• CA Lessons: Landscaping To Reduce Wildfire Risk
    While there are no ways to fireproof a property, there are strategies to design and maintain landscapes for reduced vulnerability. Click here to learn more.

Income/Expense ratio?

thelawnguy

LawnSite Silver Member
Location
Central CT
Wondering what everyones expenses as a percentage of gross income were last year (before taxes)?

My preliminary numbers from 2000 show my expenses for lawncare/snowplowing combined were 23 per cent of my total gross income. So I kept 77 per cent of the money handed to me. My goal this year is to get that number under 20 per cent.
 

Greenkeepers

LawnSite Senior Member
Location
NE Ohio
When you say expenses are you talking Cost of Goods sold as well. If so you run a pretty tight ship. Being an accountant I always look at profit margin, that is net income compared to sales. For the year ending we were at approximately 54%. I think the industry average is in the mid 20's so I think we did pretty well.
 
OP
T

thelawnguy

LawnSite Silver Member
Location
Central CT
Originally posted by Greenkeepers
When you say expenses are you talking Cost of Goods sold as well. If so you run a pretty tight ship. Being an accountant I always look at profit margin, that is net income compared to sales
Of course! Expenses are just that. But being an accountant, I can see why you would ask, what with all that creative stuff and all ;) ... LOL...

A related story:

My friend saw his accountant yesterday to do his quarterly taxes, he had a good fall and also a handsome liability but lo, he had no money to pay the IRS so his accountant told him, have a seat, hocus pocus, no more liability, what have we here, ooppps, its a loss for the quarter how did I miss that...sad part is, somebody else is going to have to grab their ankles to make up for that tax revenue he "suddenly" didnt have to pay.

Ill put the soapbox away now, and quit my rant...
 

Scraper

LawnSite Bronze Member
Location
SE Pennsylvania
Gotta love a good CPA. I haven't done my taxes in years and don't mind signing my name next to theirs on my return knowing that they'll be answering the questions if any arise.
 
Top