Development preview. Industry figures below are placeholder sample data, not IRS statistics. They will be replaced when the IRS Statistics of Income tables are loaded.
Rivera Landscaping (fictional sample)
Your efficiency plan
Ranked by annual dollar impact. For each item: what the line covers, why it usually runs high, the steps to take, and how to track progress. The goal shown is closing half of each gap in the next year — a realistic first target.
Bring vehicle and fuel costs in line with your industry
You spend 10.8% of sales on vehicle and fuel costs; similar businesses average 7.0%. That is $9,440 more a year than the industry average. Closing half the gap would add about $4,720 to profit each year.
What it covers. Fuel, insurance, repairs, registration and lease payments for business vehicles (or the standard mileage rate).
- More vehicles than the work requires, or trucks larger than the job needs.
- Inefficient routing and long drives between jobs.
- Personal use of company vehicles.
- Older, high-mileage vehicles with poor fuel economy.
- Count vehicles against active crews; sell or park any truck that is not used most days.
- Use route-planning software and group jobs by area.
- Issue fleet fuel cards with per-vehicle limits and review the monthly report.
- Document personal use; personal miles should be reimbursed or treated as compensation.
- Price replacing the least fuel-efficient vehicle when its repair costs are also high.
How to track progress. Vehicle cost per vehicle and per job each month.
Bring repairs and maintenance in line with your industry
You spend 4.5% of sales on repairs and maintenance; similar businesses average 3.0%. That is $3,760 more a year than the industry average. Closing half the gap would add about $1,880 to profit each year.
What it covers. Repairs to vehicles, equipment, tools and buildings that are not capitalized and depreciated.
- Aging vehicles or equipment that now cost more to keep running than to replace.
- No preventive maintenance, so small problems turn into big repair bills.
- Equipment damage from misuse or lack of training.
- Improvements that should have been capitalized being expensed as repairs (check with your CPA).
- List every repair over $500 this year by vehicle or machine; anything on the list three or more times is a candidate to replace.
- Compare each problem unit's annual repair cost with the monthly payment on a replacement.
- Put vehicles and key equipment on a written preventive-maintenance schedule.
- Ask your CPA whether any large items should be capitalized instead — this changes the tax picture, not the cash.
How to track progress. Repair cost per vehicle or machine each quarter, and total repairs as a percent of sales.
Ask a CPA about an S-corp election
At $80,500 of net profit, paying yourself a reasonable salary through an S corp could cut self-employment tax by about $3,448 a year after added costs.
Run the numbers with a CPA using a reasonable salary for your role; elections generally take effect at the start of a tax year.
Bring insurance in line with your industry
You spend 3.8% of sales on insurance; similar businesses average 3.0%. That is $1,960 more a year than the industry average. Closing half the gap would add about $980 to profit each year.
What it covers. General liability, commercial auto, property, workers' compensation and other business insurance (not health).
- Policies that auto-renew without being re-shopped.
- Coverage or limits that no longer fit the business.
- Claims history or misclassified payroll driving up workers' comp.
- Have an independent agent re-shop general liability, auto and workers' comp 60 days before renewal.
- Review limits and deductibles; a higher deductible often saves more than it risks.
- Check that workers' comp classifies each employee correctly, and request a premium audit if not.
- Ask about safety-program and claims-free discounts.
How to track progress. Total premium as a percent of sales at each renewal.
Test more advertising
You spend 0.5% of sales on advertising; similar businesses spend 1.0%. Spending less than peers is only a saving if your pipeline stays full.
What it covers. Paid ads, directories, print, signage, websites and marketing services.
- Relying entirely on referrals, which limits how fast you can grow or replace lost customers.
- No time to manage marketing.
- If you have capacity for more work, set a small monthly test budget (for example 0.5% of sales).
- Start with channels you can measure: local search ads and your Google Business Profile.
- Ask every satisfied customer for a review — it costs nothing and lifts every other channel.
- Track how each new customer found you and keep only what pays back.
How to track progress. New customers per month and cost per new customer by channel.
