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Learn the 4 stages of a Painting Business, from startup to $3M+, and the financial tests to pass before scaling, hiring, increasing marketing spend, or building a company that can run without you.

Know Your Numbers & Save Big in Taxes,
Daniel Honan, CPA

Every episode is made for painting business owners. Follow the show so the next one downloads automatically.

FREE BOOK FOR PAINTING CONTRACTORS
Free, just cover shipping.
Get your copy here: profitablepaintercpa.com/book

WANT DANIEL TO LOOK AT YOUR NUMBERS?
Join 529+ painting contractors who know exactly where their money goes, keep more of what they earn, and scale without tax surprises.
Book a free Profit Checkup here: profitablepaintercpa.com/vsl

Prefer video? Watch this episode on YouTube

What We Discuss:
00:00 Why revenue growth doesn't always mean profitability
00:36 The 4 stages of a painting business
01:02 Startup: Proving your business model
01:46 Markup and gross profit targets
02:41 Job costing and building a cash buffer
04:00 Build stage: Managing cash flow as you grow
05:16 Hiring an admin or project manager
06:14 GP to CAC: Measuring marketing profitability
08:19 The $1M–$3M stage: Strengthening profitability
09:54 Sales compensation and improving gross profit
11:12 The $3M+ stage: Building a business that runs without you

Profitable Painter CPA – accounting and financial strategy for painting contractors. Visit us profitablepaintercpa.com

This episode was originally recorded as a video for YouTube.

If you hear me say things like “in this video” or reference visuals, don’t worry —
the content still works perfectly in audio form.

And if you ever want to watch the video version, you can find it on the
Profitable Painter YouTube channel.

https://www.youtube.com/@BookkeepingForPainters

Send us Fan Mail

When does growth pay off in a Painting Business? Daniel Honan, CPA, and Cody Hall break down the 4 stages of a painting business and what to focus on with your money at each one. In the startup stage ($0–$350K), pricing with production rates and a 50% gross profit target on residential repaints is what gets you to the next level, along with staying compliant on taxes and knowing when to consider an S corp. In the build stage ($350K–$1M), they cover hiring your first admin and production manager, what to pay each one, and when to start tax planning and getting help with your numbers. In the swamp ($1M–$3M), they get into how to pay a salesperson and why you need to track the GP to CAC ratio by marketing channel, and Daniel shares client data on profit at each stage. In the sellable asset stage ($3M+), they talk about removing key man risk, knowing what your business is worth, diversifying your net worth, and setting up a revocable living trust.

Know Your Numbers & Save Big in Taxes,
Daniel Honan, CPA

Every episode is made for painting business owners. Follow the show so the next one downloads automatically.

FREE BOOK FOR PAINTING CONTRACTORS
Free, just cover shipping.
Get your copy here: profitablepaintercpa.com/book

WANT DANIEL TO LOOK AT YOUR NUMBERS?
Join 529+ painting contractors who know exactly where their money goes, keep more of what they earn, and scale without tax surprises.
Book a free Profit Checkup here: profitablepaintercpa.com/vsl

Prefer video? Watch this episode on YouTube

What We Discuss:
01:35 The 4 stages of a Painting Business
03:11 Startup ($0–$350K): Daniel's first year
06:57 Production rate estimating
08:00 Markup: pricing for 50% gross profit
10:00 Staying compliant and the S corp election
11:35 Build ($350K–$1M): hiring an admin
13:34 Hiring and paying a production manager
16:34 Tax planning and help with your numbers
20:52 The swamp ($1M–$3M)
22:49 Profit by stage from our client data
25:33 Paying a salesperson
26:00 Gross profit and the GP to CAC ratio
29:52 Sellable asset ($3M+) and key man risk
32:45 Business value and diversifying
35:57 Estate planning: revocable living trusts

Profitable Painter CPA – accounting and financial strategy for painting contractors. Visit us profitablepaintercpa.com

This episode was originally recorded as a video for YouTube.

If you hear me say things like “in this video” or reference visuals, don’t worry —
the content still works perfectly in audio form.

And if you ever want to watch the video version, you can find it on the
Profitable Painter YouTube channel.

https://www.youtube.com/@BookkeepingForPainters

For being a loyal listener, I want to send you a copy of my new book Profitable Painter. Inside, I’ll show you the exact frameworks that have helped painting businesses save big on taxes, increase profits, and scale with confidence
Head over to profitablepaintercpa.com/book and grab your copy today. Don’t wait — this is my gift to you for being part of the Profitable Painter community.

Send us Fan Mail

Here are the tax mistakes Painting Business owners keep making. Daniel Honan, CPA, and Cody Hall break down when switching to an S corp starts to make sense, the costs that come with it (filing Form 2553, running payroll for yourself, an extra tax return, and solid bookkeeping), and why staying an LLC means paying an extra 15.3% in self-employment tax on your profit. They cover how the IRS judges a reasonable S corp salary and how to set yours from the roles you actually do, why you can pay every quarterly estimate and still owe in April, and the difference between tax planning and tax preparation. Daniel also explains when buying a truck in December can cut your taxes and what happens if you sell it in January, how to hire your kids for real, documented work (including through a sole proprietorship and a Roth IRA), and when it makes sense to put your spouse on payroll.

Know Your Numbers & Save Big in Taxes,
Daniel Honan, CPA

Every episode is made for painting business owners. Follow the show so the next one downloads automatically.

FREE BOOK FOR PAINTING CONTRACTORS
Free, just cover shipping.
Get your copy here: profitablepaintercpa.com/book

WANT DANIEL TO LOOK AT YOUR NUMBERS?
Join 529+ painting contractors who know exactly where their money goes, keep more of what they earn, and scale without tax surprises.
Book a free Profit Checkup here: profitablepaintercpa.com/vsl

Prefer video? Watch this episode on YouTube

What We Discuss:
01:40 What painting business owners get wrong about taxes
02:37 When to switch to an S corp
03:07 What an S corp costs you first
08:13 Prove your profit before you switch
10:09 Staying an LLC: self-employment tax and audits
12:31 What's a reasonable S corp salary?
14:45 Setting your salary from the roles you do
17:08 Paid quarterly and still owe?
19:05 Due dates, 1040 vouchers, and IRS2Go
22:11 Tax projections and tax planning
24:05 Buying a truck in December
26:03 Selling it in January: depreciation recapture
27:59 Hiring your kids in your painting business
32:08 Paying your kids through a sole proprietorship
34:37 Should you put your spouse on payroll?

Profitable Painter CPA – accounting and financial strategy for painting contractors. Visit us profitablepaintercpa.com

This episode was originally recorded as a video for YouTube.

If you hear me say things like “in this video” or reference visuals, don’t worry —
the content still works perfectly in audio form.

And if you ever want to watch the video version, you can find it on the
Profitable Painter YouTube channel.

https://www.youtube.com/@BookkeepingForPainters

For being a loyal listener, I want to send you a copy of my new book Profitable Painter. Inside, I’ll show you the exact frameworks that have helped painting businesses save big on taxes, increase profits, and scale with confidence
Head over to profitablepaintercpa.com/book and grab your copy today. Don’t wait — this is my gift to you for being part of the Profitable Painter community.