessels, uniforms, and agency fees may qualify in certain circumstances.

  • If you operate as an independent contractor, are you set up with a business entity to capture those deductions?

4. Long-Term Wealth Building

Working on yachts can provide strong income early in life—but it’s easy to spend without a plan.

  • Do you have offshore savings, retirement accounts, or an investment strategy in place?

  • Are you planning for the future beyond the industry—real estate, education, or transitioning to land-based work?

Marine Businesses: Turn Busy Season into a Profitable One

Whether you’re a mobile marine technician, a refit shop owner, or an e-commerce gear supplier, PBIBS often kicks off a wave of new work. That’s great—but without financial structure, that work can overwhelm you.

Post-Show Financial Considerations for Marine Businesses:

1. Cash Flow & Forecasting

You may have booked big contracts—but when are you actually getting paid?

  • Are you projecting cash flow based on payment terms, not just revenue?

  • Are you covering payroll and parts during long lag times?

2. Invoicing & Collections

Deals made dockside don’t always translate to timely payments.

  • Do you have a systematic follow-up process for outstanding invoices?

  • Are you charging late fees, deposits, or requiring payment milestones?

3. Labor, Subcontractor & Tax Compliance

High season usually means hiring help or subcontracting out.

  • Are your W-9s, 1099s, and payroll taxes being handled properly?

  • Are you correctly distinguishing between employees and contractors to avoid audits?

4. Q2 Tax Planning

Many marine businesses overpay in Q1 and underpay in Q3.

  • Have you checked your Q1 P&L vs Q1 projections?

  • Are you reinvesting smartly into equipment, marketing, or hiring?

The Bottom Line: Financial Health Keeps You Afloat

PBIBS is more than just a showcase—it’s a starting gun. What you do in the weeks after the show can set the tone for your entire season, and for your long-term success. Whether you're booking charters, hopping between ports, or managing backorders, your finances need as much attention as your next job.

Justin Boodram
Next

The Advantage of Structuring Your Yacht Brokerage as a Business for Tax Efficiency