Frequently Asked Questions

Pest Control Business Owner Accounting Questions & Answers

Pest Control Business Accounting Tips:

PCO Bookkeepers answered many of our most common accounting and bookkeeping questions from PCO’s throughout the USA

How can an accounting firm help me grow my pest control business?

We are much more than just an accounting firm, we serve as business coaches. We provide clean accurate reports on a monthly basis. This helps owners see how well they stack up to others in the pest control industry. Since we are watching your books so carefully, we offer guidance for improving the health of the company.

How to void a check in Bill.com?

Click on the payment confirmation number of the check you would like to void in order to view the payment information. Click on the blue “Void This Payment” button in the lower right of the screen, enter the reason for voiding, and either choose to have the check reissued or the funds deposited back into the account.

What is the rule of 23?

The rule of 23 is a benchmark number that sums the growth percentage of the business and the percentage of the owner’s share of their wages and net income.

Do I need to pay sales tax in Michigan?

Sales tax only needs to be paid on what is considered tangible personal property, basically anything that isn’t affixed to the land. Labor and materials that you can’t pick up and take away are exempt.

How do I decide whether to capitalize and depreciate an asset?

Sometimes it’s a judgment call but, depending on the size of the lawn care/pest control company, it’s a good idea to set a threshold.

What are the advantages to using Bill.com?

Bill.com helps keep track of bills paid and owed by the vendor and is very user-friendly. Every time you record a bill or payment, it automatically syncs into Quickbooks. It also helps to eliminate the use of paper checks and creates a more organized payment process.

What is the difference between cash and accrual accounting?

In short, cash accounting records revenue and expenses when cash has actually been collected or paid out. Accrual accounting records revenue and expenses when sales or expenditures are incurred whether or not cash has been collected or disbursed.

For more information view Dan Gordon’s Cash Vs Accrual video 

How long after I close the month can I expect my month-end reports?

Usually 7-10 Days.
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How do I keep track of monthly transactions in Quickbooks?

You can set up a recurring payment for a specific date each month that will automatically create that transaction.

What does closing of routing software mean?

 The closing of routing software is asking to confirm if you are done entering all the invoices for the month in any service software you use such as Pestpac or Realgreen. After the closing, our accountants will log in and pull the revenue reports. Once the period is closed in many of the service software, you cannot go in and make any changes.

What is the ideal gross profit margin for my pest control business?

Pest Control companies should aim for a 50-55% gross profit margin.

What is the benefit of providing my employees with health and retirement benefits?

With the proper plan in place, the benefits provided to the employee are tax-free while the company still gets the benefit of the deduction for their cost. Also, Providing benefits to employees is advantageous because it helps them see more value for working at a particular employer. 

Pest Control Business Accounting, Bookkeeping & CFO Resources

More Resources & Articles For Pest Control Business Owners

PCT Top 100

View Daniel S. Gordon, CPA’s presentation from the 2018 PCT Top 100 Awards Ceremony and Executive Summit.

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Learn the Payroll Basics for Your Own Good!

It’s not mission-critical to your business that you understand fully how payroll works.  Yet, since a large portion of your annual expenses goes towards labor and therefore payroll taxes, it’s a good thing to understand the payroll basics and the components involved in processing and how they impact your bottom line.

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Congrats Brian Post!

The PCO Bookkeepers & Turf Books family are proud to announce that our Senior Account manager Brian Post has officially received his CPA License!

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Service Contract Tips

Sign Your Clients Up for Service Contracts.To build your business in this manner, you first have to convert your current clients to service programs. There is an art to this. Learn how to communicate the value of your program, sell the benefits, and sign them up!

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