Free calculator for pool service owners
How much can a pool service business owner pay themselves?
A pool service owner earns most of the year's profit in the warm months. Steady pay has to come from the whole year's profit.
The starting numbers are an example for a pool service business. Replace them with yours.
Three rules for paying yourself from a pool service business
- Divide yearly profit by twelve for steady pay.
- Take summer draws only after setting aside the winter shortfall.
- Personal taxes come out of what you take. Ask your accountant how much to set aside.
What changes the answer for a pool service business
Summer cash makes it tempting to raise your pay in July. A pool service owner who does that often pays it back in February, out of the business savings. Set pay from twelve months of profit, then let summer refill the winter reserve.
The worked example
In the example, the business keeps $30,000. That covers $18,000 for two payrolls, $6,000 of monthly bills and $6,000 due soon. Steady pay comes to $5,600 a month. Anything above $30,000 in the bank is spare.
A common question
Should a pool service owner pay themselves less in winter?
Steady pay is easier to live on and to plan around. Set it from the full year, then hold the summer surplus in the business for winter instead of taking it out.
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.