Free calculator for moving company owners
How much can a moving company owner pay themselves?
A moving company owner sees most of the year's cash in summer. Steady pay has to come from the full year, with winter and claims accounted for.
The starting numbers are an example for a moving company. Replace them with yours.
Three rules for paying yourself from a moving company
- Set steady pay from yearly profit divided by twelve.
- Keep a claims reserve before any summer draw.
- Personal taxes come out of what you take. Ask your accountant how much to set aside.
What changes the answer for a moving company
Summer deposits make the balance look strong. Some of that cash belongs to moves not done yet, and some will go to claims. Take pay from profit on moves already completed.
The worked example
In the example, the business keeps $56,000. That covers $30,000 for two payrolls, $14,000 of monthly bills and $12,000 due soon. Steady pay comes to $7,200 a month. Anything above $56,000 in the bank is spare.
A common question
When should a moving company owner take a draw?
After peak season, once summer claims are mostly settled and winter costs are set aside. That is usually October.
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.