Thanks to our partners Promotive and Wicked File

Are you leaving money on the table before the tax year closes?

In this end-of-year episode of Business by the Numbers, Hunt Demarest, CPA with Paar Melis & Associates, walks through the essential tax moves shop owners must make before December 31st and the costly assumptions that lead many to overpay the IRS.

From retirement contributions and HSA hacks to equipment purchases, inventory write-downs, and why your accounts receivable might be lying to you, Hunt explains how small oversights can snowball into massive tax bills. More importantly, he shows you exactly what to check, adjust, and document now to ensure you only pay what you owe and not a dollar more.

If you’ve ever wondered whether to buy equipment before year-end, how to handle unpaid invoices, whether your payroll timing affects deductions, or how to set yourself up for a smoother tax season, this episode gives you the playbook.

Ideal for shop owners, bookkeepers, and managers who want to tighten their financials, avoid costly mistakes, and maximize deductions before the year closes.

What you’ll discover…

(02:10) The repetitive tax mistakes and how to avoid them

(03:45) Why retirement contributions are Hunt’s “favorite deduction.”

(06:35) How much you can contribute to SIMPLE IRAs and 401(k)s before Dec. 31

(09:25) Why Roth contributions don’t reduce your taxes (and when to use them)

(10:30) The HSA contribution rules and how they can reimburse old medical bills

(14:05) HSA vs. FSA: The real difference and how not to lose your money

(16:10) The truth about deducting equipment — cash vs. financing vs. leasing

(18:30) Major building improvements you can now deduct in year one

(19:40) How to structure employee gifts, bonuses, and reimbursements

(22:30) Four big things to keep an eye on to ensure maximum savings

(25:16) Accounts payable: how missing December bills inflate your taxes

(28:00) The most overlooked deduction in high-interest years

(29:00) The fastest way to speed up your tax return (and avoid April chaos)

Thanks to our partner Promotive

It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit https://gopromotive.com/

Thanks to our Partner WickedFile

Turn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/

Paar Melis and Associates – Accountants Specializing in Automotive Repair

Visit us Online: www.paarmelis.com

Email Hunt: podcast@paarmelis.com

Text Paar Melis @ 301-307-5413

Download a Copy of My Books Here:

• Wrenches to Write-Offs
• Your Perfect Shop

The Automotive...

Thanks to our partners Promotive and Wicked File

What would it take to double your shop’s success? I.e., 200% of your current sales, gross profit, and net profit?

In this special 200th episode of Business by the Numbers, Hunt Demarest, CPA at Paar Melis & Associates, breaks down the math, mindset, and milestones behind scaling your shop’s numbers without burning out your team or outgrowing your facility too soon.

From practical examples to real-world projections, Hunt shows you how to build a realistic roadmap for growth. Whether it’s raising your labor rate, boosting productivity, or understanding how small compounding changes translate to massive results, you’ll see that doubling your profit doesn’t always mean doubling your workload.

By the end, you’ll know how to forecast, plan, and execute your own “Road to 200” — step by step.

Ideal for shop owners and managers who are ready to scale their business with data-driven, sustainable growth strategies.

What you’ll discover…

(02:30) The difference between doubling your numbers and a “200% increase.”

(04:20) Increase your prices or increase your production?

(06:15) What happens when you try to double sales purely through pricing?

(07:15) How to plan realistic, incremental labor rate increases year over year

(15:25) When your shop’s size, staffing, and space become limiting factors in growth

(18:15) The hidden compounding effect between pricing and productivity

(19:10) Why gross profit is more important than sales (and how to double it)

(21:30) How doubling sales can more than double your profit if your team is efficient

(28:45) Why cutting expenses rarely doubles profit (and what to do instead)

(34:00) The compounding math behind raising prices and productivity together

Thanks to our partner Promotive

It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit https://gopromotive.com/

Thanks to our Partner WickedFile

Turn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/

Paar Melis and Associates – Accountants Specializing in Automotive Repair

Visit us Online: www.paarmelis.com

Email Hunt: podcast@paarmelis.com

Text Paar Melis @ 301-307-5413

Download a Copy of My Books Here:

• Wrenches to Write-Offs
• Your Perfect Shop

The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/

Remarkable Results Radio Podcast...

Thanks to our partners Promotive and Wicked File

Are you rewarding your team, or paying extra taxes to do it? Could a few words on your payroll save you thousands a year?

In this episode, Hunt Demarest, CPA with Paar, Melis & Associates, explains why the difference between an allowance and a reimbursement could save both you and your employees thousands of dollars a year.

From cars and cell phones to tool truck payments, Hunt breaks down how changing just a few words on your payroll setup can turn a taxable perk into a tax-free benefit. Through clear examples and real-shop math, he reveals how to keep Uncle Sam’s cut out of your employee bonuses and put that money back where it belongs — in your business.

If you’ve ever handed out end-of-year bonuses, paid mileage, or covered employee phone bills, this episode will show you a smarter, legally compliant way to do it.

Shop owners, service advisors, and bookkeepers who want to reward staff without paying unnecessary payroll taxes.

