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

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 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.

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

How to build a culture of financial discipline and transparency in pest management

The real issue is when an owner has built the company up and then hires a bookkeeper who may know how to use QuickBooks but doesn’t understand all of the reporting. So the owner thinks because QuickBooks is spitting out checks that everything is working, but their financial statements and their profit and loss is just a mess and they can’t really figure out how they’re doing. We see a lot of that. And then what’ll happen is they’ll take it to their CPA at the end of the year and he’ll have to make heads or tails of it. And usually that guy’s or gal’s view of accounting is to get a tax return done. A tax return is a small part of accounting.

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3 tips for using QuickBooks better in your pest management business

Most pest management firms are already using QuickBooks as their accounting software system of choice, but not all of them are using it optimally, according to PCO Bookkeepers partner Anthony Pepe. I talked with Anthony to get his take on what mistakes pest management professionals are making when it comes to QuickBooks, and how they can use it better. Here, he offers three tips for pest control operators to improve their use of this powerful recording and reporting tool.

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