How do I check what a pet waste removal business really earns?
Match billing records to bank deposits, track how many subscribers cancel and why, see how the seasons change visit counts, and put a fair wage on the hours the owner works. The profit left after those steps is the figure to discuss with your accountant, not the seller’s headline summary.
Most of the income in a scooping business comes from customers who pay on a repeating schedule. That makes the income easier to trace. It also means a seller’s summary can hide problems that only show in the details: people who quietly left, months that were thin, or an owner who worked far more than the books show.
Match billing to deposits
Ask for the billing system export and the bank statements for the same periods. Each month, the invoices should line up with what was deposited. Look for unpaid accounts, discounts and refunds. If payments come through a card processor or app, ask for its reports as well. Your accountant can read them with you and flag anything that does not fit.
Cancellations and new sign-ups
A list of current customers does not show who left. Ask for start and end dates for each household and the reason given. Steady sign-ups can hide steady losses. Also ask how customers were found. If most came from one source, such as a neighbourhood group or a single advertisement, that source matters to the future of the route.
Seasons and snow cover
Yard work follows the weather. Snow can pause some visits or change what customers want, and spring cleanups can bring a rush. Ask for a full year or more of month-by-month records so you can see the swings, and ask what the owner does to keep customers through slow periods.
The owner’s own labour
If the owner does the visits, their time is a cost you will either pay for or take on yourself. Work out what hiring someone to do those routes would cost, then see what is left. For related checks, see how to check what a dog training business really earns.
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Sources
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- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are financial statements?
- 03Business Development Bank of CanadaGovernmentWhat is Cash Flow
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