Business By The Numbers

Thanks to our partners Promotive and Wicked FileAfter years of waiting, many shop owners are discovering that their long-anticipated Employee Retention Tax Credit (ERTC) checks may never come — and worse, some are facing IRS audits they didn’t see coming. In this week’s episode of Business by the Numbers, Hunt Demerist, CPA at Paar, Melis & Associates, breaks down the chaos behind the ERTC delays, what triggers an audit, and what every business owner should be doing right now to protect themselves.This Week, Hunt takes listeners inside the IRS’s renewed crackdown on ERTC claims. From delayed payments and disappearing credit firms to official audit questionnaires, Hunt shares real client examples, reveals the riskiest filing groups, and explains why quarter three of 2021 has become the IRS’s favorite target. He also offers actionable advice on what to do if you’re still waiting for your refund—or worse, if you’ve received an audit letter.In This Conversation:(04:10) The truth about ERTC payment delays and why checks have slowed since mid-2024 (08:35) Why the IRS is focusing on third quarter 2021 claims (13:40) How credit firms and PEO companies like BBSI became audit magnets (18:55) What the official IRS audit questionnaire looks like — and how to prepare (23:22) Key warning signs your ERTC claim could be flagged(27:10) Why smaller, direct filers are less likely to face audits (31:00) What to do (and not do) if you haven’t received your ERTC payment (35:45) Hunt’s cautious outlook for 2025 and what it means for shop financesIf you’re ready to protect your shop from ERTC chaos and stay informed on what the IRS is really doing behind the scenes, this episode is essential listening.IRS Official ERTC Audit Questionnaire: https://info.paarmelis.com/hubfs/Employer%20Response%20to%20IRS%20Document%20Request%20Form.docxThanks to our partner PromotiveIt’s time to hire a superstar for your business; what a grind you have in front of you. 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 https://gopromotive.com/Thanks to our Partner WickedFileTurn 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/Paar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop The Automotive...

Thanks to our partners Promotive and Wicked FileEvery shop owner knows the feeling — the harder you work, the less time you seem to have. But what if you could have both? In this week’s Business by the Numbers, Hunt Demerast, CPA, explores the hidden link between profit and time — and why the goal isn’t working harder, but working smarter. From understanding your “hourly rate” as an owner to identifying the difference between working in versus on your business, Hunt breaks down the real math behind sustainable success.This week, Hunt Demerast dives into one of the toughest balancing acts in business: choosing between profit and free time. Drawing on real-world examples from shop owners, Hunt reveals how to calculate your true hourly worth, where to stop trading hours for dollars, and how to reclaim your freedom without losing financial ground.In this conversation, you’ll learn:(00:00) The myth of “profit versus time”(02:20) Why owner mindset still mirrors employee logic(04:45) How to measure profit in context — sales, time, and effort(07:05) The missing metric: how long it takes to make your profit(09:25) Poor people buy things, rich people buy time(11:45) How to calculate your real hourly rate(16:25) Tracking your time: the game-changer for owners(18:40) The “work smarter, not harder” equation(21:01) Working in vs. on your business(23:23) The $10 million question: what is your time really worth?Thanks to our partner PromotiveIt’s time to hire a superstar for your business; what a grind you have in front of you. 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 https://gopromotive.com/Thanks to our Partner WickedFileTurn 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/Paar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open DiscussionDiagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica

Thanks to our partners Promotive and Wicked FileEver been charged for someone else’s part? Or failed to get a credit on a return you were sure you’d handled? You’re not alone—and those small leaks could be costing your auto shop thousands each month. This week, Hunt Demerast breaks down how to uncover where your money is really going, how to reconcile your parts purchases with your accounting, and the systems that will save your sanity (and your margins).Hunt tackles one of the most overlooked financial drains in auto repair: parts reconciliation. He explains why even the most organized shops are losing money on parts they never installed, how to calculate your “materiality threshold,” and how to spot errors before they hit your books. Whether you’re doing this manually or with a tool like Wicked File, Hunt gives you the framework to finally take control of your true parts costs.In This ConversationIf you’ve ever wondered why your parts bill doesn’t match your management report, this episode is your roadmap. Hunt shares:Why every shop, no matter how tight their systems, is losing money somewhereHow to identify when a discrepancy is worth investigatingThe most common (and costly) causes of mismatched reportsA step-by-step way to reconcile parts by vendor—and stop the losses for goodWhat You’ll Learn in This Episode(00:50) The real cost of missing or miscredited parts(03:45) Why you might need to sell a part three times to make up for one mistake(07:00) How to find your “materiality level” and stop wasting time chasing pennies(10:20) When it’s worth digging into discrepancies—and when it’s not(13:58) The biggest reporting and accounting errors shops make(16:40) How personal use and “side projects” distort your financials(18:40) Spotting red flags: theft, double billing, and incomplete tickets(21:20) Setting up systems and procedures that prevent lost profit(22:50) Why Wicked File’s AI helps you catch issues in real timeThanks to our partner PromotiveIt’s time to hire a superstar for your business; what a grind you have in front of you. 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 https://gopromotive.com/Thanks to our Partner WickedFileTurn 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/Paar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop The Automotive...

