3 Year-End Money Checks Every Auto Shop Needs [E247]
Thanks to our partners Promotive, WickedFile, and Overdryve
Do you know what you’ll owe the IRS this spring, or are you hoping the number shrinks on its own? Are you planning to grow from $1.5 million to $1.8 million next year with the same labor rate and the same crew? And if your overhead goes up 5% whether you like it or not, what happens to a shop that keeps its prices flat?
In this solo episode, Hunt Demarest, CPA with Paar Melis & Associates, explains why November is the easiest month of the year to review your books. Once October closes, you have ten months of real numbers and only two left to estimate. That makes now the right time for a tax estimate. But the estimate is only as good as the books behind it. Unbooked interest, missing leases, inflated inventory and overstated receivables can all throw off the result, and you still have time to fix them.
Next, Hunt walks through building a 2027 budget step by step. Sales growth has to come from a higher labor rate, more production, or both. A 20% jump with flat prices and the same team won’t add up. He shares how one client’s projections caught a pay plan that would have doubled a general manager’s pay on a 20% sales increase, while it was still an easy conversation. He explains why overhead should rise no more than 5%, and why skipping a labor rate increase means you take home less even when sales hold steady. He ends with his favorite November shortcut: divide your year-to-date numbers by ten, and the months that ran high stand out right away.
Whether your books are spotless or you haven’t opened a P&L since spring, this episode gives you a clear plan for the last two months of the year.
What You’ll Learn…
00:00 Intro
04:46 Why November tax estimates work
05:33 Which camp are your books in?
07:53 Plan for your tax bill
09:47 Build your 2027 budget
13:38 Where 20% growth comes from
15:36 Plan three scenarios
16:15 The pay plan that almost backfired
17:44 Forecast your hiring path
19:13 Outrun your overhead
21:15 The divide-by-ten shortcut
22:43 Spot the outlier month
If you’re ready to get an honest tax estimate before December, build a 2027 budget backed by real math, and catch the overhead line that ran hot in October, this episode is essential listening.
Webinar Link & Passcode
Link:
Passcode: L03+q93F
Thanks to our partner, Promotive
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 info.gopromotive.com/hunt
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/
Thanks to our partner, Overdryve AI
Overdryve is your AI-powered marketing operating system. It predicts slow weeks before they happen, automatically launches revenue-driving campaigns, tracks ROI down to the dollar, and optimizes performance in real time. Demo the Marketing Intelligence Platform at https://getoverdryve.ai/
Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Email Hunt: podcast@paarmelis.com
Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0
Download a Copy of My Books Here:
- Beyond the Bays: A Financial Playbook for Auto Repair Shop Owners
- Wrenches to Write-Offs
- Your Perfect Shop
The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/
Download and Listen on Our Mobile App: https://automotiverepairpodcastnetwork.com/app/
Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion
Automotive Field Theory with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life.
The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix – Auto Shop Coaching.
Speak Up! Effective Communication with Craig O’Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size.
Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest.
The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level.