Originally Posted by Greensmith33547
Ok, I'm a little confused. I'm starting a lawn business around March of 2013 and my wife and I met with our accountant who said that we would take the amount we charge per hour, minus the cost of business, then take 25% for taxes from profit and the rest is net. I have seen questions like this open a can of words, but can someone give me a simple yes or no? My equipment including my truck is total $405 power month if that helps? Also how do you figure cost of doing business?
405 X 12 = 4860
4860 / 9 months of work = 504
504 /160 hours a month = 3.15 per hour
You need to make a profit on that investment ? You could get 15% in the stock market?
You need your operating cost... GTO Insurance? Inflation? What
You want to make 70K a year?
70K / 9 month = 7777
7777/160 = 48 per hour
You have to pay taxes so 25% is good so you need to make $60.00 per hour
plus your EQ and operating cost.