Making profit WHY?

[safeclean]

I often get asked by other cleaners on how much profit we make as we have a turn over of 2 million + a year from our 4 devisions Carpet Cleaning, Carpet Repairs, Tile Restoration and Pest Control. I tell them we are very busy making nothing but I get paid very well for it

The reason why!

We were advised by our accountant to pay ourselves ( the owners) a lot more or as much as we can afford. If we try and make a profit we get taxed at 27% of the gross profit so instead we use that profit to top up our take home pay. I get paid well to make sure my company does not make a profit.

Does that sound strange to you?

Craig

 

[Ken Snow]

Yep- accounting 101 baby.

 

[Mikey P]

so your income tax is less than your "profit tax"?

 

[safeclean]

At the end of the day it is nearly the same it just saves us paying profit tax next year. No need for an extra bill to pay which for us would be an extra $45,000 so now we add that into our take home pay.