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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.

Send us Fan Mail

Why is there never money left in your painting business? Daniel Honan, CPA, breaks down the Profit First system from Mike Michalowicz's book: every time your company gets paid, you split the money between profit, taxes, and operating expenses using percentages set in advance, instead of hoping something is left at the end of the month. He walks through why expenses tend to grow until they use everything available, the four bank accounts to open (revenue, profit, tax, and operating), how to set starting percentages from your last 12 months of numbers, and why jumping straight to a big profit percentage can empty your operating account. He also covers what to do when the operating account can't cover the bills, how to tell a timing problem from a profitability problem, a simple weekly allocation routine, rules for your profit account, and why this system manages cash but doesn't replace bookkeeping.

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 Profit First for painting businesses
00:59 Why one bank account causes problems
01:36 The 4 bank accounts to open
03:17 Setting your allocation percentages
04:38 When operating cash can't cover the bills
05:16 Your weekly allocation process
05:42 Rules for your profit account
06:07 Profit First doesn't replace bookkeeping

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

How should a Painting Business pay its Key Hires? Daniel Honan, CPA, and Cody Hall break down what a $25-an-hour painter really costs, why the admin usually comes first at 2 to 4% of revenue, and how to pay a production manager 4 to 7% of revenue with a two-thirds base and a monthly bonus tied to production, gross profit, and five-star reviews. They cover hunter and farmer salespeople and a commission split that stops discounting, why the $1M to $3M stage is the least profitable as a percentage of revenue, and why a second location usually doubles your overhead. Daniel also explains the vehicle cost check for how far you drive, which receipts the IRS looks at closely, and how a revocable living trust protects your family and your privacy.

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 growing a painting business is expensive
03:02 Key hires and the 4 stages of a painting business
03:39 What a $25/hour painter really costs you
04:52 Why the admin usually comes first
07:08 How to pay a production manager
10:53 $65K base + $35K bonus, paid monthly
12:52 Bonusing on gross profit and 5-star reviews
15:36 How to get more Google reviews
17:38 Hunter or farmer: which salesperson you need
20:47 Paying sales without rewarding discounts
22:47 When to open a second location
27:51 How far to drive for jobs: the vehicle cost check
29:56 Company cards, fuel, and internal controls
33:23 Do you need a receipt for everything?
37:00 Succession plans and revocable living trusts
43:49 "Why am I even running this business?"

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

Can you deduct Health Insurance in your Painting Business? Daniel Honan, CPA, breaks down three ways painting business owners may be able to save on taxes with health insurance. He starts with the self-employed health insurance deduction, who qualifies, and why eligibility matters more than simply turning down a spouse's plan. He then covers the special rule for S-corp owners with more than 2%, where the company pays or reimburses the premiums and reports them on the owner's W-2, plus the payroll mistake that surfaces after the last payroll of the year. Finally, he explains how an HSA paired with an eligible plan can give you a deduction, tax-deferred growth, and tax-free qualified medical withdrawals, and what to compare before choosing a plan.

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 3 ways to save on taxes with health insurance
00:49 Health insurance mistakes painters make
01:10 Level 1: the self-employed health insurance deduction
02:37 Level 2: S-corp health insurance for owners
03:17 The S-corp payroll mistake to avoid
03:47 Level 3: the HSA and its three tax benefits
05:40 Quick summary

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

How do you know if your Painting Business is actually profitable? Daniel Honan, CPA, and Cody Hall, who runs business development at Profitable Painter CPA, break down the numbers that answer it. They start with the ratio Daniel calls the key number for how your business is doing and the 3-to-1 bare minimum behind it, then move to job costing, why a job bid at 50% gross profit comes in at 35%, and the markup fix. From there they cover the close rate that signals you have room to raise prices, how often to check it, how a $15M painting company times its price increases, and the rule of three. They close with what a P&L actually shows, why it can report $35,000 in profit you never see in the bank, why clean books matter to banks and buyers, and what to do if you're years behind on your taxes.

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 your profit never matches your bank account
03:00 The key number for how your business is doing
06:07 Job costing: is each job profitable?
07:50 Why jobs never hit the gross profit you bid
10:13 "I'm already the most expensive painter"
12:29 How often to check your close rate
14:02 How a $15M painter decides when to raise prices
18:41 What a P&L shows and how often to read it
21:46 $35K profit on paper, not in the bank
26:14 Why clean books matter to banks and buyers
28:23 Taking cash off the books, and catching up on taxes

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

Should your painting business rent or own its building? Daniel Honan, CPA, breaks down the self-rental tax strategy: a separate real estate LLC buys the building, your painting company pays it the rent, and the check you already write every month builds your equity instead of somebody else's mortgage. He walks through how an SBA 504 loan can put you in a $2 million building for about $200,000 down, how a cost segregation study pulls depreciation into the early years instead of spreading it over 39 years, and why that big first-year deduction can get stuck as a passive loss while you still pay tax on the painting income. Then he explains the "dash four" grouping rule that may let the two companies be treated as one activity, why an 80/20 ownership split changes the answer, and why to plan the exit before you buy, not next April. This one is for painting business owners who are profitable, paying meaningful tax, and already need a warehouse or office.

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
Know your numbers before you take on a building.
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 Should your painting business own its building?
01:11 Set up a separate real estate LLC
01:50 Financing with an SBA 504 loan
02:43 Cost segregation and depreciation
03:36 The passive loss problem
04:21 The dash four grouping rule
05:11 Ownership rules and the exit

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