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Guys what are your annual expenses?

Discussion in 'Lawn Mowing' started by justmjc, Mar 14, 2004.

  1. justmjc

    justmjc LawnSite Senior Member
    Posts: 261

    I know this is a loaded question, but how much do you typically spend in yearly expenses. I know a guy that does $80k in business, yet shows $30-$50k in expenses as it flucuates year to year, with one person employeed. So he only does $30-$50k before taxes? How the heck can he survive on only $30k some years? After looking at some of his expenses, I found that I would not have nearly the same expenses as him. I wonder if he was doing this to show less for the end of the year....

    So, let me ask this.....How much do you think your expenses should be on average per year? ASIDE, from your payroll, what are your cost to do business? NOT including your payroll or taxes, but machinery upkeep, etc....

    Mine is $2,000 for insurance, $2,000 for advertising, and gas costs. Very little machanical problems (knock on wood) worth mentioning. No payroll, excluding taxes, no rental site for equipment, and maybe $500 for professional fees.

    So aside from what I pay for payroll, I'm thinking I can do business at $80k for expenses of $4,500-$10,000 exluding payroll. $80k - $10,000 max - $13,500 payroll (approx) = $56,500 before taxes. I just can't see him making that little on $80,000. What do you think expenses should be for that amount of money?

    I know this is a little pie in the sky, but come and dream with me for a minute....
  2. 2 man crew

    2 man crew LawnSite Senior Member
    Posts: 403

    1/3 total with payroll
  3. parkwest

    parkwest LawnSite Senior Member
    Posts: 678

    Does anyone know how to play this game yet?
  4. Randy Scott

    Randy Scott LawnSite Bronze Member
    Posts: 1,915

    Your question is impossible to answer. Every single person on this site has an exclusive situation to themselves. There are no average or common numbers for this question.

    I'm sure ones expenses can range from minimal, to hundreds of thousands. Maybe you need to ask what are one-man operations expenses for the year. Then find out how much and what equipment they have. How much their spouse makes, (if they have one), and what their personal standard of living is. Do they have new vehicles? Do they own a home or rent? Is the home new or old? See where I'm going with this. Maybe I misunderstood your question, but as far as I can tell, you can't get an answer that would even apply to you or anyones particular situation. Meaning there are about a million variables. According to our records and bookeeping, our expenses were over 200K this year.
  5. wriken

    wriken LawnSite Silver Member
    Posts: 2,154

    my expense was about 40,000.00 before payroll. that included a new ztr, and a 92 f-250 diesel. Exp. I spent 3800.00 in diesel fuel alone. hope that helps, but everyone will be differant, this is what I turned into the accountant. that did'nt include the race team expense.
  6. specialtylc

    specialtylc LawnSite Bronze Member
    Posts: 1,656

    I had expenses of $197,000.00+ as reported on my income tax return.
  7. scott's turf

    scott's turf LawnSite Senior Member
    from NH
    Posts: 949

    I think you are dreaming. You could maybe be close to that in one year but you have to buy equipment eventually. My little business grosses around $40k and we have about $10k in expenses not including payroll.

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