Thanks to our partners Promotive and Wicked FileEvery fall, tax season brings the same loaded question: “Can I write that off?” From flat-screen TVs to four-wheelers, the temptation to blur the line between personal and business expenses is real. But where’s the line between smart tax strategy and a dangerous gray area?This week, Hunt Demarest, CPA at Paar Melis & Associates, breaks down the myths and realities of tax write-offs. With humor, clarity, and two decades of experience, he explains what the IRS actually looks for, why “ordinary and necessary” matters more than anything, and how going too far can distort your books, risk an audit, or even tank your business valuation.In this conversation, you’ll learn how to confidently identify legitimate deductions, when to play it safe, and how to document expenses that will stand up in an audit. Whether you’re debating a truck purchase, deducting meals, or mixing vacation with a conference, Hunt shows you how to maximize tax benefits—without losing sight of the bigger financial picture.If you’re ready to stop guessing and start using the tax code to your advantage, this episode will sharpen your perspective on every business expense you make.What You’ll Learn in This Episode(00:00) The infamous question: “Can I write that off?”(02:18) Why “ordinary and necessary” are the IRS’s two magic words.(04:43) The peer problem: when shop-owner advice becomes risky.(06:54) The flat-screen and four-wheeler test—how intent changes everything.(09:11) Why write-offs save more than taxes—they protect cash flow.(11:17) Vehicles in your business: the registration rule that matters most.(15:41) Paying yourself back—how to legally reimburse tools and trucks.(17:57) Meals vs. meetings: the 50% vs. 100% deduction debate.(20:10) Turning vacations into business trips (the right way).(22:20) The dark side of deductions: audit risk and distorted books.(24:42) Why overdoing write-offs lowers your business valuation.Thanks to our partner PromotiveIt’s time to hire a superstar for your business; what a grind you have in front of you. 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 https://gopromotive.com/Thanks to our Partner WickedFileTurn 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/Paar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop Aftermarket Radio Networka...

Thanks to our partners Promotive and Wicked FileAuto shops aren’t going broke because they charge too little—they’re going broke because they’re measuring wrong. In this episode, CPA and host Hunt Demerest unpacks the gap between what your shop management system tells you and what your financials know to be true. From the hidden drag of switching techs from flat rate to hourly to the simple tweak that makes your software reflect real costs, Hunt shows you how to surface the problem (productivity vs. pricing) and correct course—before your margins get cut in half.What you’ll learn:02:20 – Expectation vs. reality: SMS shows 75% gross profit—but QuickBooks shows ~50%.04:38 – The pivot that broke the math: moving techs from flat rate to hourly + production drop.06:52 – Why unchecked hourly pay halves margins—and why it’s so hard to fix later.09:12 – “Productivity” isn’t just techs: counter, invoicing, parts, layout, communication.13:55 – Pricing sanity check: book time vs. your actual time; efficiency vs. productivity.16:04 – The core software issue: SMS assumes techs are only paid when you’re paid.18:23 – The fix: compare SMS “expected” labor cost to QuickBooks actuals and adjust: set a shop-wide uplift % or per-tech rates, include benefits, vacation, unpaid work, bonuses, aim to slightly overstate costs (~5%) so you’re pleasantly surprised at month-end.32:16 – Wrap: Most shops have a productivity and pricing problem—use SMS truthing to see it sooner.Key takeawaysFlat rate manages downside; hourly requires management. If hourly productivity slides from ~40 flagged hours to ~20, your margin vanishes.Don’t let software mask reality. If SMS says 75% gross profit but financials show ~50%, trust the books and recalibrate SMS.Blend the cure. You rarely fix a major productivity problem only with pricing—and you can’t price your way out of operational drag.Make SMS reflect true cost. Start shop-wide: if SMS shows $10k labor cost but QuickBooks shows $12k, increase internal tech rates by +20% (then refine per-tech if needed).Target “conservative accuracy.” Slightly overstating cost protects your bottom line morebthan rosy math ever will.Thanks to our partner PromotiveIt’s time to hire a superstar for your business; what a grind you have in front of you. 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 https://gopromotive.com/Thanks to our Partner WickedFileTurn 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/Paar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books...

