Thanks to our partners Promotive and Wicked File

Thanks to our partner Promotive

It’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 WickedFile

Turn 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 Repair

Visit us Online: www.paarmelis.com

Email Hunt: podcast@paarmelis.com

Text Paar Melis @ 301-307-5413

Download a Copy of My Books Here:

• Wrenches to Write-Offs
• Your 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 Discussion

Diagnosing 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 Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching.

Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size.

Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest.

The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level.

Thanks to our partners Promotive and Wicked File

After 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 finances

If 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.docx

Thanks to our partner Promotive

It’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 WickedFile

Turn 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 Repair

Visit us Online: www.paarmelis.com

Email Hunt: podcast@paarmelis.com

Text Paar Melis @ 301-307-5413

Download a Copy of My Books Here:

• Wrenches to Write-Offs
• Your Perfect Shop

The Automotive...

Thanks to our partners Promotive and Wicked File

Every 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 Promotive

It’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 WickedFile

Turn 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 Repair

Visit us Online: www.paarmelis.com

Email Hunt: podcast@paarmelis.com

Text Paar Melis @ 301-307-5413

Download a Copy of My Books Here:

• Wrenches to Write-Offs
• Your 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 Discussion

Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica

Thanks to our partners Promotive and Wicked File

Ever 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 Conversation

If 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 somewhere
• How to identify when a discrepancy is worth investigating
• The most common (and costly) causes of mismatched reports
• A step-by-step way to reconcile parts by vendor—and stop the losses for good

What 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 time

Thanks to our partner Promotive

It’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 WickedFile

Turn 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 Repair

Visit us Online: www.paarmelis.com

Email Hunt: podcast@paarmelis.com

Text Paar Melis @ 301-307-5413

Download a Copy of My Books Here:

• Wrenches to Write-Offs
• Your Perfect Shop

The Automotive...

Thanks to our partners Promotive and Wicked File

Every 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 Demerast, 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.

• (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 Promotive

It’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 WickedFile

Turn 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 Repair

Visit us Online: www.paarmelis.com

Email Hunt: podcast@paarmelis.com

Text Paar Melis @ 301-307-5413

Download a Copy of My Books Here:

• Wrenches to Write-Offs
• Your Perfect Shop

Aftermarket Radio Network

Thanks to our partners Promotive and Wicked File

Auto 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 takeaways

• Flat 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 Promotive

It’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 WickedFile

Turn 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 Repair

Visit us Online: www.paarmelis.com

Email Hunt: podcast@paarmelis.com

Text Paar Melis @ 301-307-5413

Download a Copy of My Books...

Thanks to our partners Promotive and Wicked File

What 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 month

Thanks to our partner Promotive

It’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 WickedFile

Turn 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 Repair

Visit us Online: www.paarmelis.com

Email Hunt: podcast@paarmelis.com

Text Paar Melis @ 301-307-5413

Download a Copy of My Books Here:

• Wrenches to Write-Offs
• Your Perfect Shop

Aftermarket Radio Network

Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion

Diagnosing 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 File

What 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 handbooks

If 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.com

Thanks to our partner Promotive

It’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 WickedFile

Turn 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 Repair

Visit us Online: www.paarmelis.com

Email Hunt: podcast@paarmelis.com

Text Paar Melis @ 301-307-5413

Download a Copy of My Books Here:

• Wrenches to Write-Offs
• Your Perfect Shop

Aftermarket Radio Network

Remarkable Results Radio...