How do I check what a junk removal business really earns?

A junk removal business earns money one job ticket at a time, so the earnings trail is made of tickets. Every job leaves a trail: a booking, a crew, a load, a disposal receipt and a payment. The claim that the business earns a certain amount can be checked against those trails, and your accountant can help you do it.

Start with the jobs and the deposits

Ask for a list of completed jobs from the booking software over a full year, with dates and amounts. Match it to the bank statements and card processor reports. Some difference is normal, because of refunds, tips and timing, but each gap should have a reason that the seller can show you.

Match disposal receipts to what was hauled

Every load that goes to a transfer station or recycler leaves a receipt. Compare the number and size of loads with the number of jobs. If revenue seems high for the loads shown, or the other way around, ask why. Also ask about donation drop-offs and any items resold, since these change the picture.

Ask about cash and e-transfer jobs

Payments that skip the card terminal are harder to trace. Ask how they are recorded and who handles them. Lenders treat unrecorded income in their own way, so confirm with your accountant or lender what you can rely on.

Check the costs and the seasons

Look at fuel, repairs, insurance, disposal fees and crew wages against the jobs. Ask how the year rises and falls, and what happens to the crew in slow weeks. Compare the owner’s own pay with what it would cost to hire someone to do the same work. See also what to do when the seller underreported income.