Business By The Numbers

Am I Going to Be Audited? This week Hunt discusses if the rumors of 87,000 new IRS agents and if there is any truth to these claims and other causes of audits.• What is the IRS doing with all the new agents that they are hiring?• What increases your risks in getting audited and how can you minimize those?• What are other common types of audits and what should you do if you are ever audited?The Show is sponsored by:Shop-Ware on the web at getshopware.comNAPA Auto Care Repair Shop of Tomorrow at https://repairshopoftomorrow.comHunt Demarest, CPAPaar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online : www.paarmelis.comEmail Hunt: [email protected] a copy of my Book : Download Here

Are Techs Employees or Contractors? This week Hunt discusses if there is a way that we can or should treat our techs as contractors.What is the difference between a contractor versus an employee and how does the IRS differentiate the two?Why would someone want to be a contractor, and how would that help our techs?What are some of the downsides of classifying our techs as contractors and the reasons why we do not see this much?The Show is sponsored by:Shop-Ware on the web at getshopware.comNAPA Auto Care Repair Shop of Tomorrow at https://repairshopoftomorrow.comHunt Demarest, CPAPaar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online : www.paarmelis.comEmail Hunt: [email protected] a copy of my Book : Download Here

The gang’s all here; we have the entire Aftermarket Radio Network together for an important episode inspired by the movie Moneyball. We all have experience with people who are not our top performers, but are we better to have them on the team than not? You know them; they are consistent, reliable, steady, and contributors. Are they worth replacing? Will they become the best or top performers, or do they help strengthen our overall performance? A great discussion among your peers. Watch the Episode on YouTube Hunt Demarest, CPA, Paar Mellis and Associates, Business by the Numbers Podcast Matt Fanslow, Riverside Automotive, Red Wing, MN, Diagnosing the Aftermarket A to Z Podcast Kim and Brian Walker, Shop Marketing Pros, Auto Repair Marketing Podcast Chris Cotton, AutoFix Auto Shop Coaching, Chris Cotton Weekly Blitz Podcast Key Talking Points What REALLY contributes to production? Simpson Paradox Simon Sinec points out that Navy Seal teams value Trustworthiness far, far more than Performance. VIDEO HERE Tech productivity is one of the most important aspects of business, but how can these numbers skew what that employee is really doing (helping others, sharing duties outside of production, etc.) Are there some numbers or metrics that actually can look too good, which could cause an issue for growth or retention Numbers don’t lie, but sometimes can be misleading. Do your numbers match up with what you are trying to do with the business? You have to have your head up and eyes wide open to make sure you can identify the "doers" in your group. Do you have a scorecard for success for your technicians? Pay plans; incentive greatness Who are your ‘support people' to contribute and make the whole picture better Culture is contagious Training when hiring- Weaknesses- be honest with eachother Fine balance- profitability aspect, you can’t have a shop full of unicorns Removing obstacles Connect with the Podcast Aftermarket Radio Network Subscribe on YouTube Visit us on the Web Follow on Facebook Become an Insider Buy me a coffee Important Books Check out today's partners: Shop-Ware: More Time. More Profit. Shop-Ware Shop Management getshopware.com       Delphi Technologies: Keeping current on the latest vehicle systems and how to repair them is a must for today’s technicians. DelphiAftermarket.com

How Much is My Shop Worth? This week Hunt discusses how to figure out what your shop is worth or what a prospective shop is really worth. • What method is used to value shops and what is included in that price?• What is EBITDA and what adjustments need to be made to figure out my true net income?• What are some things that you can do to drive the value of your shop and what are things that don't increase value?The Show is sponsored by:Shop-Ware on the web at getshopware.comNAPA Auto Care Repair Shop of Tomorrow at https://repairshopoftomorrow.comHunt Demarest, CPAPaar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online : www.paarmelis.comEmail Hunt: [email protected] a copy of my Book : Download Here

Shady Service AdvisorThis week Hunt discusses an issue he came across with one of his shops and service advisors manipulating RO's to inflate gross profit.• How was this service advisor able to do this?• What are some tips for being able to stop this from happening in your shop?• What are signs or metrics that could show that this is going on in a shop?The Show is sponsored by: Shop-Ware on the web at getshopware.comNAPA Auto Care Repair Shop of Tomorrow at https://repairshopoftomorrow.comHunt Demarest, CPAPaar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online : www.paarmelis.comEmail Hunt: [email protected] a copy of my Book : Download Here

