Introduction
Running a moving company is hard enough without worrying about spreadsheets, reconciliations, and confusing financial reports. If you’ve ever looked at your moving company profit and loss statement (P&L) and thought, “Why does it say I’m profitable when I barely have cash in the bank?”—you’re not alone.
In this Movified Podcast episode, host Mark Hirschi sits down with Brock Hartzler of ProMover Accounting to simplify the numbers behind building a financially healthy moving company. Brock explains what to track, when to adjust, and how to structure your business for real profit—not just paper profit.
This article is written for moving company owners, franchisees, and industry professionals who want to stop guessing and start mastering their financial health.
Key Takeaways
What You’ll Learn:
- Direct Labor Target: Keep Total Direct Labor ≤ 34% of sales (wages, payroll taxes, contractors, workers’ comp).
- Gross Margin: Aim to keep 50% of revenue after direct costs, leaving room for overhead and profit.
- Overhead Control: Admin wages should be ≤ 10% of sales. Don’t add overhead too soon—invest in sales first.
- S-Corp Advantage (U.S.): Once you net ≥$50k, switch to an S-Corporation to reduce self-employment tax legally.
- Biggest Cost: Unused potential. Don’t scale for July if you can’t afford January.
Table of Contents
The P&L Every Moving Company Owner Can Understand
At its core, a profit and loss statement should tell you one thing: are you building a business that creates sustainable profit? But many movers only see their P&L once a year when their accountant finalizes taxes. That’s a problem.
Why? Because annual P&Ls are like autopsies. You can’t change what already happened. Instead, you need monthly reporting so you can make adjustments in real time.
3 Core Metrics to Track Monthly
- Direct Labor as % of Sales (Target ≤34%)
- Includes crew wages, payroll taxes, contractor payments, and workers’ comp.
- This should never creep above one-third of total revenue.
- Includes crew wages, payroll taxes, contractor payments, and workers’ comp.
- Gross Profit Margin (Target ~50%)
- Direct costs: crew, truck, rental, fuel, tolls/parking, and a small damage reserve.
- Marketing and office expenses are not included here.
- Direct costs: crew, truck, rental, fuel, tolls/parking, and a small damage reserve.
- Admin Wages (Target ≤10% of Sales)
- At $1M in sales, admin wages (including taxes) should cap at $100k.
- If the owner takes that $100k, there’s no room left for other admin staff.
- At $1M in sales, admin wages (including taxes) should cap at $100k.
Pro Tip: Your P&L is a pie. Sales = 100%. Every slice you assign to labor, trucks, insurance, or admin shrinks your profit slice. Guard it carefully.
What Top Operators Do Differently
Brand, Community, and Margins
Brock emphasizes that brand drives profit. Movers who invest in community involvement and build referral pipelines spend less on ads. Referrals are the cheapest, highest-ROI marketing channel.
But brand alone isn’t enough. You must combine it with financial discipline:
- Keep labor ratios in check.
- Adjust overhead as you grow.
- Protect cash during seasonal slowdowns.
The S-Corp Advantage (U.S. Tax Context)
One of the biggest tools for U.S.-based moving companies is the S-Corporation.
- As an LLC, you pay 15.3% self-employment tax on all profit.
- As an S-Corp, you must pay yourself a reasonable W-2 wage (say $50k). You’ll pay 15.3% on that wage only.
- Remaining profit flows through without that self-employment tax, saving ~7.65%.
For movers consistently netting $50k+, this shift can mean thousands in tax savings every year.
Applying the Metrics: Pricing, Cash, and Payroll
Pricing That Protects Gross Margin
When quoting jobs, your goal is to keep ~50% of the invoice after direct costs.
Example:
- $1,000 job
- Direct costs ≤ $500 (crew, truck, fuel, tolls, damage reserve)
- Remaining $500 covers rent, insurance, admin, and profit
If your month is $40k in revenue and $20k in direct costs, you should have $20k left for overhead and profit. If overhead eats $19k, you’ll feel broke despite the revenue.
Marketing Beyond Ads
Don’t forget: marketing isn’t just Facebook or Google ads. It’s:
- Branded uniforms
- Truck wraps (rolling billboards)
- Swag like water bottles, pens, and notepads
All of these should be budgeted as part of your customer acquisition strategy.
Recommended Minimum Cash Balance
Create a cash buffer using this formula:
- Add your average monthly overhead (admin, rent, insurance, software).
- Add seasonal adjustments (winter dip).
That’s your minimum cash runway. Anything above is available for growth, distributions, or truck purchases.
Payroll and Contractor Tracking
Many movers misuse cash apps to pay contractors. Instead:
- Use a CRM like SmartMoving to track percentages (e.g., owner-operators at 65% of job revenue).
- Push that data into Gusto or another payroll software.
This ensures you issue W-2s or 1099s correctly and stay audit-proof.
Red Flags and Fixes: A Real-World Playbook
Red Flag 1: Overhead Built for July
- Problem: You hire staff and lease space for $200k summer months but earn $70k in January.
- Fix: Scale your company to be profitable at the winter floor, then add throughput.
Red Flag 2: Excess Debt
- Problem: Debt load > 15% of annual sales. Credit card debt and merchant cash advances are killers.
- Fix: Keep total debt ≤ 15% of sales. Pay cards off monthly. Refinance bad loans.
Red Flag 3: Admin Wages Too High
- Problem: Admin wages > 10% of sales.
- Fix: Cross-train, automate, and document SOPs. Each admin must deliver measurable output.
Red Flag 4: Sloppy Contractor Payments
- Problem: Paying day labor via Cash App/Zelle without records.
- Fix: Pay through a payroll tool. Collect W-9s/I-9s. Issue 1099s on time.
Books and Tools to Build Financial Literacy
Brock recommends three resources every moving company owner should explore:
- Extreme Ownership by Jocko Willink & Leif Babin
- Leadership mindset: everything in your business is your responsibility.
- Leadership mindset: everything in your business is your responsibility.
- The Richest Man in Babylon by George S. Clason
- Timeless financial principles: save consistently, reinvest wisely, avoid overspending.
- Timeless financial principles: save consistently, reinvest wisely, avoid overspending.
- 60 Minute CFO: The Fast Track to Understanding Finance for Movers by David G.J.
- Industry-specific financial training. Includes downloadable Excel templates to plug in your numbers.
- Industry-specific financial training. Includes downloadable Excel templates to plug in your numbers.
Tools mentioned in the episode:
- QuickBooks Online — Accounting standard for most movers
- SmartMoving — CRM for job costing, sales, and scheduling
- Gusto — Payroll software that integrates with QuickBooks
Why Choose Movified
The moving industry is unique. Generic accounting advice doesn’t always apply. That’s why Movified exists—to bring real operators and experts into conversations that move the needle.
- Insider Access: You hear directly from accountants, operators, and consultants who know moving.
- Proven Track Record: Salmon’s Moving & Storage, founded in 1913, is still thriving—because the numbers matter.
- Actionable Insights: No fluff. Each podcast and blog is a playbook you can apply today.
Conclusion
Understanding your moving company profit and loss is the difference between surviving and scaling. When you control direct labor, maintain gross margin, and right-size overhead, you create a foundation for profit. Add in the right tax structure (for U.S. movers) and disciplined cash management, and your company can grow sustainably without the constant stress of wondering where the money went.
As Brock Hartzler reminds us:
“Your biggest cost isn’t labor or trucks—it’s unused potential.”
Meet The Host
Mark Hirschi is the founder and host of Movified. With over a decade in the moving and storage industry, Mark combines real-world leadership experience with a passion for mentorship and elevating industry standards.
