Free calculator for event rental owners
How much can an event rental company owner pay themselves?
An event rental owner sees most of the year's cash in a few months. Steady pay has to come from yearly profit, with deposits for future events left out.
The starting numbers are an example for an event rental company. Replace them with yours.
Three rules for paying yourself from an event rental company
- Set steady pay from yearly profit divided by twelve.
- Leave deposits for future events out of any draw.
- Personal taxes come out of what you take. Ask your accountant how much to set aside.
What changes the answer for an event rental company
Spring deposits make the bank look strong before the season starts. That cash pays for events you still have to deliver. Take pay from profit on events already done.
The worked example
In the example, the business keeps $47,000. That covers $18,000 for two payrolls, $14,000 of monthly bills and $15,000 due soon. Steady pay comes to $4,800 a month. Anything above $47,000 in the bank is spare.
A common question
When should a rental company buy new inventory?
In the off-season, with cash set aside for it, and early enough to be ready. Buying in peak season uses cash meant for crews and fuel.
Know what is safe to take, every week
One Page CFO shows the cash above your safe line every Monday, from your QuickBooks, checked by a CFO.