Business By The Numbers Aftermarket Radio Network

Thanks to our partners, NAPA TRACS and Promotive
Today,
Hunt explores how to understand and improve your effective labor rate, one of the most important aspects of running a profitable auto repair shop.
Understanding Effective Labor Rate: Learn the difference between street rate and effective labor rate, and why focusing on the latter is essential.Oil Change Example: Hunt breaks down an example using oil changes to explain how effective labor rate impacts profitability.Comparison of Two Shops: Explore a real-world comparison of two similar shops with different labor rates and see which one is more profitable.Actionable Insights: Get practical tips on how to improve your shop's effective labor rate and overall profitability
Thanks to our partners, NAPA TRACS and Promotive
Did you know that NAPA TRACS has onsite training plus six days a week support?
It all starts when a local representative meets with you to learn about your business and how you run it.  After all, it's your shop, so it's your choice.
Let us prove to you that Tracs is the single best shop management system in the business.  Find NAPA TRACS on the Web at NAPATRACS.com
It’s time to hire a superstar for your business; what a grind you have in front of you. Great news, you don’t have to go it alone. 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 www.gopromotive.com.
It’s time to hire a superstar for your business; what a grind you have in front of you. Great news, you don’t have to go it alone. 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 www.gopromotive.com.
Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Email Hunt: podcast@paarmelis.com
Get a copy of my Book: Download Here
Aftermarket Radio Network

Thanks to our partners, NAPA TRACS and Promotive
In this episode, Hunt Demarest, CPA with Paar Melis & Associates, discusses the importance of regularly analyzing your financials. Learn how to effectively use daily and monthly reviews to drive your shop’s profitability and productivity.
Key Takeaways:
Daily Reviews: Focus on productivity using shop management software.Monthly Reviews: Focus on profitability using financial statements.Key Metrics: Track productivity, profitability, and parts gross profit.Scientific Approach: Identify problems, hypothesize solutions, test, and analyze outcomes.

Thanks to our partners, NAPA TRACS and Promotive
Did you know that NAPA TRACS has onsite training plus six days a week support?
It all starts when a local representative meets with you to learn about your business and how you run it.  After all, it's your shop, so it's your choice.
Let us prove to you that Tracs is the single best shop management system in the business.  Find NAPA TRACS on the Web at NAPATRACS.com
It’s time to hire a superstar for your business; what a grind you have in front of you. Great news, you don’t have to go it alone. 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 www.gopromotive.com.
Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Email Hunt: podcast@paarmelis.com
Get a copy of my Book: Download Here
Aftermarket Radio Network

Thanks to our partners, NAPA TRACS and Promotive
In this episode of Business by the Numbers, Hunt explores the benefits and considerations of owning your auto shop's real estate. Learn about financing options, affordability, and real-life examples to help you make an informed decision.
-Understand different financing options for purchasing real estate.
-Assess your shop's ability to afford property ownership.
-Learn the long-term benefits of owning your business premises.
-Real-life examples to illustrate key points.

Thanks to our partners, NAPA TRACS and Promotive
Did you know that NAPA TRACS has onsite training plus six days a week support?
It all starts when a local representative meets with you to learn about your business and how you run it.  After all, it's your shop, so it's your choice.
Let us prove to you that Tracs is the single best shop management system in the business.  Find NAPA TRACS on the Web at NAPATRACS.com
It’s time to hire a superstar for your business; what a grind you have in front of you. Great news, you don’t have to go it alone. 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 www.gopromotive.com.
Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Email Hunt: podcast@paarmelis.com
Get a copy of my Book: Download Here
Aftermarket Radio Network

Thanks to our partners, NAPA TRACS and Promotive
In this episode, Hunt explores the crucial difference between profit and cash flow. Learn why your high profits don't always translate into more cash in the bank and how to better manage your shop's finances.
Difference Between Profit and Cash Flow: Understanding why profit and cash flow are not the same and how this affects your financial planning.Accounts Receivable Impact: How the timing of your transactions can create a lag between recording a profit and actually seeing the cash.Managing Inventory: The effects of inventory purchases on your cash flow and strategies to manage it effectively.Fixed Assets and Liabilities: The impact of major purchases and financing options on your cash reserves.https://www.tn.gov/revenue/2024franchisetax.html
Thanks to our partners, NAPA TRACS and Promotive
Did you know that NAPA TRACS has onsite training plus six days a week support?
It all starts when a local representative meets with you to learn about your business and how you run it.  After all, it's your shop, so it's your choice.
Let us prove to you that Tracs is the single best shop management system in the business.  Find NAPA TRACS on the Web at NAPATRACS.com
It’s time to hire a superstar for your business; what a grind you have in front of you. Great news, you don’t have to go it alone. 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 www.gopromotive.com.
Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Email Hunt: podcast@paarmelis.com
Get a copy of my Book: Download Here
Aftermarket Radio Network