Line by line
Every cost line on your return as a share of sales, compared with the industry average for businesses of your type and size. In the gap column, a minus sign means you spend more than the industry average each year; a plus sign means you spend less.
| Line | Item | Amount | You | Industry | Gap / yr | Rating |
|---|---|---|---|---|---|---|
| 4 | Cost of goods sold (Part III) | $31,000 | 12.5% | 20.0% | +$18,600 | Better than peers |
Cost of goods sold takes 12.5% of your sales; for similar businesses it is 20.0%. Your gross margin of 87.5% compares with 80.0% — $18,600 more gross profit a year than the industry average. What it covers. Materials, parts and products you resell, direct labor on jobs or production, subcontractors, freight in, and other costs tied directly to what you sell. Why it may be lower. Your gross margin is stronger than most peers — usually a sign of good pricing or purchasing. Protect it by reviewing prices at least once a year as costs rise. | ||||||
| 8 | Advertising | $1,200 | 0.5% | 1.0% | — | Below peers |
You spend 0.5% of sales on advertising; similar businesses spend 1.0%. Spending less than peers is only a saving if your pipeline stays full. What it covers. Paid ads, directories, print, signage, websites and marketing services. Common causes. Relying entirely on referrals, which limits how fast you can grow or replace lost customers. No time to manage marketing. What to do. See item 5 in your efficiency plan for the steps and how to track progress. | ||||||
| 9 | Car and truck expenses | $26,800 | 10.8% | 7.0% | –$9,440 | Well above industry |
You spend 10.8% of sales on vehicle and fuel costs; similar businesses average 7.0%. That is $9,440 more a year than the industry average. Closing half the gap would add about $4,720 to profit each year. What it covers. Fuel, insurance, repairs, registration and lease payments for business vehicles (or the standard mileage rate). Common causes. More vehicles than the work requires, or trucks larger than the job needs. Inefficient routing and long drives between jobs. Personal use of company vehicles. Older, high-mileage vehicles with poor fuel economy. What to do. See item 1 in your efficiency plan for the steps and how to track progress. | ||||||
| 10 | Commissions and fees | $0 | 0.0% | 0.4% | +$992 | In line |
You spend 0.0% of sales on fees and commissions; similar businesses average 0.4%. That is about $992 a year less than the industry average — close enough to count as in line. What it covers. Card-processing fees, bank charges, platform fees and sales commissions. What to keep in mind. Fees are in line with peers. Check your card-processing rate once a year. | ||||||
| 11 | Contract labor | $14,900 | 6.0% | 8.0% | +$4,940 | Better than peers |
You spend 6.0% of sales on contract labor; similar businesses average 8.0%. That is $4,940 less a year than the industry average. What it covers. Payments to independent contractors and subcontractors (not on payroll). Why it may be lower. Contract labor is lower than peers, usually because you use employees instead. Look at total labor cost together. | ||||||
| 13 | Depreciation and section 179 expense | $18,600 | 7.5% | 5.0% | — | For reference |
Depreciation is $18,600, 7.5% of sales; similar businesses average 5.0%. How to read it. Higher-than-average depreciation usually reflects recent equipment or vehicle purchases written off quickly with Section 179 or bonus depreciation, not inefficiency. It is a non-cash deduction, so it is added back in true owner earnings. If it stays high every year, compare how much equipment you buy with how much revenue it produces. | ||||||
| 14 | Employee benefit programs | $0 | 0.0% | 0.3% | +$744 | In line |
You reported no benefit costs; similar businesses average 0.3% of sales. What it covers. Health insurance and other benefit programs for employees. What to keep in mind. No employee benefit programs were reported. Small-employer options such as a QSEHRA or ICHRA can offer health benefits with a fixed, predictable cost. | ||||||
| 15 | Insurance (other than health) | $9,400 | 3.8% | 3.0% | –$1,960 | Above industry |
You spend 3.8% of sales on insurance; similar businesses average 3.0%. That is $1,960 more a year than the industry average. Closing half the gap would add about $980 to profit each year. What it covers. General liability, commercial auto, property, workers' compensation and other business insurance (not health). Common causes. Policies that auto-renew without being re-shopped. Coverage or limits that no longer fit the business. Claims history or misclassified payroll driving up workers' comp. What to do. See item 4 in your efficiency plan for the steps and how to track progress. | ||||||