Thanks to our partners Promotive and Wicked FileWhat happens when a shop owner calls to say they’re going broke—only to discover they’re actually profitable on paper? The truth is, profit doesn’t always equal cash flow. And without cash, even the healthiest shops can collapse.In this episode of Business by the Numbers, Hunt Demarest, CPA of Paar Melis & Associates, tackles one of the most dangerous misconceptions in business: why shops fail even when they’re making money. From bootstrapping vs. borrowing to the hidden dangers of credit card advance loans, Hunt unpacks real-world lessons from a client whose debt service was drowning out his profits—and the lifeline that helped him turn it around.If you’ve ever wondered why your bank account doesn’t match your P&L, this episode could be the wake-up call you need.What You’ll Learn in This Episode(00:00) Why profit doesn’t always mean cash—and why cash doesn’t always mean profit(02:12) The #1 killer of small businesses: lack of cashflow(06:44) Debt service vs. total debt: what really matters for survival(08:59) Bootstrapping vs. borrowing: how to pick your strategy and stick to it(11:19) Why cash reserves are more important than paying off all your debt(13:59) When profit isn’t enough: how debt service can sink a shop(15:56) The dangers of credit card advance loans—and why they trap so many shops(18:12) How refinancing debt saved one shop owner from burning $3,000 every monthThanks to our partner PromotiveIt’s time to hire a superstar for your business; what a grind you have in front of you. 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 https://gopromotive.com/Thanks to our Partner WickedFileTurn 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/Paar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop Aftermarket Radio NetworkRemarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open DiscussionDiagnosing the Aftermarket A to Z 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...

Thanks to our partners Promotive and Wicked FileWhat would happen if your shop—or any business—was hit with a wage and hour audit tomorrow?The answer might shock you. For many owners, even those with the best intentions, missteps in overtime, classification, or documentation could result in penalties large enough to shut doors permanently.In this episode of Business by the Numbers, Hunt Demarest sits down with Jamie Hasty, Vice President of SESCO Management Consultants and a leading authority in employment regulation compliance. Jamie brings more than two decades of experience helping businesses navigate the complexities of wage and hour law, overtime requirements, employee handbooks, and Department of Labor audits.From California lunch breaks to discretionary bonuses, Jamie breaks down the most common pitfalls, why “intent” won’t save you in court, and the proactive steps every business owner should take before regulators—or lawyers—come knocking.What You’ll Learn in This Episode:(01:38) Why overtime rules haven’t changed as much as the headlines suggest(03:46) The #1 financial liability most business owners overlook(08:57) How misclassifying employees—even accidentally—can cost millions(13:37) The difference between discretionary vs. non-discretionary bonuses(23:02) Why accurate timecards are your best legal defense(34:49) How to avoid the hidden dangers of generic employee handbooksIf you’re a shop owner—or any employer—this conversation could be the wake-up call that saves your business.Resources:Connect with Jamie Hasty and SESCO Management Consultants: sescomgt.com jamie@sescomgt.comThanks to our partner PromotiveIt’s time to hire a superstar for your business; what a grind you have in front of you. 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 https://gopromotive.com/Thanks to our Partner WickedFileTurn 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/Paar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop Aftermarket Radio NetworkRemarkable Results Radio...

