Accounting and Bookkeeping Tips for Cleaning Services

Similarly, payroll costs can stack up, so you should only employ the people who you need on your payroll; don’t overstaff! A good way to get around this is by outsourcing when possible. Not only can this help you save money, but it can also reduce the time you need to spend managing employees instead of growing your business. As a business whose service involves the use of your own inventory of products, you probably find yourself making frequent purchases. Even small ones matter for bookkeeping purposes – and the smaller the purchase, the easier it is to lose track of it. For these reasons, the cleaning industry has an emphasized need to retain receipts.

• When he left the corporate world, he applied all of that financial gusto as CEO of Blue Skies Services, a $3 million cleaning company in four locations.
• That’s why we developed FreshBooks, a field service management software that scales with your business without sacrificing its ease-of-use.
• Or I have heard, that my accountant does my taxes for me, I do not need to do my bookkeeping.
• That staff, meanwhile, will be off-site much of the time, visiting the homes of clients.
• Try ZenMaid’s free maid service software for 14 days right now.

When you manage your business accounting like a pro, you are empowered to make better financial decisions and avoid costly mistakes down the road. These expenses can sneak up on you—using an expense tracker or bookkeeping software and saving your receipts can help you avoid slipping into “the red,” i.e., losing money. Send your clients a reminder message the day before each appointment! This little trick will help you to avoid no shows or lock outs, get a heads up if your client will want an extra task, and improve customer service. When you first started your cleaning business, you may have made your personal and business purchases together and organized them the best you could later.

A customized bookkeeping service doesn’t have to cost a lot. Here’s why:

If you are going over the allotted cleaning time you need to figure out why. Make sure you are following a consistent cleaning regime and not wasting time. Cost of Goods Sold (COGS) refers to the cost of goods that are either manufactured or purchased and then sold. Your business sales revenue minus the cost of goods sold equals your business’s gross profit.

Maid service businesses find that FreshBooks offers plenty of useful features, designed specifically for owners who are on-the-go. Quickly create invoices on your phone and accept online credit card payments via an email link. No matter what it is you need to do, the all-in-one FreshBooks field service management software can help you do it. If you’re ready to lighten your load as a business owner, it’s time to work smart and let FreshBooks do all the heavy lifting.

With ZenMaid Sally will receive a text notification that your cleaners are on their way. She is thrilled 🤩

Because you can only deduct the business use of your car, you can only deduct the rate based on those 5,000 miles. This is a reminder that you have a cleaning scheduled for tomorrow at 9 AM. “Joining zenmaid was the best business decision I have made.” Get your contacts and calendar imported to ZenMaid by our support team. Your cleaners are happy and have all the information they need at their fingertips. If you’re using a CPA, ask them to share how they have been categorizing your transactions for tax purposes.

• Cleaning houses can indeed be a chore, but one that can be incredibly rewarding, especially when someone pays you to do it.
• The American Cleaning Institute® (ACI – ) is the Home of the U.S.
• “The current March 17, 2024, deadline does not provide sufficient time to fully and appropriately prepare all provinces and territories across Canada,” the letter stated.
• From profit & loss statements to sales tax summaries to expense reports, each record is only a few clicks away.
• They are way less likely forget and leave you locked out with no house to clean.

You don’t have to be a financial expert to run a small business. But it is important to have a basic understanding of your finances. It might seem overwhelming at first, but once you have the right systems implemented, you can start managing your books in less time. For example, you might think it’s necessary to add every single source of income into a specific category to file your tax return correctly. But there is only one line for gross business income on your tax return.

Hire an Accountant (Optional)

FreshBooks, combined with its many app integrations, allows you to monitor your supplies and charge customers for the resources they use. Janet Berry-Johnson, CPA, is a freelance writer with over a decade of experience working on both the tax and audit sides of an accounting firm. She’s passionate about helping people make sense How to do Bookkeeping for Cleaning Businesses of complicated tax and accounting topics. Her work has appeared in Business Insider, Forbes, and The New York Times, and on LendingTree, Credit Karma, and Discover, among others. In addition to his active engagement in ACI’s antiseptics research program, he provided leadership and strategic thinking on behalf of the industry.

It is very versatile and can work great for your cleaning business with a little set up. When a client asks for a monthly https://www.bookstime.com/articles/restaurant-bookkeeping cleaning, put them on the 4 week cleaning plan. Do not schedule them the 1st of each month, or 2nd Tuesday.