Technician Pay, Tools, and Taxes with Hunt DemarestTechnicians want to know how their personal taxes and tools purchased for work are managed on your tax return. Flat Rate vs. Salary + IncentivesTax consequencesListen To Business By the Numbers Podcast with Hunt Demarest HERE.Hunt's Company Paar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online : www.paarmelis.comThe show is sponsored by NAPA Auto Care napaautocare.comNAPA Benefits Center: napabenefitscenter.comNAPA Member Site: member.napaautocare.comEmail Matt: [email protected] the Aftermarket A - Z YouTube Channel HERE

Inflation Reduction Act - What We Know Now This week Hunt discusses what we currently know about the act currently going through congress. What is the Inflation Reduction Act, and why is it called that?What is included in the bill as we know now?What are the changes to taxes, and are those going to affect me?What are the overall impacts of the bill, and what should I be doing now to prepare?The Show is sponsored by: Shop-Ware on the web at getshopware.comNAPA Auto Care Repair Shop of Tomorrow at https://repairshopoftomorrow.comHunt Demarest, CPAPaar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online : www.paarmelis.comEmail Hunt: [email protected] a copy of my Book : Download Here

Interest RatesThis week Hunt discusses interest rates and how it is affecting your business, and personal life, and what you need to do to try and work with them. Talking Points:Why are interest rates going up, and who is making these rates increase?What is the federal reserve, and how do these changes affect inflation?What can you be doing right now to offset interest rates and still be a profitable business?What does the near future look like because of this increase in interest rates and the economy in general?The Show is sponsored by: Shop-Ware on the web at getshopware.comNAPA Auto Care Repair Shop of Tomorrow at https://repairshopoftomorrow.comHunt Demarest, CPAPaar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online : www.paarmelis.comEmail Hunt: [email protected] a copy of my Book : Download Here

Inflation.This week, Hunt discusses inflation, how it affects your business and personal life, and what you need to do to try and work with it. • What is inflation, and how is it calculated?• What is causing the high inflation that we are seeing today?• What can you be doing right now to offset inflation and still be a profitable business?• What does the near future look like because of this inflation and the economy in general?

Tax PlanningThis week Hunt discusses the importance of tax planning and some tips to save you money. • When should I start tax planning and how often should you update this?• Do I have to make estimated tax payments?• What are the best ways to save taxes?• What are some common mistakes or bad ideas when trying to minimize taxes?The Show is sponsored by: Shop-Ware on the web at getshopware.comNAPA Auto Care Repair Shop of Tomorrow at https://repairshopoftomorrow.comHunt Demarest, CPAPaar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online : www.paarmelis.comEmail Hunt: [email protected] a copy of my Book : Download Here

Handling Big PurchasesThis week Hunt discusses the different ways to finance large purposes and how that changes the tax treatment?• Should I buy or lease my equipment and does that affect my taxes?• How are different kinds of leases taxed?• What kind of car will get me the most tax savings?• What kind of improvements to my real estate am I allowed to write the entire amount off?The Show is sponsored by: Shop-Ware on the web at getshopware.comNAPA Auto Care Repair Shop of Tomorrow at https://repairshopoftomorrow.comHunt Demarest, CPAPaar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online: www.paarmelis.comEmail Hunt: [email protected] a copy of my Book : Download Here

Entity Choices - Taxation and Legal Protection• What is the difference between a Corporation, LLC and Sole Proprietor?• What are my options for taxation for a LLC?• How should I setup my real estate entity and why is it important to have that in a LLC?• How should I setup my loaner car LLC... or should I?The Show is sponsored by: Shop-Ware on the web at getshopware.comNAPA Auto Care Repair Shop of Tomorrow at https://repairshopoftomorrow.comHunt Demarest, CPAPaar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online : www.paarmelis.comEmail Hunt: [email protected] a copy of my Book : Download Here

Value Pricing with Rob Nixon. This week Hunt sits down with Rob Nixon, the premiere coach and consultant for accounting firms. We got into a number of topics that are relevant for any kind of business owner. Some of the same things that he teaches accounting firms is the kind of philosophies that I talk with my shops as well.I think that his knowledge and expertise is always right on point and common sense ideas that everyone needs to hear. The Show is sponsored by: Shop-Ware on the web at getshopware.comNAPA Auto Care Repair Shop of Tomorrow at https://repairshopoftomorrow.comHunt Demarest, CPAPaar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online : www.paarmelis.comEmail Hunt: [email protected] a copy of my Book : Download Here

CryptocurrencyThis week Hunt discusses the different ways that crypto is taxed and what to be aware of if you are buying and selling or accepting crypto as payment.• How does buying and selling crypto get taxed?• Are my losses deductible?• What happens when you trade one coin for another or if you are mining them yourself?The Show is sponsored by: Shop-Ware on the web at getshopware.comNAPA Auto Care Repair Shop of Tomorrow at https://repairshopoftomorrow.comHunt Demarest, CPAPaar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online : www.paarmelis.comEmail Hunt: [email protected] a copy of my Book : Download Here