Thanks to our partners Promotive and Wicked FileWelcome to another episode of Business by the Numbers with Hunt Demerast, CPA at Parmelis & Associates. This week, Hunt digs into a deceptively simple question every shop owner should be asking: when and how should you look at your financials?Too often, business owners flip through their QuickBooks file or shop management system without clarity on what they’re really trying to uncover. Hunt breaks down the process like a scientist testing a theory: identify the problem, brainstorm possible fixes, implement solutions, and then analyze results.From chasing profitability to tackling parts gross profit, Hunt explains how daily, weekly, and monthly reviews tell different stories about your business. Along the way, he shares why financials are trailing indicators, how leading metrics like productivity or parts pricing play a bigger role than many realize, and why “set it and forget it” rarely works when it comes to profitability.You’ll also hear:(03:07) Why the frequency of financial reviews should match the problem you’re solving(05:55) How to use the scientific method to test business decisions(10:53) A real-world example of fixing low parts gross profit margins(17:53) The danger of only reviewing numbers once a year(19:47) Why your assumptions must be tested against reality—and how to course-correctWhether you’re chasing higher margins, fighting to stay profitable, or just trying to sleep at night knowing your numbers are right, this episode offers a roadmap to thinking about financials with purpose instead of panic.Stay safe out there—and remember, your financials are only as valuable as the questions you ask of them.Thanks to our partner PromotiveIt’s time to hire a superstar for your business; what a grind you have in front of you. 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 https://gopromotive.com/Thanks to our Partner WickedFileTurn 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/Paar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop Aftermarket Radio NetworkRemarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open DiscussionDiagnosing the...

Thanks to our partner PromotiveMost shop owners assume their shop management system and QuickBooks are telling the same financial story. But what happens when they don’t? In this episode, Hunt DeMarest unpacks the pitfalls of running “two sets of books”—and the costly mistakes that come when your systems are out of sync.Hunt shares a jaw-dropping client story that began with a routine inventory review and ended with a shocking discovery: a shop management system reporting negative $500,000 in inventory. From overstated parts costs to phantom accounts receivable, Hunt reveals how these discrepancies creep in, why 90% accuracy is actually dangerous, and how to rip off the band-aid and fix the problem once and for all.Listeners will walk away with actionable steps to safeguard their financials, from cleaning up accounts receivable to leveraging payment types and analyzing category profit summaries. Because when your numbers align, you’re not just protecting your margins—you’re protecting your business.What You’ll Learn in This Episode:(06:12) The shocking case of a shop reporting negative half a million in inventory(08:34) Why “90% accurate” numbers may cost you thousands in taxes(14:23) The hidden cost of inaccurate tire and parts reporting(18:03) How sloppy accounts receivable inflates your tax bill(22:50) Smarter use of payment types and category profit summaries to spot real profit(27:19) Why outdated canned jobs silently eat away at your marginsGetting your books right isn’t just accounting—it’s survival for your shop.Thanks to our partner PromotiveIt’s time to hire a superstar for your business; what a grind you have in front of you. 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 RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop The Aftermarket Radio Network: https://aftermarketradionetwork.com/Remarkable Results Radio Podcast with Carm Capriotto https://remarkableresults.biz/Diagnosing the Aftermarket A to Z with Matt Fanslow https://mattfanslow.captivate.fm/

Thanks to our partner PromotiveBeing married while owning a business isn’t just about love and partnership—it’s about liability, taxes, estate planning, and protecting your family’s future. In this episode of Business By The Numbers, Hunt Demarest, CPA with Paarmelis & Associates, pulls back the curtain on one of the most common yet misunderstood questions business owners face: should your spouse be on the business, the payroll, or the tax return?From his own estate planning experience at 37 to the real-world pitfalls he’s seen in auto repair shops across the country, Hunt shares what every entrepreneur needs to know before signing their spouse onto ownership or payroll. This episode covers everything from joint tax filing risks to payroll tax traps—and even the little-known IRS relief provisions like innocent spouse and injured spouse rules.What You’ll Learn:(00:40) Estate planning and why spousal ownership mattersWhy estate planning is crucial at any age (yes, even in your 30s).The difference between assets and liabilities when transferring ownership.Why lawyers and accountants often approach planning differently.The hidden costs of joint ownership in businesses vs. brokerage accounts.(05:56) Spouses, liability, and your businessWhy putting your spouse on the business could expose them to payroll and sales tax liability.The dangers of “splitting ownership” just to be fair.Why estate tax benefits often don’t outweigh liability risks.A real-world example of how the IRS can pursue both spouses if one is on the books.(12:00) Innocent spouse vs. injured spouse: IRS relief explainedThe difference between innocent spouse relief and injured spouse relief.When each applies—and why you hope you’ll never need them.Why filing separately almost never makes sense (and when it might).(16:18) Payroll, joint filing, and the “nuclear option”Why paying your spouse rarely saves taxes—and can cost thousands in payroll tax.When it does make sense to put your spouse on payroll (hint: retirement accounts, health insurance).Why joint filing almost always beats separate returns.The rare scenarios where keeping your spouse off the business can protect your familyHunt wraps up with a reminder: marriage and business both require careful planning. Talk to your spouse, your lawyer, and your accountant before making big ownership or payroll decisions—because the wrong choice could cost far more than you think.Thanks to our partner PromotiveIt’s time to hire a superstar for your business; what a grind you have in front of you. 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 RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books Here:Wrenches to Write-Offs

