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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

Send us Fan Mail

Why do $1M painting businesses feel broke? Daniel Honan, CPA, and Cody Hall break down where the cash goes as you grow and the painting business cash flow rules that fix it. They walk through the four stages of a painting business and why owner pay drops in the $1M–$3M stage, how to grow on your customer's money instead of debt with deposits of 50% or more where your state allows, progress payments on jobs over a week, and 30–90 day vendor terms, and the minimum bank balance Daniel gives clients: two months of overhead. They also cover what to check when the P&L says profitable but the account is near zero, and why owners past $3M should start moving wealth out of the business, including two real estate tax strategies.

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
Cody runs his businesses on the cash flow rules in it.
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 feels broke
01:50 Where the cash goes when you grow
04:15 The four stages of a painting business
09:18 Debt or your customer's money
10:10 Get paid faster, slow down what goes out
15:38 Profitable on paper, bank at zero
18:30 How much cash to keep in the bank
23:07 The $3M+ stage and real estate 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

3 Advanced Tax Strategies for Painting Business Owners with more than $400K in taxable income.

Work with us
https://profitablepaintercpa.com/vsl

Free Book - Profitable Painter
https://profitablepaintercpa.com/book

In this episode, I walk through the advanced strategies using real stories from painting business owners we've worked with: what comes after maxing out your 401(k), how real estate losses can legitimately offset painting business income, and how your business can pay you to use your home for meetings without that money becoming taxable.

These strategies aren't for everyone, and every one of them has rules that decide whether it works or backfires.

I'm Daniel Honan, CPA and former painting business owner. Since 2016, my firm, Profitable Painter CPA, has helped 529+ painting contractors with bookkeeping, taxes, payroll, automations, and financial strategy.

WHAT YOU'LL LEARN
- The retirement plan that can shelter far more than a 401(k), and the kind of business it actually fits
- Why most rental losses can't touch your painting business income, and the exception that can
- The two tests a short-term rental has to pass before its losses become usable
- The one thing the owner's spouse did that made the real estate strategy hold up
- How to turn the family and friends who already advise you into a legitimate business deduction
- How your business can pay you rent for your home, and why the rate and the records decide whether it's tax-free
- What "documented" actually means for each of these strategies, and what happens when it isn't

🎯 Past $3M in revenue and want tax planning built around your business, your team, and your long-term goals?

Book a free call: https://profitablepaintercpa.com/vsl

WHO I AM
My name is Daniel Honan. I'm a CPA, a former painting business owner, and the founder of Profitable Painter CPA - an accounting firm that works exclusively with painting contractors. I make these podcasts to help painters keep more of what they earn and build more profitable businesses.

Subscribe for weekly podcasts on taxes, bookkeeping, accounting, and financial strategy for painting businesses.

Keywords: painting business, painting contractors, tax strategies for business owners, advanced tax planning, cash balance plan, defined benefit plan small business, retirement plan for business owners, short term rental tax loophole, cost segregation study, real estate losses offset business income, passive activity rules, material participation, Augusta rule, board of advisors tax deduction, home rental to business, high income tax strategies, painting business taxes, Profitable Painter

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

What Painting Businesses actually earn at each stage of growth?

Work with us
https://profitablepaintercpa.com/vsl

Free Book - Profitable Painter
https://profitablepaintercpa.com/book

In this episode, I break down what painting companies really make at four stages of growth: startup (under $350K), build ($350K–$1M), the swamp ($1M–$3M), and sellable asset ($3M+).

I pulled the year-to-date numbers for 230 real painting businesses and measured three things — gross profit, discretionary earnings, and net profit — at every stage.

The shape of the data surprised me: every major profit number falls as companies grow, bottoms out in one specific stage, and then recovers.

By the end of this episode, you'll be able to compare your company to 230 real painting businesses and see exactly where you stand, and why your position inside your stage may matter more than the stage itself.

I'm Daniel Honan, CPA and former painting business owner. Since 2016, my firm, Profitable Painter CPA, has helped 529+ painting contractors with bookkeeping, taxes, payroll, automations, and financial strategy.

WHAT YOU'LL LEARN

• What a painting business at your revenue level should actually be earning - benchmarked against 230 real companies
• Which stage of growth is the least profitable in the data, and why it isn't permanent
• Why gross profit falls as painting companies grow - and what that decline costs at $2M in revenue
• The reason growing revenue doesn't always make the owner feel richer
• What share of painting businesses were losing money this year, stage by stage
• Why two companies at the same revenue can differ by more than $100,000 in gross profit
• The first thing to fix if you're stuck between $1M and $3M
• How to tell whether your gross profit can carry the team you've built

🎯 Want to see exactly where your painting business sits against these benchmarks, and what it would take to move up? That's what we do.

Book a free call: https://profitablepaintercpa.com/vsl

WHO I AM
My name is Daniel Honan. I'm a CPA, a former painting business owner, and the founder of Profitable Painter CPA - an accounting firm that works exclusively with painting contractors. I make these podcasts to help painters keep more of what they earn and build more profitable businesses.

Subscribe for weekly podcasts on taxes, bookkeeping, accounting, and financial strategy for painting businesses.

Keywords: painting business, painting contractors, painting business profit margin, painting business benchmarks, how much do painting businesses make, painting company profit, gross profit margin painting, net profit painting business, discretionary earnings, owner earnings painting business, painting industry data, painting business stages, the swamp painting business, scale a painting business, painting business overhead, job costing painting, small business profitability benchmarks, Profitable Painter

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

What is a Painting Business Actually Worth?

Work with us
https://profitablepaintercpa.com/vsl

Free Book - Profitable Painter
https://profitablepaintercpa.com/book

In this episode, I break down real listings, completed sales, and SBA-funded acquisitions by revenue band, and why two companies with the same revenue can sell for wildly different prices.

I also analyzed real painting business asking prices, completed transactions, and SBA-funded ownership changes to answer the questions every owner eventually asks:

What do painting businesses actually go for, what multiple are buyers paying, and what makes one company worth significantly more than another?

I'm Daniel Honan, CPA and former painting business owner. Since 2016, my firm, Profitable Painter CPA, has helped 529+ painting contractors with bookkeeping, taxes, payroll, automations, and financial strategy.

WHAT YOU'LL LEARN
- What painting businesses in each revenue band actually sold for, not just what sellers asked
- How seller discretionary earnings (SDE) is calculated, and why it (not revenue) sets your price
- Why a business with the same revenue as yours could sell for double the price
- Which revenue band saw the strongest sold multiple in the data (it's not the biggest one)
- The margin trend that quietly works against larger businesses at sale time
- Whether buyers pay a premium for commercial and industrial companies and how much
- Franchise vs. independent: which one buyers are actually paying more for
- How much SBA acquisition capital has entered the painting industry since 2019, and what that means for your exit

🎯 Thinking about selling your painting business in the next few years or want it worth more whether you sell or not?

Book a free call: https://profitablepaintercpa.com/vsl

WHO I AM
My name is Daniel Honan. I'm a CPA, a former painting business owner, and the founder of Profitable Painter CPA - an accounting firm that works exclusively with painting contractors. I make these podcasts to help painters keep more of what they earn and build more profitable businesses.

Subscribe for weekly podcasts on taxes, bookkeeping, accounting, and financial strategy for painting businesses.

Keywords: painting business, painting contractors, painting business valuation, how much is my painting business worth, sell a painting business, buy a painting business, business valuation multiple, seller discretionary earnings, SDE multiple, what is my business worth, small business sale price, SBA loan business acquisition, franchise vs independent, commercial painting business value, painting business for sale, exit planning small business, business broker painting, Profitable Painter

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