Recurring contracts versus one-time projects
Maintenance contracts bring steady monthly revenue, while installations, mulch jobs and cleanups are project work. Keep separate income accounts for each, plus seasonal services such as snow removal. This view tells you how much of your income is dependable and how much must be sold again every year.
Seasonal contracts and billing levelization
Some snow or lawn contracts are billed in equal monthly payments across a year, though the work happens in one season. Customer payments received before the work is done are a liability, and the revenue is earned as services are delivered. Ask your CPA how to handle the timing and keep copies of the signed contracts.
Job costing for installations
Plants, stone, soil, hardscape materials, subcontractors, equipment rental and crew time should be tagged to the project. Compare the estimate to actual costs when the job closes. Maintenance routes can be costed by route: labor hours, fuel, mower wear and disposal fees divided by the revenue from the route.
Equipment, fuel and repairs
Mowers, trucks, trailers, skid steers and plows are major purchases. They are depreciated, and the financing should be recorded with interest separate from principal. Keep maintenance logs with dates and cost for each machine, as they show when repair costs exceed a replacement payment. Fuel cards with itemized reports are better than bank statement lines. Off-road fuel and other special tax rules require care, so confirm with a CPA.
Crew payroll and seasonal workers
Seasonal employees require payroll setup, tax withholding, workers compensation and sometimes unemployment tax filings. Treating them as informal cash labor creates problems later. Chemical applicators and pesticide work usually require a license, so track license renewals and any required insurance. Overtime rules can apply in busy weeks, so review the current wage rules with a payroll provider.
Plan for the winter. Build a cash reserve in the peak months to cover insurance, loan payments and equipment storage when income dips, and time large equipment purchases so you are not paying for them with off-season cash.
Pricing from your own numbers
Work out an hourly cost for each crew by adding wages, payroll taxes, insurance, fuel, equipment wear and overhead, then dividing by billable hours. Price jobs from that figure plus the margin you need. Many landscapers underprice because they count only wages and materials, which ignores the truck, the trailer and the idle drive time between sites.
Revisit prices every winter when the schedule is quiet and the prior season's data is fresh.
Landscaping carries injury and equipment risks. Keep general liability, workers compensation and vehicle policies current, record each premium and the audit adjustment that can follow, and keep copies of certificates for commercial clients who ask. Calendar the dates for pesticide, irrigation or contractor licenses where they apply.
Common questions
How do I price snow removal contracts?
Track past storms, labor, fuel and equipment wear for each property, then decide between per-event and seasonal pricing.
Can I deduct a truck I use for work and home?
Only the business portion, supported by a mileage log or expense records. Ask a tax professional about limits.
This guide is general information, not tax, legal or accounting advice. Rules, fees and due dates change; check with the IRS, the NJ Division of Taxation or a licensed professional for your situation.