Thanks to our partner PromotiveThe mega-money players have arrived—and they’re changing the game for independent auto repair shops.Private equity is buying up some of the best shops in the country, often paying prices that make long-time owners’ jaws drop. But what does this mean for you—the shop owner still running your business day-to-day? Should you be worried, or is there a hidden opportunity in all this change?In this episode of Business by the Numbers, Hunt Demerast, CPA at Paar Melis & Associates, breaks down what private equity really is, why they’re suddenly so interested in auto repair, and the strategies they use to buy, scale, and sell. You’ll learn not just how they operate—but what independent shop owners can borrow from their playbook to boost profitability and stay competitive.What You’ll Learn:(02:51) Why this episode isn’t about “how to sell”—and what it is about(03:27) The number one rule when approached by private equity (and why going it alone is risky)(04:42) How other industries—collision, HVAC, dealerships—have already been through this wave of consolidation(08:57) The big labor rate advantage collision shops have, and why private equity thinks it can apply to repair shops(11:16) The mindset difference: why private equity is only about profitable work(13:50) Strength in numbers: why 80 small shops are worth far more together than apart(16:10) How tire sales and bulk purchasing make their numbers work(17:57) The lessons independent shops can steal from private equity’s approach(20:15) The choice: build for community or build for maximum money(22:27) Why a private equity buyout might actually make your life easier(24:37) The two possible futures for private equity in auto repair—and which is more likelyIf you’ve been curious, concerned, or just plain baffled by the rise of private equity in the auto repair world, this episode gives you the insider view—and the tools to prepare for what’s next.Thanks to our partner PromotiveIt’s time to hire a superstar for your business; what a grind you have in front of you. 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 RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop The Aftermarket Radio Network: https://aftermarketradionetwork.com/Remarkable Results Radio...

Thanks to our partner PromotiveStill judging your advertising budget by a percent of sales? Thinking of buying an alignment rack or even an entire shop? What about paying down that 2.75% mortgage? Hunt is here to challenge your assumptions and break down how ROI—Return on Investment—should guide every major decision you make.In this week’s episode, Hunt pulls back the curtain on the real math behind smart business moves and how most shop owners are getting it wrong by focusing on emotion over numbers. Whether it’s marketing spend, new equipment, or business expansion, he explains how to look at your return like an investor—not just a technician with a calculator.What You’ll Learn:Understanding ROI Beyond the Buzzword(01:16) Why ROI is more than just an acronym—it’s your business’s compass(03:42) What advertising, buying equipment, and paying debt all have in common(06:05) Why emotion-based decisions are costing you real moneyAdvertising ROI: The Most Misunderstood Metric(06:55) The #1 mistake shops make when evaluating ad spend(08:15) Why 3–6% of sales is a misleading metric(10:37) Why gross profit—not sales—is the number that matters(13:02) What a 100% ROI looks like—and why you might be underspendingBuying Equipment: A Smarter Way to Evaluate Big Purchases(16:16) The alignment rack ROI breakdown every shop owner should run(17:56) How many alignments you need to break even (and why it’s not enough)(20:23) When optimism becomes a liability in ROI math(22:11) What to do when the ROI is at 0%Buying or Selling a Shop: The ROI Lens That Reveals Everything(23:26) Why auto repair shops are sold based on profit—not top-line sales(24:02) Two shops, same price—one makes 3X more: which would you buy?(26:13) How bad ROI ruins family buyouts (and what to do instead)Paying Off Debt: When It’s Smart—and When It’s Not(29:41) Why paying off your credit card could earn you 24% overnight(31:49) The 2.75% mortgage myth—when being debt-free costs you more(34:07) Why cash beats being debt-free (almost) every time(35:26) The lease payoff trap no one warns you aboutThanks to our partner PromotiveIt’s time to hire a superstar for your business; what a grind you have in front of you. 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 RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop The Aftermarket Radio Network: https://aftermarketradionetwork.com/Remarkable Results Radio...