| 16a + 16b | Interest costs | $2,900 | 1.2% | 0.8% | –$916 | In line |
You spend 1.2% of sales on interest costs; similar businesses average 0.8%. That is about $916 a year more than the industry average — close enough to count as in line. What it covers. Interest on loans, lines of credit, equipment notes and business credit cards. What to keep in mind. Interest is in line with peers. Review your rates once a year and refinance anything above what your bank would offer today. | ||||||
| 17 | Legal and professional services | $1,800 | 0.7% | 0.6% | –$312 | In line |
You spend 0.7% of sales on professional fees; similar businesses average 0.6%. That is about $312 a year more than the industry average — close enough to count as in line. What it covers. Attorney, accounting, bookkeeping, consulting and other professional fees. What to keep in mind. Professional fees are in line with peers. | ||||||
| 18 | Office expense | $1,300 | 0.5% | 0.5% | –$60 | In line |
You spend 0.5% of sales on office and software costs; similar businesses average 0.5% — essentially the same. What it covers. Software subscriptions, office supplies, postage and small office equipment. What to keep in mind. Office costs are in line with peers. Review recurring subscriptions once a year. | ||||||
| 19 | Pension and profit-sharing plans | $0 | 0.0% | 0.2% | +$496 | In line |
You reported no retirement plan costs; similar businesses average 0.2% of sales. What it covers. Employer contributions to 401(k), SIMPLE, SEP or similar plans. What to keep in mind. No retirement plan contributions were reported. A SEP, SIMPLE IRA or Solo 401(k) can cut taxes for the owner and help keep employees — ask your CPA which fits. | ||||||
| 20a | Rent or lease: vehicles, machinery, and equipment | $2,100 | 0.8% | 2.0% | +$2,860 | Better than peers |
You spend 0.8% of sales on equipment rental; similar businesses average 2.0%. That is $2,860 less a year than the industry average. What it covers. Rented or leased vehicles, machinery and equipment. Why it may be lower. You rent less equipment than peers, usually because you own it. Owned equipment shows up instead as depreciation, repairs and interest. | ||||||
| 20b | Rent or lease: other business property | $0 | 0.0% | 1.0% | +$2,480 | Better than peers |
You reported no rent; similar businesses average 1.0% of sales. What it covers. Rent for your shop, office, yard or storage space. Why it may be lower. No property rent was reported, which is common for home-based businesses. | ||||||
| 21 | Repairs and maintenance | $11,200 | 4.5% | 3.0% | –$3,760 | Well above industry |
You spend 4.5% of sales on repairs and maintenance; similar businesses average 3.0%. That is $3,760 more a year than the industry average. Closing half the gap would add about $1,880 to profit each year. What it covers. Repairs to vehicles, equipment, tools and buildings that are not capitalized and depreciated. Common causes. Aging vehicles or equipment that now cost more to keep running than to replace. No preventive maintenance, so small problems turn into big repair bills. Equipment damage from misuse or lack of training. Improvements that should have been capitalized being expensed as repairs (check with your CPA). What to do. See item 2 in your efficiency plan for the steps and how to track progress. | ||||||
| 22 | Supplies (not included in Part III) | $13,900 | 5.6% | 6.0% | +$980 | In line |
You spend 5.6% of sales on supplies; similar businesses average 6.0%. That is about $980 a year less than the industry average — close enough to count as in line. What it covers. Supplies, small tools and consumables not included in cost of goods sold. What to keep in mind. Supplies are in line with peers. | ||||||
| 23 | Taxes and licenses | $3,100 | 1.3% | 1.5% | +$620 | In line |
You spend 1.3% of sales on taxes and licenses; similar businesses average 1.5%. That is about $620 a year less than the industry average — close enough to count as in line. What it covers. Usually the employer share of payroll taxes, plus business licenses, property taxes and some state taxes. Income taxes do not belong here. What to keep in mind. Taxes and licenses are in line with peers. This line is mostly employer payroll taxes, so it moves with wages. | ||||||
