Are You Spending Too Much? Here are Lawn Care Business Expenses You Need to Track  

Last Sunday, we went to a grocery store, just to grab milk. However, we walked out with $100 worth of cookies, chips, and other processed foods. We didn’t plan on spending this much, but had a “Let’s buy this one as well” moment.  

The reason for telling you this story was not to mention we are big spenders (trust us, we don’t spend too much; this was a one-time thing), but to use this concept for your lawn care business.  

You start the season thinking you’re keeping expenses in check. However, unexpected costs pop up and eat your profits. If you are stuck in this situation, stay with us for the next 10-15 minutes. We’ll break down lawn care business expenses you must track, so you can start growing your business.  

What Are Lawn Care Business Expenses?  

Lawn care business expenses cover everything you spend to keep your operation running. It includes costs like equipment and fuel to the hidden expenses like software subscription. To put it simply, if money is leaving your business, it’s an expense. And if you’re not tracking it properly, it’s a problem. 

Here’s a breakdown of the key expense categories:  

• Equipment and Tools  

• Fuel and Vehicle Costs  

• Employee Wages & Benefits 

• Marketing and Advertising 

• Business Insurance & Licenses 

• Office and Software Costs 

• Unexpected Repairs and Replacements 

Each of these expenses adds up, and they can create cash flow problems for your business. This brings us to the next section.  

Why Track Lawn Care Business Expenses?  

Imagine trying to mow a lawn blindfolded. Sounds ridiculous, right? You’d have no idea where you’re going, what you’ve cut, or how much is left. Running your lawn care business without tracking expenses is the financial equivalent of that.  

Here’s why tracking expenses is important:  

• Know Where Your Money is Going 

• Improve Profit Margins 

• Stay Ahead of Tax Time 

• Avoid Cash Flow Problems 

If you’re not tracking expenses, you’re not really in control of your business. And in an industry where profit margins can be tight, that’s a risk you can’t afford to take. 

4 Lawn Care Business Expenses You Need to Track 

Running a successful lawn care business is about managing costs effectively. If you’re not tracking your expenses, you might be losing money in ways you don’t even realize. 

To stay profitable, here are four key expense categories every lawn care business owner should monitor: 

1. Supplies 

Supplies are an ongoing expense in any lawn care business, and while individual purchases may seem small, they can accumulate over time Without proper tracking, you might end up overspending on unnecessary items or running short on essential materials when you need them most. 

Additionally, fluctuating costs for things like fertilizers, pesticides, and fuel can create unexpected financial strain if they aren’t accounted for in your pricing and budgeting. 

Another challenge is balancing supply purchases with job demand. Buying too much at once ties up cash flow, while not having enough can delay projects and frustrate clients.  

The key is to track these expenses consistently and look for opportunities to cut costs, such as buying in bulk, negotiating with suppliers, or switching to cost-effective alternatives without compromising quality. 

Here are some of the lawn care supplies you need to track:  

• Fertilizers and Weed Control 

• Mulch and Seed 

• Chemicals and Pesticides 

• Protective Gear 

• Trimmer Line and Blades  

2. Equipment 

Equipment is one of the biggest investments in a lawn care business, and if not tracked properly, it can become a major drain on profits. However, these tools come with ongoing costs; not just for the initial purchase but also for maintenance, repairs, and eventual replacements.  

If you don’t track equipment expenses, it can lead to unexpected breakdowns, forcing you to pay for costly emergency repairs or even to replace machines.  

Proper tracking helps you schedule routine maintenance, extend the lifespan of your tools, and plan ahead for new purchases. Additionally, investing in high-quality, durable equipment can save money in the long run compared to frequently replacing cheaper alternatives. 

3. Labor 

Labor is one of the largest recurring expenses for any lawn care business. The thing is the cost of labor goes beyond just wages. It includes payroll taxes, workers’ compensation, benefits, and training.  

One of the biggest challenges in lawn care is balancing labor costs with revenue. Hiring too many workers can drain profits, while understaffing can lead to overworked employees, missed deadlines, and dissatisfied clients. 

Tracking labor expenses allows you to set competitive rates, optimize scheduling, and ensure that every job is priced to cover payroll expenses. 

Here’s what you should be tracking:  

• Employee Wages 

• Payroll Taxes  

• Workers’ Compensation 

• Overtime & Bonuses 

• Training & Certifications  

• Uniforms & Safety Gear  

4. Overhead 

Overhead expenses are the hidden costs of running a lawn care business. These ongoing expenses don’t directly tie to a specific job but are essential to keeping the business running.  

Many small business owners focus on direct costs but underestimate how much overhead impacts their bottom line. Unlike equipment or labor, which have clear and immediate costs, overhead expenses can be easy to overlook. However, failing to track them can lead to budget shortfalls and pricing miscalculations.  

Here are some of the overhead expenses you need to track:  

• Office Rent and Utilities 

• Business Insurance 

• Fuel and Vehicle Maintenance 

• Licensing and Permits 

• Software and Technology  

• Marketing and Advertising 

How to Create a Lawn Care Business Expenses Spreadsheet?  

Now you know about the expenses, but how can you track them? Fortunately, tracking expenses isn’t difficult. The good ol’ spreadsheet can do the work for you. You can monitor spending, analyze trends, and ensure you are pricing services correctly. 

Here’s how you can set up a lawn care business expenses spreadsheet:  

1. Choose a Spreadsheet Tool 

You can use Google Sheets, Microsoft Excel, or any accounting software that allows you to track and organize expenses.  

2. Set Up Expense Categories 

Create columns for major expense categories such as: 

• Date – When the expense occurred. 

• Expense Category – Supplies, equipment, labor, overhead, etc. 

• Vendor/Supplier – Where the purchase was made. 

• Payment Method – Cash, credit card, business account, etc. 

• Amount Spent – The total cost of the expense. 

• Notes – Additional details (e.g., reason for purchase, warranty info). 

3. Automate Totals with Formulas 

To keep your finances clear, add formulas that sum up expenses and help you track spending trends. In Excel or Google Sheets, use: 

• =SUM(range) – To calculate total expenses. 
• =SUMIF(Category Range, “Supplies”, Amount Range) – To track specific categories separately. 

4. Track Monthly and Annual Expenses 

Break your expenses down by month and by year to compare trends. This helps you spot seasonal spending patterns, reduce unnecessary costs, and plan for major purchases. 

Final Thoughts  

So, there you have it. We think it took you less than 15 minutes to read this. But the important thing is you reached here and now know what expenses you need to track. A simple spreadsheet or accounting software can make expense tracking easier, helping you identify where to cut costs and where to invest for growth.  

Speaking of growth, are you looking to grow your business? Tangent Consulting has years of experience as a fractional CFO, business coach, and tax consultant. With us, you don’t need to hire an accountant or business coach separately; you can get both in one place.                              

P.S. If you are reading this, it means you can have access to our free consultation for your business. Avail this for free today before we change our mind 😉    

FAQs 

How to classify lawncare expenses?  

Lawn care expenses should be classified into key categories like supplies, equipment, labor, and overhead. 

What is the main expense of a lawn care business? 

The biggest expense in a lawn care business is labor, including wages, payroll taxes, and workers’ compensation.  

How much do most lawn care companies charge? 

Most lawn care companies charge between $25 to $60 per hour depending on lawn size, location, and service requirements.