Thanks to our partner PromotiveWhether you're thinking of buying your first auto repair shop, selling your third, or investing in new equipment, understanding return on investment (ROI) is essential—not just in theory, but in real-life dollars and decisions. In this episode of Business by the Numbers, Hunt Demarest, CPA at Paar Melis & Associates, breaks down ROI in plain English, with examples shop owners can actually use.What’s the difference between a 33% ROI and a 100% cash-on-cash return? Why are private equity firms offering double what a local buyer would? And how should your time—yes, your actual hours—factor into every decision?Hunt doesn’t just explain ROI. He exposes how it shows up in equipment purchases, business sales, and shop valuations—and how emotional decisions can cloud even the smartest investments.What You’ll Learn:Understanding ROI Beyond the Buzzword(01:52) Why ROI isn't just for Wall Street (hint: you're already using it!)(03:55) The $1,000 tool test: You know ROI even if you think you don’t(05:26) Why sellers think in multiples, but buyers think in ROIROI and Shop Sales: The Buyer vs. Seller Mindset(07:45) How a seller gets $1M, while a buyer only invests $100K(09:28) Why time and risk are everything when evaluating a shop(12:22) The $100K offer scenario: Would you take it?Active vs. Passive Investments: Where Shops Fit In(22:04) Why a 33% ROI isn’t the whole story(23:18) Cash-on-cash return: the real reason repair shops can be goldmines(25:44) So why isn’t everyone opening a shop? (Spoiler: It’s not easy money)The Private Equity Curveball(27:42) What PE firms know about ROI that most shop owners overlook(30:06) Why PE firms will pay double and still make a profit(33:07) When 18% ROI beats 33%: The power of passive ownershipROI isn't just a number—it's a decision-making framework. Whether you're a buyer, a seller, or someone trying to decide if that new alignment rack is worth the splurge, Hunt gives you the tools to take emotion out of the equation and make smarter financial calls.Thanks to our partner PromotiveIt’s time to hire a superstar for your business; what a grind you have in front of you. 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 RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop The Aftermarket Radio Network: https://aftermarketradionetwork.com/

Thanks to our partner PromotiveThis week, Hunt Demerast, CPA, dives into three hot-button business questions—each with surprising consequences for your bottom line. From covering weight loss meds for your employees to falling into the payroll HR trap, and even how the IRS is tightening the screws on your gambling losses—this episode breaks it all down, minus the legalese.What You’ll Learn:(00:00:00) Introduction(01:02) Can you write off weight loss drugs like Ozempic for your employees—or yourself?(03:19) The truth about MERPs, HRAs, and what ChatGPT got right and wrong(07:09) The real IRS rule that trips up most owners (hint: it's about fairness)(11:28) Gambling tax rule changes that could cost you—even if you lose(16:04) What triggers a W2-G, and how scratch-offs could land you a surprise tax bill(23:30) Why HR modules from payroll companies are often a waste of money(25:50) A real-life story that cost Hunt money—and why handbooks matter(29:52) What every business owner should review in their employee handbookWhy It Matters: If you’re a shop owner or small business operator trying to make smart decisions on health benefits, tax deductions, and HR compliance, this episode is a must-listen. Hunt pulls back the curtain on commonly misunderstood write-offs, state labor laws, and how small mistakes can lead to big headaches.Thanks to our partner PromotiveIt’s time to hire a superstar for your business; what a grind you have in front of you. 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 RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop The Aftermarket Radio Network: https://aftermarketradionetwork.com/Remarkable Results Radio Podcast with Carm Capriotto https://remarkableresults.biz/Diagnosing the Aftermarket A to Z with Matt Fanslow https://mattfanslow.captivate.fm/Business by the Numbers with Hunt Demarest 

