Free calculator for security company owners
How much can a security guard company owner pay themselves?
A security company owner works with thin margins and a large payroll. What you can take depends on profit after overtime, and on how much cash is tied up in unpaid invoices.
The starting numbers are an example for a security guard company. Replace them with yours.
Three rules for paying yourself from a security guard company
- Base steady pay on average profit, after overtime.
- Take extra draws only when days to collect are under control.
- Personal taxes come out of what you take. Ask your accountant how much to set aside.
What changes the answer for a security guard company
In a guard business, the margin per hour is thin and payroll is huge. A small slip in overtime can wipe out the month's profit. Look at profit after overtime before deciding your pay.
The worked example
In the example, the business keeps $100,000. That covers $76,000 for two payrolls, $9,000 of monthly bills and $15,000 due soon. Steady pay comes to $8,000 a month. Anything above $100,000 in the bank is spare.
A common question
Why does my security company make a profit but never have cash?
Because you pay guards before clients pay you. The faster you grow on slow terms, the more cash sits in unpaid invoices. Days to collect is the number to watch.
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.