S-Corp Owners Distributions and Pay. This week Hunt discusses the differences between S-Corp wages and draws and how to maximize to your advantage.• What are S-Corp Wages and how much should I pay myself?• How much in draws should I take?• What are the tax benefits of changing the way that you pay yourself?The Show is sponsored by: Shop-Ware on the web at getshopware.comNAPA Auto Care Repair Shop of Tomorrow at https://repairshopoftomorrow.comHunt Demarest, CPAPaar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online : www.paarmelis.comEmail Hunt: [email protected] a copy of my Book : Download Here

Pass Through Entity Tax (PTET) - What You Need to KnowThis week Hunt discusses the pass-through entity tax that has become more common and was a big issue during this year's tax season.• What is Pass-Through Entity Tax?• Who is eligible to pay this?• Why would someone elect to use the pass-through entity tax and what are the tax savings?• How do I set up the Pass-Through The Show is sponsored by: Shop-Ware on the web at getshopware.comNAPA Auto Care Repair Shop of Tomorrow at https://repairshopoftomorrow.comHunt Demarest, CPAPaar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online : www.paarmelis.comEmail Hunt: [email protected] a copy of my Book : Download Here Entity Tax?

EIDL - Economic Injury Disaster Loan - An UpdateHunt discusses the end of the EIDL Program and what shops should know about it as of today.• What is the EIDL Loan Program and what are the terms?• What I am allowed to use this for?• What am I not allowed to use this for? Are they any way around these rules?• Should I pay mine back or should I hang onto it?The Show is sponsored by: Shop-Ware on the web at getshopware.comNAPA Auto Care Repair Shop of Tomorrow at https://repairshopoftomorrow.comHunt Demarest, CPAPaar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online : www.paarmelis.comEmail Hunt: [email protected] a copy of my Book : Download Here

Selling Your Shop to Key Employee. This week Hunt discusses some of the options that are out there for selling your shop to a key employee and how to retain them until you are ready to sell.• Why is selling a minority share in your business a bad idea?• What selling to an internal party in your business can be a win for both the buyer and the seller?• How to structure a plan to transition to this new owner while he remains an employee?The Show is sponsored by: Shop-Ware on the web at getshopware.comNAPA Auto Care Repair Shop of Tomorrow at https://repairshopoftomorrow.comHunt Demarest, CPAPaar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online : www.paarmelis.comEmail Hunt: [email protected] a copy of my Book : Download Here

Going Multi-Location! Part 3 of the crash course on going multi-location, Hunt discusses how to take this deal home, finance and set up the purchase price.• What are the options for financing the deal and what is the most common?• How should I set up this new location? A new entity or existing? • How do I allocate the purchase price so that it gets you the most tax benefit?The Show is sponsored by: Shop-Ware on the web at getshopware.comNAPA Auto Care Repair Shop of Tomorrow at https://repairshopoftomorrow.comHunt Demarest, CPAPaar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online : www.paarmelis.comEmail Hunt: [email protected] a copy of my Book : Download Here

Going Multi-Location Part 2 - EvaluationIn part 2 of the crash course on going multi-location, Hunt discusses getting into the details of a shop and coming up with a fair price• What kind of reports should I be asking from the seller?• What should you be looking at on the financials, the good the bad, and other things that can give more insight into the business. • How to I come up with a fair price for the business based on the net income of the shop and add-backs?• How do I start the process of negotiating a possible deal?The Show is sponsored by: Shop-Ware on the web at getshopware.comNAPA Auto Care Repair Shop of Tomorrow at https://repairshopoftomorrow.comHunt Demarest, CPAPaar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online : www.paarmelis.comEmail Hunt: [email protected] a copy of my Book : Download Here

Going Multi-Location - Part 1of the crash course on going multi-location.Hunt discusses some of the basics of starting the process of going multi-location. • What should I be doing in my shop now?• How do I find prospective shops for sale?• What kinds of things should I be looking for in the shop and asking of the seller?• Should you start one fresh or should you buy an existing shop?The Show is sponsored by: Shop-Ware on the web at getshopware.comNAPA Auto Care Repair Shop of Tomorrow at https://repairshopoftomorrow.comHunt Demarest, CPAPaar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online : www.paarmelis.comEmail Hunt: [email protected] a copy of my Book : Download Here

Employee Retention Tax Credit (ERTC) and R&D Credit. This week Hunt discusses some tax credits that are being pushed to business owners recently. • What is the ERTC and do I qualify for it?• How do I know if I qualify and are there different things to look at with this credit?• What is the R&D Tax Credit?• What kinds of things do I need to be doing in order to qualify for this credit?The Show is sponsored by: Shop-Ware on the web at getshopware.comNAPA Auto Care Repair Shop of Tomorrow at repairshopoftomorrow.comHunt Demarest, CPAPaar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online : www.paarmelis.comEmail Hunt: [email protected] a copy of my Book : Download Here