Thanks to our partner PromotiveThis week on Business by the Numbers, Hunt Demerast, CPA at Paar Melis & Associates, returns to break down what the new “Big Beautiful Bill” really means for shop owners and employees. From tax-free overtime myths to what counts as a "qualified" tip, Hunt pulls back the curtain on the IRS's latest updates and what they actually mean for your bottom line.He also dives into one surprising tax change that nobody’s talking about—yet could massively simplify your year-end planning.What You’ll Learn in This Episode:(03:33) The truth behind tax-free tips—are auto shops even eligible?(14:38) The real winners in the new overtime tax break (and why it’s not shop owners)(21:02) What “qualified overtime” really means (and why USA Today got it wrong)(25:46) A realistic tax savings example for your team(29:25) Why pass-through entity taxes may disappear—and what to do before they doTakeaway: Don’t rush to change your pay structure just yet. Hunt explains why "hurry up and wait" is your smartest strategy for now.Thanks to our partner PromotiveIt’s time to hire a superstar for your business; what a grind you have in front of you. 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 RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop The Aftermarket Radio Network: https://aftermarketradionetwork.com/Remarkable Results Radio Podcast with Carm Capriotto https://remarkableresults.biz/Diagnosing the Aftermarket A to Z with Matt Fanslow https://mattfanslow.captivate.fm/Business by the Numbers with Hunt Demarest https://huntdemarest.captivate.fm/The Auto Repair Marketing Podcast with Kim and Brian Walker https://autorepairmarketing.captivate.fm/a...

Thanks to our partner PromotiveA 900-page monster of a law just dropped—and it’s about to change how you pay taxes, deduct expenses, and run payroll at your repair shop.This week, Hunt Demerast, CPA at Paar Melis & Associates, breaks down the One Big Beautiful Bill Act (OBBA) and how its sweeping tax reforms affect your shop, your employees, and your personal finances. You’ll hear what stayed the same, what changed unexpectedly, and what you need to keep an eye on before making any big moves.From bonus depreciation to SALT deduction caps, tips and overtime loopholes to gambling losses—yep, that's in there too—this episode simplifies the complex and sets you up for strategic tax savings.What You’ll Learn:00:34 – Why the “Big Beautiful Bill” is no joke02:24 – What’s not in the bill: no politics, just business04:45 – Child Tax Credit: what stays the same and why it matters07:03 – QBI deduction: still 20%, but what it means for your bottom line09:27 – Bonus Depreciation: the biggest unspoken impact11:12 – SALT Cap raised to $40k: huge win for high-tax states16:55 – 3 campaign promises that actually passed17:10 – No tax on Social Security? Yes…and no19:34 – Tips & Overtime: $25k income deduction per category24:08 – Gambling losses capped at 90%: a hidden tax hike?26:22 – Are meals finally off the table?28:11 – Trump Accounts: the “non-IRA IRA” for your kids30:31 – Car loan interest deduction—boon or trap?33:24 – Qualified Production Property: a sleeper hit for shop owners?35:45 – What you should (and shouldn’t) do nowThanks to our partner PromotiveIt’s time to hire a superstar for your business; what a grind you have in front of you. 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 RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop The Aftermarket Radio Network: https://aftermarketradionetwork.com/Remarkable Results Radio Podcast with Carm Capriotto https://remarkableresults.biz/Diagnosing the Aftermarket A to Z with Matt Fanslow https://mattfanslow.captivate.fm/Business by the Numbers with Hunt Demarest 

Thanks to our partner PromotiveIn this final episode of our Benchmark Report series, Hunt Demarest, CPA with Paar Melis and Associates, uncovers what truly separates the top shops from the rest—productivity, profit margins, and owner involvement.Key takeaways:Top-performing shops average 55%+ productivity, while bottom-tier shops hover around 41%.That 15-point gap translates to $13,000 more sales per technician and $12,000 more sales per bay monthly.Top shops also average $800 per repair order, compared to $575 for the bottom tier.Their labor gross profit margin is roughly 70% vs. 50% for lower performers.Productivity isn’t just tech speed—it’s team, processes, bay usage, and daily consistency.Download your free 2024 Automotive Industry Benchmark Report: https://info.paarmelis.com/2024-automotive-industry-benchmark-report2025 Benchmark Report Part 1: Biggest Changes, Key KPI's and Trends [E175]: https://huntdemarest.captivate.fm/episode/2025-benchmark-report-biggest-changes-key-kpis-and-trends-e1752025 Benchmark Report Part 2 [E176]: https://huntdemarest.captivate.fm/episode/2025-benchmark-part-2-e176Thanks to our partner PromotiveIt’s time to hire a superstar for your business; what a grind you have in front of you. 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 RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop The Aftermarket Radio Network: https://aftermarketradionetwork.com/Remarkable Results Radio Podcast with Carm Capriotto https://remarkableresults.biz/Diagnosing the Aftermarket A to Z with Matt Fanslow https://mattfanslow.captivate.fm/Business by the Numbers with Hunt Demarest 