What you’ll discover…

(02:00) How a small change in wording saves 25–30% in taxes

(04:10) Why giving an “auto allowance” is the same as providing a raise

(07:10) Cellphone allowance insights

(11:00) Tools allowance and reimbursement insights

(11:40) How a $200 tool payment becomes $150 after taxes, and how to make it a full $200 with one form

(14:10) What the IRS calls “fringe benefits” and how to use them responsibly to benefit both sides

(14:30) Turning bonuses into reimbursements so your team keeps 100% of their money

Thanks to our partner Promotive

It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit https://gopromotive.com/

Thanks to our Partner WickedFile

Turn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/

Paar Melis and Associates – Accountants Specializing in Automotive Repair

Visit us Online: www.paarmelis.com

Email Hunt: podcast@paarmelis.com

Text Paar Melis @ 301-307-5413

Download a Copy of My Books Here:

• Wrenches to Write-Offs
• Your Perfect Shop

The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/

Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion

Diagnosing the Aftermarket A to Z with Matt...

Thanks to our partners Promotive and Wicked File

Should you lease or buy your next vehicle or piece of shop equipment?

In this episode, Hunt Demarest, CPA with Paar Melis and Associates, walks through the real-world math behind leases and loans, from tax deductions to depreciation traps, so you can make decisions based on dollars and sense, not dealer pressure.

Using simple examples (from a $25K Corolla loaner car to a five-year alignment machine lease), Hunt explains why some “deals” only look good on paper and when a lease actually protects your shop from risk.

If you’ve ever wondered whether you’re saving money or just deferring pain, this episode will give you the clarity you need before you sign.

Auto shop owners, bookkeepers, and anyone making equipment or vehicle purchase decisions for their business will find this episode especially valuable.

What you’ll discover…

(02:00) The two big purchases every shop faces and why they’re treated differently

(04:25) Why buying often wins on tax deductions (and what leasing actually writes off)

(06:30) When a lease really does make sense

(09:30) Luxury vehicles vs daily drivers: How depreciation changes the math

(14:10) What equipment leases and copier contracts have in common

(14:50) The difference between operating and capital leases and why only one builds equity

(16:05) The benefits of a bank loan

(16:30) The real cost of leases and why you can’t save by paying them off early

(17:50) Why people choose leases

(18:31) Why a loan almost always beats a lease for your bottom line

Thanks to our partner Promotive

It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit https://gopromotive.com/

Thanks to our Partner WickedFile

Turn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/

Paar Melis and Associates – Accountants Specializing in Automotive Repair

Visit us Online: www.paarmelis.com

Email Hunt: podcast@paarmelis.com

Text Paar Melis @ 301-307-5413

Download a Copy of My Books Here:

• Wrenches to Write-Offs
• Your Perfect Shop

The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/

Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion

Diagnosing the...

Thanks to our partners Promotive and Wicked File

What if the biggest problems facing auto repair shops today aren’t what you think they are?

And what if the future of the industry is being shaped right now, quietly, behind the scenes, by the conversations shop owners aren’t having?

In this episode, Hunt Demarest sits down with Chris Jones, the editorial force behind Ratchet+Wrench and several of the industry’s most influential publications. From talent shortages to tech adoption, from mental health to multi-shop growth, Jones offers a clear-eyed look at where the automotive repair world is heading, and where shop owners should be refocusing their energy.

This conversation cuts through the noise and gets real about the pressures, opportunities, and evolving expectations shaping today’s shop environment.

Whether you’re struggling to hire, trying to improve efficiency, or simply looking for clarity in a rapidly changing industry, this episode will help you understand what today’s shop owners must prioritize — and how to build a healthier, more resilient business.

What you’ll discover…

(02:25) Why shops are finally catching up to retail-style convenience and technology

(03:40) The mindset difference that sets high-performing shop owners apart

(05:25) The MSO lesson that surprised everyone — and why process beats everything

(07:45) The efficiency challenges shop owners can’t stop talking about

(08:50) Why technician shortages aren’t unique to auto repair — and what must change

(10:25) The shocking reality of six-figure tech jobs no one is filling

(12:20) What 2025 really looked like for shops — and what 2026 may bring

(15:10) How understanding neurodivergence can transform shop culture and performance

(17:55) What customers actually want now: speed, communication, and clear expectations

(21:25) Chris’s best advice for shop owners navigating today’s challenges

Thanks to our partner Promotive

It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit https://gopromotive.com/

Thanks to our Partner WickedFile

Turn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/

Paar Melis and Associates – Accountants Specializing in Automotive Repair

Visit us Online: www.paarmelis.com

Email Hunt: podcast@paarmelis.com

Text Paar Melis @ 301-307-5413

Download a Copy of My Books Here:

• Wrenches to Write-Offs
• Your Perfect Shop

The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/

Thanks to our partners Promotive and Wicked File

How much does it really cost your shop to win a new customer, and is it worth it?

Most shop owners don’t realize they’re spending hundreds, sometimes thousands of dollars just to bring in a single new face, and in some cases, they’re losing money on every “win.”

In this episode, Hunt Demarest, CPA with Paar Melis and Associates, breaks down the real cost of customer acquisition and why understanding Customer Acquisition Cost (CAC) and Lifetime Customer Value (LTV) can make or break your business.