Thanks to our Partners, AAPEX, NAPA TRACS, and Automotive Management Network

'Business by the Numbers' Podcast host Hunt Demarest discusses common financial mistakes, emphasizing the importance of building long-term wealth through prudent financial management and investment. The conversation covers managing personal and business expenses, the impact of government programs, and the necessity of maintaining financial reserves.

Hunt Demarest, CPA, Paar Melis and Associates, Hunt's previous episodes HERE

Business by the Numbers Podcast



Show Notes




Watch Full Video Episode
The Brakes for Breasts initiative (00:00:01) https://www.brakesforbreasts.com/
Rich vs. Wealthy (00:03:09) The distinction between being rich and being wealthy and the financial habits of wealthy individuals.
Money Mistakes and Business Finances (00:04:55) Common money mistakes made by business owners and the importance of long-term wealth building.
Personal and Business Expenses (00:06:09) The impact of blending personal and business expenses and its effect on financial statements.
Year-End Financial Review (00:09:14) The importance of assessing business finances at the end of the year and avoiding unrealistic financial judgments.
Impact of Government Programs (00:10:33) The impact of government programs on business profitability and the potential consequences of misusing funds.
Business Trends and Demand (00:11:53) Analysis of business trends, demand, and the need for realistic profit expectations in the automotive industry.
Cash Flow Management and Reserves (00:13:59) The importance of cash flow management, emergency funds, and the role of credit lines in business financial planning.
AAPEX 2024 Registration (00:17:37) https://www.aapexshow.com/
NAPA TRACS Shop Management System (00:18:47) http://napatracs.com/
Labor Rate Tracker (00:19:53) http://LaborRateTracker.com
Managing Credit Lines (00:20:48) Discussion on managing credit lines, including the importance of using and managing credit effectively.
Cash Management and Financial Statements (00:21:49) Insights into managing physical cash, reconciling financial statements, and the importance of accountability.
Overspending and Budgeting (00:23:59) Discussion on avoiding overspending, budgeting investments, and making decisions based on return on investment.
Insurance and Protection (00:26:42) Importance of having the right insurance coverage and protecting assets and future liabilities.
Return on Sales and Advertising (00:27:46) Explaining the concept of return on sales and the importance of evaluating advertising spending based on return on investment.
Bookkeeping and Financial Timeliness (00:29:30) The impact of timely and accurate bookkeeping on business performance and decision-making.
Cash Flow and Long-Term Planning...

Thanks to our partners, NAPA TRACS and Promotive
More listener questions answered! This week is all about S Corporation tax benefits, determining fair market rent when renting property to yourself, and the details of sales tax on internal transactions. Optimize your tax strategy and enhance your business operations.
• Understanding the advantages and state-specific impacts of transitioning to an S Corporation.
• The importance of charging fair market rent to avoid future complications when selling your business.
• Clarifying the difference between sales tax and use tax for internal transactions and ensuring compliance.
• Real-life examples and answers to common tax planning and business structuring questions from listeners.
https://www.tn.gov/revenue/2024franchisetax.html
Thanks to our partners, NAPA TRACS and Promotive
Thanks to our partners, NAPA TRACS and Promotive
Did you know that NAPA TRACS has onsite training plus six days a week support?
It all starts when a local representative meets with you to learn about your business and how you run it.  After all, it's your shop, so it's your choice.
Let us prove to you that Tracs is the single best shop management system in the business.  Find NAPA TRACS on the Web at NAPATRACS.com

It’s time to hire a superstar for your business; what a grind you have in front of you. Great news, you don’t have to go it alone. 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 www.gopromotive.com.

Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Email Hunt: podcast@paarmelis.com
Get a copy of my Book: Download Here
Aftermarket Radio Network
Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Email Hunt: podcast@paarmelis.com
Get a copy of my Book: Download Here
Aftermarket Radio Network