When breaking down a $500 ticket, setting tax aside first and pulling out direct job costs makes it easy to split up the rest.
First, set aside roughly 15% ($75) straight into a dedicated tax account so it never gets mixed in with operating cash.
Next, pull out direct job costs (COGS), which usually runs around 20% ($100) for job-specific materials, chemical supplies, fuel, and direct field labor.
From there, split the remaining gross profit into three main buckets:
Overhead (35% / $175): Covers fixed monthly expenses like CRM software, commercial insurance, marketing, shop overhead, phone bills, and routine equipment upkeep.
Capital Reserves (10% to 15% / $50): Moves into a separate savings account strictly reserved for major equipment upgrades, engine/pump replacements, vehicle repairs, and building a cash cushion for the off-season.
Owner Profit / Draw (20% / $100): Net profit margin, owner pay, and retained earnings.
Setting up four separate bank sub-accounts for taxes, operations, capital reserves, and profit, then transferring those percentages weekly, keeps the cash flow automated and predictable.
