Master Your Auto Repair Shop’s Financial Future

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:*
00:00 Intro
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.
Resources Mentioned
IRS Official ERTC Audit Questionnaire
Ratchet + Wrench Magazine
Promotive – Full-Service Staffing for Auto Repair Shops (GoPromotive.com)
Wicked File – AI for Auto Repair Shops (WickedFile.com)


*Text Hunt: Got a question about ERTC or taxes? *
Text PARMELIS at 301-307-5413 or email podcast@parmelis.com
*Connect with Hunt:*
https://aftermarketradionetwork.com
https://paarmelis.com/

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?


*Resources Mentioned:*
Promotive – GoPromotive.com
Wicked File – WickedFile.com


*Text Hunt*
Have a question or want your topic covered on the show?
Email podcast@parmelis.com or text 301-307-5413.
Connect with Hunt Demerast
Find all episodes of Business by the Numbers on AftermarketRadioNetwork.com.

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).
This week, 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.


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*
00:00 Intro
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


*Resources Mentioned*
https://www.gopromotive.com
https://www.wickedfile.com

*Text Hunt*
Got a question you want answered on the show? Email podcast@parmelis.com or text 301-307-5413.
Website: Aftermarket Radio Network

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.
*What You’ll Learn in This Episode*
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.


*Resources Mentioned*
Promotive: Automotive staffing solution — gopromotive.com
Wicked File: AI software to recover lost profits — wickedfile.com


📱 Text your questions to 301-307-5413 or email podcast@parmelis.com
🎧 Connect with Hunt and explore more shows at AftermarketRadioNetwork.com

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:*
00:00 Intro
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 more than rosy math ever will.


*Resources & contacts*
Questions for Hunt: podcast@parmelas.com
Accounting & tax for your shop (text): 301-307-5413
Sponsors: gopromotive.com · wickedfile.com

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 cashflow. And without cash, even the healthiest shops can collapse.
In this episode of Business by the Numbers, Hunt Demarest, CPA of Parmels & 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

*Resources:*
Email Hunt: podcast@parmelis.com
Aftermarket Radio Network: aftermarketradionetwork.com
Accounting & tax services for your shop: Text 301-307-5413

#makingmoney #autorepairshop #accounting

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:*
00:00 Intro
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

Welcome to another episode of Business by the Numbers with Hunt Demerast, CPA at Parmelis & Associates. This week, Hunt digs into a deceptively simple question every shop owner should be asking: when and how should you look at your financials?
Too often, business owners flip through their QuickBooks file or shop management system without clarity on what they’re really trying to uncover. Hunt breaks down the process like a scientist testing a theory: identify the problem, brainstorm possible fixes, implement solutions, and then analyze results.
From chasing profitability to tackling parts gross profit, Hunt explains how daily, weekly, and monthly reviews tell different stories about your business. Along the way, he shares why financials are trailing indicators, how leading metrics like productivity or parts pricing play a bigger role than many realize, and why “set it and forget it” rarely works when it comes to profitability.

*You’ll also hear:*
00:00 Intro
03:07 Why the frequency of financial reviews should match the problem you’re solving
05:55 How to use the scientific method to test business decisions
10:53 A real-world example of fixing low parts gross profit margins
17:53 The danger of only reviewing numbers once a year
19:47 Why your assumptions must be tested against reality—and how to course-correct
Whether you’re chasing higher margins, fighting to stay profitable, or just trying to sleep at night knowing your numbers are right, this episode offers a roadmap to thinking about financials with purpose instead of panic.
Stay safe out there—and remember, your financials are only as valuable as the questions you ask of them.

#finance #financialplanning #financetips

Most shop owners assume their shop management system and QuickBooks are telling the same financial story. But what happens when they don’t? In this episode, Hunt DeMarest unpacks the pitfalls of running “two sets of books”—and the costly mistakes that come when your systems are out of sync.
Hunt shares a jaw-dropping client story that began with a routine inventory review and ended with a shocking discovery: a shop management system reporting negative $500,000 in inventory. From overstated parts costs to phantom accounts receivable, Hunt reveals how these discrepancies creep in, why 90% accuracy is actually dangerous, and how to rip off the band-aid and fix the problem once and for all.
Listeners will walk away with actionable steps to safeguard their financials, from cleaning up accounts receivable to leveraging payment types and analyzing category profit summaries. Because when your numbers align, you’re not just protecting your margins—you’re protecting your business.

*What You’ll Learn in This Episode:*
00:00 Intro
06:12 The shocking case of a shop reporting negative half a million in inventory
08:34 Why “90% accurate” numbers may cost you thousands in taxes
14:23 The hidden cost of inaccurate tire and parts reporting
18:03 How sloppy accounts receivable inflates your tax bill
22:50 Smarter use of payment types and category profit summaries to spot real profit
27:19 Why outdated canned jobs silently eat away at your margins

_Getting your books right isn’t just accounting—it’s survival for your shop._