| 24a | Travel | $0 | 0.0% | 0.1% | +$248 | In line |
You reported no travel; similar businesses average 0.1% of sales. What it covers. Airfare, lodging and other travel away from home for business. What to keep in mind. No travel was reported. | ||||||
| 24b | Deductible meals | $400 | 0.2% | 0.2% | +$96 | In line |
You spend 0.2% of sales on meals; similar businesses average 0.2% — essentially the same. What it covers. Business meals with clients, staff and prospects (generally 50% deductible). What to keep in mind. Meals are in line with peers. Keep notes on who attended and the business purpose. | ||||||
| 25 | Utilities | $2,600 | 1.0% | 1.0% | –$120 | In line |
You spend 1.0% of sales on utilities and phone; similar businesses average 1.0%. That is about $120 a year more than the industry average — close enough to count as in line. What it covers. Electricity, gas, water, trash, phone and internet. What to keep in mind. Utilities are in line with peers. Ask your utility about free efficiency audits. | ||||||
| 26 | Wages (less employment credits) | $22,000 | 8.9% | 12.0% | +$7,760 | Better than peers |
You spend 8.9% of sales on wages; similar businesses average 12.0%. That is $7,760 less a year than the industry average. What it covers. Wages for employees who are not owners (for an S corp, officer pay is on line 7 instead). Why it may be lower. Wages are lower than peers. That can be efficiency — or a sign that labor is reported in cost of goods sold, that you use subcontractors instead, or that the owner is doing work an employee would normally do. Compare total labor (wages, labor in cost of goods sold and contract labor) before treating this as a saving. | ||||||
| 27b | Other expenses (from line 48) | $2,500 | 1.0% | 3.0% | — | Better than peers |
Other deductions total $2,500, 1.0% of sales (similar businesses: 3.0%). Each item is compared separately in the next section, so it is not rated here. What it covers. Everything on the return's 'other deductions' or 'other expenses' statement. | ||||||
| 30 | Expenses for business use of your home (Form 8829) | $1,800 | 0.7% | 0.4% | –$808 | In line |
You spend 0.7% of sales on home office costs; similar businesses average 0.4%. That is about $808 a year more than the industry average — close enough to count as in line. What it covers. The business share of home expenses from Form 8829. What to keep in mind. The home-office deduction is in line with peers. | ||||||
Other expenses (Part V)
Each item from your statement, grouped by category.
| Category | Amount | You | Industry | Gap / yr | Rating |
|---|---|---|---|---|---|
| All other items Includes: Dump fees $1,400 | $1,400 | 0.6% | — | — | No benchmark |
Other expenses totals $1,400, 0.6% of sales. There is no published industry figure for this item. What it covers. Everything on the return's 'other deductions' or 'other expenses' statement. What to keep in mind. Other expenses are in line with peers. Review the list once a year for items that no longer earn their keep. | |||||
| Utilities & phone Includes: Cell phone $1,100 | $1,100 | 0.4% | — | — | No benchmark |
Utilities and phone totals $1,100, 0.4% of sales. There is no published industry figure for this item. What it covers. Electricity, gas, water, trash, phone and internet. What to keep in mind. Utilities are in line with peers. Ask your utility about free efficiency audits. | |||||
Assets, liabilities and cash
Schedule C does not include a balance sheet, so this report focuses on income, expenses and cash earnings.
True owner earnings
Red flags
S-corp election check
- Reasonable salary assumed at 40% of net profit; the right figure depends on your role and industry pay data.
- Social Security wage base for 2025: $176,100.
- Added costs of $3,000/yr for payroll, an 1120-S return and state fees; your state may differ.
- Excludes the deduction for half of SE tax, QBI effects and retirement-plan changes. A CPA should confirm before electing.
Does the return tie out?
We re-add the totals on your return. Anything that does not match is shown so you can confirm the figures we read.
| Check | Calculated | On return | Result |
|---|---|---|---|
| Line 3 = 1 − 2 | $248,000 | $248,000 | Ties |
| Line 5 = 3 − 4 | $217,000 | $217,000 | Ties |
| Line 7 = 5 + 6 | $217,000 | $217,000 | Ties |
| Line 28 = lines 8 through 27b | $134,700 | $134,700 | Ties |
| Line 29 = 7 − 28 | $82,300 | $82,300 | Ties |
| Line 31 = 29 − 30 | $80,500 | $80,500 | Ties |
| Statement total = line 27b | $2,500 | $2,500 | Ties |