Owning a cleaning business opens the door to amazing opportunities—from connecting with homeowners or business owners in your community to creating your own source of income. But running a small business also comes with often tedious responsibilities, such as invoicing, bookkeeping, and accounting. One of the most important parts of running a cleaning business is talking to https://www.bookstime.com/articles/real-estate-accounting clients. You won’t need separate software platforms to communicate with customers if you’re using FreshBooks. FreshBooks lets you chat with customers on their project page, right in FreshBooks, so that you can answer their questions and book a maid service for them without switching apps. Through FreshBooks, you can accept credit card and ACH (US Only) payments online.

• You may forget to record a transaction, which is an error of omission.
• Pam owns PB Tax and Accounting Services, and she has over 25 years of bookkeeping experience.
• With FreshBooks, staying on top of your bookkeeping is just a few clicks away.
• Enjoy our wide-ranging conversation where we cover the most taxing (pun intended) questions that growing cleaning businesses struggle with every tax season.

As a single-member LLC, you still don’t have to file a separate tax return for your business. However, your business assets are separate from your personal accounts. Having a solid overview of your bookkeeping and accounting reports gives you a good enough start for cash flow projections for the following months. The first step for making a sound budget is forecasting sales. Luckily, most modern-day bookkeeping and accounting  software have tools that make cash flow tracking a breeze. It’s necessary to keep track of your cash payments if you want to have accurate bookkeeping.

Remember Your Tax Deadlines

There are 2 ways to record the expense of your vehicle and transportation. You can claim actual expense or you can claim standard mileage. Using your pricing sheet, compare the expected cleaning times of each home you cleaned to the actual time it took to clean.

However, by taking advantage of tax deductions, you can save money and make the most out of your business expenses. In this guide, we will outline the various tax deductions that cleaning companies can use to reduce their tax liability and ultimately increase their bottom line. Reconciling your bank statements is an essential part of bookkeeping. It involves comparing your bank statements to your accounting records to ensure that all transactions are accurate and accounted for. Reconciling your bank statements can help you identify errors or fraudulent activity, and it can also help you avoid overdraft fees. A separate business bank account is a good idea for any small business.

Bookkeeping clean-up checklist

All the little chunks of money you pay for supplies throughout the year are considered business expenses. In addition to keeping your receipts organised, you can also try smartphone apps that allow you to snap pictures of your receipts and organise them online. Whatever process you choose, make sure your receipts How to do Bookkeeping for Cleaning Businesses are easy to access so you can deduct the right amount of money from your taxable income. This will also make you compliant to MTD should your business meet the tax threshold. If you’re looking for a way to send invoices in an instant or track your expenses effortlessly, we have just the solution for you.

• It represents the movement of money in and out of your business, including income, expenses, and investments.
• The first step in organizing your business financials is to separate your personal accounts from your business accounts.
• FreshBooks is the ultimate cleaning business software and does everything automatically, using industry-standard double-entry accounting.
• The weekly tasks you can assign to employees or complete yourself.
• Once you have chosen your accounting software, you’ll need to set up your chart of accounts.

Monitoring your cash flow is vital to ensure you have enough funds to cover your day-to-day expenses. Invoices and receipts are vital components of your financial records. They document the services you provide, the income you earn, and the expenses you incur.

Keep Your Receipts

When you get back to the office you can look up on Google Maps to see how many miles you traveled. By clicking ‘Start a Free Trial’, I agree to Bench’s Terms & Privacy Policy. It’s a small taste of what it looks like to have all your bookkeeping taken off your plate.

Accounting is the backbone of your cleaning business’s financial health. It involves tracking and documenting all financial transactions, which is essential for making informed decisions, planning for the future, and complying with tax regulations. Without proper accounting, your business could quickly become chaotic and financially unstable.

Whatever business structure you choose for your small business, you need to apply for an employer identification number (EIN). This is an eight-digit number that acts as a tax identification number for small businesses. Use tools to help you set a budget and manage your assets to better oversee your operational costs.