How Much to Put Into Each Landscaping Business Bank Account

by | May 16, 2023 | Cash Management, Landscaping, Profit First | 0 comments

As a landscaper, keeping track of your finances can be overwhelming. However, implementing the Profit First method for your landscaping bookkeeping can simplify the process. In this article, we’ll break down the bookkeeping process step by step and guide you on how to determine the right allocations for each account.


The income account is where all your revenue will pass through. However, unlike a traditional checking account, your money won’t stay here, and you won’t make payments out of it. Your income account acts as a holding place for your money until you distribute it to the other bank accounts through allocation transfers..


This account is a good place to start small. Depending on your current cash flow, you may transfer only 1% of your income to this account initially. If cash flow is good and you typically take distributions on a consistent basis, then start with 2% or 3%. Don’t worry about starting small – you will eventually develop a target percentage or dollar amount that you want your allocations to reach.

Owner’s Pay

Determining how much to transfer to the owner’s pay account is dependent on individual circumstances. If your cash flow is good and you’re already able to pay yourself consistently, it should be easy to determine how much to transfer to this account weekly. If your cash flow is strained, it’s wise to start small and revisit this allocation after using Profit First for a month or more.

Owner’s Tax

To calculate your tax allocations, find out how much you owed to the IRS in the previous year, or what you pay in quarterly estimated payments. After this, determine what percentage of revenue that is. For example, if you paid $20k to the IRS last year and your annual revenue is $500k, then your tax percentage would be 4%.

Operating Expenses

This account is meant to be used for the expenses you incur that keep your landscaping business up and running, from equipment maintenance to employee payroll. It’s normal for a large percentage of your income to go into this account, and you have plenty of time to work towards decreasing the money in this account to become more profitable.

Implementing the Profit First method for your lawn care bookkeeping can set you up for a world of financial success. Although it may seem overwhelming at first, once you determine your allocations, you simply transfer the correct amounts every week, and you’re all set. If you need help determining allocations or need guidance on your landscaping bookkeeping, consider consulting with Profit First professionals such as AccountSolve. Schedule a call today to get clarity and start making financial progress!

Click here for our complete guide to bookkeeping and profitability for landscapers.



Lori Peterson


Lori Petersen

Lori Petersen has seen the frustration and loss that business owners experience when they don’t have command of their finances. Growing up, she watched her father work incredibly hard as a contractor. He’d come home late, eat the dinner kept warm in the oven, and do it all over again the next day. But it all came crashing down when he had to close the business and Lori’s family applied for food stamps. The business had failed and all of his hard work was for nothing. 

Today, Lori views every one of her clients as an opportunity to make this right. She firmly believes no one should work as hard as her dad did and not have a profitable business. No family should suffer because business finances were poorly managed. 

Lori has helped hundreds of business owners make sense of their finances, implement proven money management systems and create unimagined profitability for their business. She ensures they experience the return they deserve for their hard labor.


Download this FREE guide and take the first
step to keeping MORE of your hard-earned cash.

    Enter your details to Get Instant Access to this FREE Resource


      delivered straight to your inbox!

      This field is for validation purposes and should be left unchanged.

      By entering your contact information above, you’re giving Account Solve permission to contact you via email. You can opt-out at any time.

      Follow Us :