Thanks to our partner PromotiveIn this second part of our 2025 Benchmark series, Hunt Demarest, CPA, with Paar Melis and Associates, breaks down performance trends by region, shop size, and shop type, using real-world data from auto repair businesses across the U.S.Key points:Regional profit trends with the West leading and the Southeast laggingWhy higher productivity—not labor rate—drives better profitsHow overhead impacts small versus large shopsShop type breakdown: general repair, diesel, and EuropeanHow to use benchmarks effectively without overanalyzingDownload your free 2024 Automotive Industry Benchmark Report: https://info.paarmelis.com/2024-automotive-industry-benchmark-report2025 Benchmark Report Part 1: Biggest Changes, Key KPI's and Trends [E175]: https://huntdemarest.captivate.fm/episode/2025-benchmark-report-biggest-changes-key-kpis-and-trends-e175Thanks to our partner PromotiveIt’s time to hire a superstar for your business; what a grind you have in front of you. 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 RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop The Aftermarket Radio Network: https://aftermarketradionetwork.com/Remarkable Results Radio Podcast with Carm Capriotto https://remarkableresults.biz/Diagnosing the Aftermarket A to Z with Matt Fanslow https://mattfanslow.captivate.fm/Business by the Numbers with Hunt Demarest https://huntdemarest.captivate.fm/The Auto Repair Marketing Podcast with Kim and Brian Walker https://autorepairmarketing.captivate.fm/

Thanks to our partner PromotiveWelcome to Part 1 of our annual Benchmark Report—hosted by Hunt Demarest, CPA, from Paar Melis & Associates. We dig into real financial data from hundreds of auto repair shops across the U.S., based on actual bookkeeping, not surveys.Download your free 2024 Automotive Industry Benchmark Report: https://info.paarmelis.com/2024-automotive-industry-benchmark-reportKey Takeaways:Average monthly sales dropped from $149K (2023) to $123K (2024), but sales per advisor, technician, and bay remained steady.Gross profit % increased (from 51 % → 52 %), and overall expenses dropped (35 % → 33 %), boosting shop profitability.Advertising spend fell (3 % → 2 % of sales): shops that advertise less might be missing opportunities.Productivity plunged (57 % → 47.6 %)—likely due to fixed staff levels & fewer cars in 2024.Context matters: metrics like average repair order, car count, and productivity are interconnected—local benchmarks offer more accurate insight.Thanks to our partner PromotiveIt’s time to hire a superstar for your business; what a grind you have in front of you. 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 RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop The Aftermarket Radio Network: https://aftermarketradionetwork.com/Remarkable Results Radio Podcast with Carm Capriotto https://remarkableresults.biz/Diagnosing the Aftermarket A to Z with Matt Fanslow https://mattfanslow.captivate.fm/Business by the Numbers with Hunt Demarest https://huntdemarest.captivate.fm/The Auto Repair Marketing Podcast with Kim and Brian Walker https://autorepairmarketing.captivate.fm/The Weekly Blitz with Chris Cotton a...

Thanks to our partner PromotivePlanning for taxes shouldn’t feel like rolling the dice. In this episode of Business by the Numbers, Hunt walks through how smart shop owners use real data, not hope, to forecast and manage their tax obligations all year long.Why Q2 and Q3 are the real moneymakers for accurate tax forecastingWhen it actually makes sense to buy that truck for the write-offHow and when to adjust your tax estimates (and why it matters)The truth about retirement contributions as a tax strategyCommon mistakes shop owners make by skipping tax planningThanks to our partner PromotiveIt’s time to hire a superstar for your business; what a grind you have in front of you. 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 RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop The Aftermarket Radio Network: https://aftermarketradionetwork.com/Remarkable Results Radio Podcast with Carm Capriotto https://remarkableresults.biz/Diagnosing the Aftermarket A to Z with Matt Fanslow https://mattfanslow.captivate.fm/Business by the Numbers with Hunt Demarest https://huntdemarest.captivate.fm/The Auto Repair Marketing Podcast with Kim and Brian Walker https://autorepairmarketing.captivate.fm/The Weekly Blitz with Chris Cotton https://chriscotton.captivate.fm/Speak Up! Effective Communication with Craig O'Neill https://craigoneill.captivate.fm/