Free calculator for lawn care owners
How much can a lawn care business owner pay themselves?
A lawn care owner often works on a crew and runs the office. Pay has to come from profit across the year, because most of the cash comes in seven or eight months.
The starting numbers are an example for a lawn care business. Replace them with yours.
Three rules for paying yourself from a lawn care business
- Set steady pay from yearly profit divided by twelve.
- Set aside equipment replacement cash before any draw.
- Personal taxes come out of what you take. Ask your accountant how much to set aside.
What changes the answer for a lawn care business
Prepaid season plans can make spring look rich. That cash pays for cuts you still owe. Count only what you have earned when deciding what you can take.
The worked example
In the example, the business keeps $33,000. That covers $18,000 for two payrolls, $6,000 of monthly bills and $9,000 due soon. Steady pay comes to $4,800 a month. Anything above $33,000 in the bank is spare.
A common question
Should a lawn care owner pay themselves in winter?
Yes, if summer profit was set aside for it. Steady pay through the year is easier to plan than big summer draws and nothing in January.
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.