Retirement Options and Tax AdvantagesThis week Hunt discusses some of the options that are out there for retirement and how they can be the best tax deduction for you.• What kind of retirement options are out there, business and personal.• How do I fund these retirement accounts and what kind of tax savings will this give me?• What retirement account is right for me and my business?• What are the maximum amounts that I can fund and what are my options if I have exhausted all the classical options in retirement?The Show is sponsored by: Shop-Ware on the web at getshopware.comNAPA Auto Care at https://www.napaonline.com/en/auto-careHunt Demarest, CPAPaar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online : www.paarmelis.comEmail Hunt: [email protected] a copy of my Book : Download Here

TaxTips and Common Questions. This week Hunt discusses some of the most commonquestions and issues that come up during tax season.•What is an extension and why do you file one? Is it the right move or are youcosting yourself money?• What is Section 179 Expense? When should you use it and what can qualify for accelerated depreciation?• What are tax brackets and how is different kinds of income taxed?• How do your distributions get taxed from your business and do your distributions even effect your taxes?The Show is sponsored by:Shop-Ware on the web at getshopware.comNAPA Auto Care at https://www.napaonline.com/en/auto-careHunt Demarest, CPAPaar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online : www.paarmelis.comEmail Hunt: [email protected] a copy of my Book : Download Here

Profitability & Key Metrics with Patrick McHugh of Bimmer Rescue. This week Hunt sits down with Patrick to discuss his philosophy on driving profits and how he keeps his business moving in the right direction.• What metrics should you be using to guide your day to day business• Why it is important to track KPI and trends regularly versus finding out after the fact that you missed the mark.• How to set up a business that not only drives profits but sets a strong foundation in team culture, community involvement, and positivity. The Show is sponsored by Shop-Ware on the web at getshopware.comHunt Demarest, CPAPaar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online : www.paarmelis.comEmail Hunt: [email protected] a copy of my Book : Download Here

Managing Fraud - Hunt Demarest - Business by the Numbers 006This week Hunt discusses common areas of fraud, why it happens and what we can do to stop it. Key talking points:• What is fraud and how common is it in small businesses• What are signs of fraud and how can we spot clues that could warn you before fraud happens.• What can you be doing in your shop right now to minimize your risk of fraud.The Show is sponsored by Shop-Ware on the web at getshopware.comHunt Demarest, CPAPaar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online : www.paarmelis.comEmail Hunt: [email protected] a copy of my Book : Download Here

Recorded at Vision KC 2022Tech Training with Travis Troy. This week Hunt sits down with Travis Troy of Honest Wrenches in IA. We cover a lot of great topics including:• Why tech training is so important and why the cost of training and even shutting down your shop works in your favor. • What Travis has learned from starting a shop in a storage unit to creating 2 extremely successful shops. • Talk about the struggles that he has managing and running the shops and how he is constantly learning himself. test

Tech Productivity. Hunt takes a dive into the numbers behind tech productivity and how it affects your bottom line.• What is tech productivity and why do I care?• How do I measure tech productivity for my shop?• How different are sales for a super productive technician compared to an unproductive technician?• What is the theoretical max sales of my shop based on my production staff?test

Advertising Expense Review and BudgetHunt discusses how to analyze and alter your advertising budget to drive real results that you need.• How much money should your shop be spending on advertising?• Does the type of advertising needed dictate the budget?• How to figure out a break-even analysis for dollars spent on advertising.• Does my current advertising budget match up with my goals of shop performance. test

Common Financial Issues. Hunt discusses the common issues that he sees when starting to look at a shop's financials. • Why don’t you understand your financials? Maybe it’s because they don’t make sense to anyone!• Do your financials match your Shop Management System (SMS)? How do we fix it if they do not?• How to analyze Parts Margin discrepancies and fix them.• Eliminating variables from financial statements. test

Hunt Demarest Podcast Launch - Episode 1 with Carm CapriottoHunt's podcast will provide a core understanding of the financial aspects of running an auto repair shop.The latest show from the Aftermarket Radio NetworkHunt and Carm talk about their collaboration to launch this inaugural episodeHunt Demarest, CPA has consistently provided his financial business acumen to help move the industry toward greater heights of success and profitability. Hunt was recently referred to as a "terrific advocate of the aftermarket."He is the author of the book, Your Perfect Shop: How to Start, Run & Sell a Profitable Shop. In this book, he compiled some of the best practices for auto repair shop owners, whether they are just starting or have been in the business for years. Get a copy below.test