Business Money management

Discussion in 'Business Operations' started by ClippersLC, Mar 26, 2005.

  1. ClippersLC

    ClippersLC LawnSite Member
    Posts: 130

    Ok, I have a question, I have been in the green business for about 7 years. for the first five or six years I done it just for a little have fun money so to speak. But now that I am 17, and have decided to do lawn care for a full time career i need to know how to manage the money properly. I work alone, so lets say I make $1,000 in a week. How much should I put in my business account, and how much should I pocket for my paycheck that week? also the payment for the truck, the fuel cost for the equipment, the truck insurance, and my business insurance, and any other bills I'm forgetting to mention which bills should be paid from which money...the business account or my pocket? I also have a question on how much of your income should you let "Uncle Sam" know about if your paid about 80% of the time in cash, payup but i'll start a new thread on that subject. thanks for any help in advance. :help:
  2. DaLLa$

    DaLLa$ LawnSite Member
    Posts: 22

    O my.......If the IRS ever visited here.
  3. CWilliams

    CWilliams LawnSite Member
    Posts: 60

    You need to conduct your business legally. I would suggest a class in bookkeeping. Our local community college has a class titled "Small Business Bookkeeping." This would help you tremendoulsy. A through search of lawnsite will also help. There is no way you will get all the answers you need on this site.
  4. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    go talk to an accountant and they can help you out

    PMLAWN LawnSite Gold Member
    Posts: 3,535


    Business money is business money is business money...

    You can be payed a salary or paid by the hour but that is the only time you should get to use any money personally. All else stays with the business.
    All equipment is payed for by the business.
    You do not get payed in cash! You receive income. No matter if it is paper that is green with dead presidents on it or a check or credit card you are getting income. And that income has to be reported. You have to pay taxes on all profit after expenses. Again talk to an accountant.

    You do not need to start another thread on how much to report as you need to report it all. Even if you do not agree with the way the government uses our taxes, it is the law to pay. Don't like the way it is than vote for someone else next time but live under the laws the way they are today. If you cheat the IRS you are cheating your country which is also my country so you are cheating me. Myself and many other honest citizens will not like that.

    Get an accounting program for your computer and that will help you keep tract of all the numbers. If you run the business like a business and keep tract of every thing you will be surprised at how much you can legally write off and avoid taxes. (LEGALLY).

    Learn business and get an accountant. You will have to pay for this but that is part of doing business and will be reflected in your price structure. You will now have to understand your costs and overhead and profit and change your prices to cover everything.
    Do not ever say that you can charge less because something is paid for. Nothing get paid for except by the income off your business. Learn your costs early and build your business right. That way you will have a true business (something that supports itself and can run with or without you and produces profit after you get paid) rather than a job as a solo grass cutter.
  6. kipcom

    kipcom LawnSite Senior Member
    from indiana
    Posts: 352


    1st get yourself into a business management course.

    2nd Keep the books 100% straight and honest.

    and to answer your question....after you get into the BM class you can decide
    on how to pay yourself a "draw" in the form of hourly OR salary.

    Regards......... :cool2:
  7. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    I strongly suggest you look into purchasing QuickBooks to help manage your $$$ and business.
  8. ClippersLC

    ClippersLC LawnSite Member
    Posts: 130

    I have a program for my computer called Quicken Pro- For Small Business that I bought a few weeks ago to keep track of things. will Quicken Pro- For Small Business be sufficient? and also does anyone have any tips on how to use this program? thanks again for any help :waving:
  9. lawnlubber

    lawnlubber LawnSite Member
    Posts: 186

    Not a big fan of QB but I am a fan of 17 year olds with motivation. The state and federal tax authorities have many publications you need to read. They will also give you free help with the less complex stuff. I would start by looking at Federal Form 1040 Schedule C.

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