Free calculator for pest control owners
How much can a pest control business owner pay themselves?
Pest control profit is steadier than most service trades because of recurring plans. Prepaid plans can still make cash look bigger than profit.
The starting numbers are an example for a pest control business. Replace them with yours.
Three rules for paying yourself from a pest control business
- Base steady pay on profit from plans and jobs.
- Take extra draws only after setting aside cash for visits still owed.
- Personal taxes come out of what you take. Ask your accountant how much to set aside.
What changes the answer for a pest control business
Prepaid annual plans are the trap. They put a year of cash in the bank at once, but the visits still have to be done. A pest control owner who pays themselves from that cash is spending next year's revenue.
The worked example
In the example, the business keeps $46,000. That covers $28,000 for two payrolls, $8,000 of monthly bills and $10,000 due soon. Steady pay comes to $8,800 a month. Anything above $46,000 in the bank is spare.
A common question
Can I pay myself from prepaid plan revenue?
Only the part you have earned by doing the visits. The rest belongs to visits still owed. Count it out of your cash before deciding what you can take.
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.