Hunt exposes the hidden math behind flashy ad campaigns that fail to pay off, showing how every dollar spent should be tied to measurable, long-term value.

Whether you’re trying to grow your car count or cut wasted marketing spend, this episode will help you see what your customers are truly worth and how to make every one count.

What you’ll discover…

(00:15) Why CAC and LTV are key to making sense of your marketing spend

(02:30) Why percentage-based ad budgets often fail auto repair shops

(05:05) What happens when you expect your ads to “pay off in one visit”

(07:10) How to calculate Customer Acquisition Cost

(11:15) Understanding Lifetime Customer Value

(16:20) Analyzing CAC and LTV for smarter business decisions

(20:20) Proven strategies to improve CAC and LTV in your shop

(24:35) Why word-of-mouth shops can have zero acquisition cost and massive lifetime value

Thanks to our partner Promotive

It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit https://gopromotive.com/

Thanks to our Partner WickedFile

Turn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/

Paar Melis and Associates – Accountants Specializing in Automotive Repair

Visit us Online: www.paarmelis.com

Email Hunt: podcast@paarmelis.com

Text Paar Melis @ 301-307-5413

Download a Copy of My Books Here:

• Wrenches to Write-Offs
• Your Perfect Shop

The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/

Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion

Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on...

Thanks to our partners Promotive and Wicked File

“How much should I actually spend on advertising?”

In this week’s episode of Business by the Numbers, Hunt Demarest, CPA with Paar Melis & Associates, tackles one of the most misunderstood questions in the auto repair world.

You’ve probably heard the “3–6% rule” a hundred times, but Hunt pulls back the curtain on why that simple percentage can mislead shop owners. Whether you’re a small shop trying to grow or an established business struggling to see ROI from your marketing spend, this episode helps you rethink the way you budget, measure, and analyze your advertising dollars.

From Google Ads to billboards, Hunt explains why advertising isn’t a one-size-fits-all formula — and why your shop’s biggest problem might not be marketing at all, but a broken funnel.

What you’ll discover…

(00:11) How to calculate an effective advertising budget for your auto repair shop.

(02:24) Why the “3–6% Rule” doesn’t fit every business.

(04:49) Why early-stage shops must break the “percentage of sales” mindset.

(06:58) The hidden problem: when production is your real bottleneck, not car count.

(09:22) The importance of setting specific car-count goals and measurable expectations.

(11:39) How to judge ROI beyond percentages

(14:01) Customer lifetime value and acquisition costs

(16:19) Translating advertising into car count — and why tracking your leads properly can reveal your real ROI.

(18:45) When to cut or double down

(21:06) Stop relying on your marketing company’s numbers

(23:17) Why location, reputation, and repeat customers change everything

Thanks to our partner Promotive

It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit https://gopromotive.com/

Thanks to our Partner WickedFile

Turn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/

Paar Melis and Associates – Accountants Specializing in Automotive Repair

Visit us Online: www.paarmelis.com

Email Hunt: podcast@paarmelis.com

Text Paar Melis @ 301-307-5413

Download a Copy of My Books Here:

• Wrenches to Write-Offs
• Your Perfect Shop

The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/

Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion

Thanks to our partners Promotive and Wicked File

In this episode of Business by the Numbers, Hunt Demarest of Paarmelis & Associates breaks down one of the most misunderstood metrics in the automotive repair world: effective labor rate.

Many shop owners chase “higher door rates,” but as Hunt reveals, that number often has little to do with your actual profit. From oil changes to state inspections, he explains how small pricing decisions can quietly eat away at your margins—and how to fix them.

If you’ve ever asked, “What percentage should my effective labor rate be compared to my door rate?”—this episode is your wake-up call.

Hunt also shares how two shops charging wildly different rates can end up with the same revenue, why discounting can destroy profitability, and what you should really track to make more money without working harder.

What you’ll learn

(01:20) “What’s a good percentage for effective labor rate?”

(02:10) Why a 75% effective rate isn’t always bad—and why 100% isn’t always good.

(03:40) Real-world variance of top-performing shops

(04:50) Understanding how door rate differs from effective labor rate.

(05:40) The $75 oil change that’s secretly earning you just $30/hour.

(07:15) How two shops can charge the same customer price but get different profit outcomes.

(11:30) Working smarter, not harder.

(13:00) Why chasing “door rate” vanity metrics is a trap.

(16:10) Pricing and productivity—and which one you’re probably ignoring.

(17:40) How ignoring effective rates hides true performance.

(18:50) Real client case study: Texas shop struggling with low effective rate due to state inspections.

(20:00) Action steps: How to spot your low-performing categories and limit the downside.

Thanks to our partner Promotive

It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit https://gopromotive.com/

Thanks to our Partner WickedFile

Turn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/

Paar Melis and Associates – Accountants Specializing in Automotive Repair

Visit us Online: www.paarmelis.com

Email Hunt: podcast@paarmelis.com

Text Paar Melis @ 301-307-5413

Download a Copy of My Books Here:

• Wrenches to Write-Offs
• Your Perfect Shop

The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/

Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by