Mistakes in bookkeeping are costly, and the risk increases the more complex your financials are. FreshBooks has a double-entry system that professional accountants use so you can always be bookkeeping for cleaning business confident your numbers are correct. Knowing what categories they use can save you time and money because you can start using more simplified categorizations. This will save you time when you’re gathering the information and allow them to spend fewer hours on your taxes. Maintaining accurate records of all of this information can tell you how much money you’re spending on your business and help you understand how much you’re making.

• The right systems and processes will make sure your numbers stay organized and you don’t run into any hidden surprises come tax time.
• If you are using an online accounting program, it should have the capability to link with your bank account so that you can quickly download the transactions.
• Your accountant uses your recorded transactions to complete these reports and statements.
• Using your pricing sheet, compare the expected cleaning times of each home you cleaned to the actual time it took to clean.
• Customizable accounting software with features tailored for small businesses, supported by our Certified QuickBooks ProAdvisors.
• Every month your bank will send you a statement that includes your deposits and withdrawals (income and expenses, respectively) that went through your business account.

Set up a Business Bank Account

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. Whether you need invoicing, cloud-based data storage, or field service management software, our team can help you keep up with the everyday tasks of running a maid service business. 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. FreshBooks accounting software helps you run your cleaning business more efficiently.

Tax Compliance

Try the easiest-to-use calendar app, made by and for maid service owners. Discover Aspire’s latest updates, including bulk rescheduling, enhanced time-tracking, normal balance lost opportunity insights, and a… Cost of Goods Sold (COGS) refers to the cost of goods that are either manufactured or purchased and then sold.

• However, as with any business, managing finances is crucial for long-term success.
• Help your cleaning business reach its fullest potential by choosing the right service software for sustainable success.
• If you keep a client schedule for the year, then you should already have all of this information in one spot.
• I created these forms so that brand new cleaning businesses did not have to invest in expensive accounting software.
• As a cleaning business owner, you pay taxes throughout the year rather than paying a bill tax bill when you file your tax return.
• In this post, we’ll show you three strategies to implement into your bookkeeping process that will save you time and let you manage your books in under one hour per month.

B is for Book Balance: Keeping Things Organized

• At the end of the day, you will be provided a list of your trips where you can swipe right if it was a business trip and left if it was personal.
• One of the key aspects of financial management is bookkeeping.
• When you are first starting out revenue is low, don’t spend your money on fancy tools until you are making the Revenue to support the expense.
• Even better, your maid service team can collaborate with you.
• Ledger Management is always ready to assist in refining your bookkeeping practices or improving cash flow through specialized CFO services.
• Practical advice and tools to help you run your field service business.

Either method you choose, if you are using your own vehicle, or are reimbursing your cleaner’s mileage, it is important to keep precise records of the mileage used. If you are using an Excel Spreadsheet, you will want to separate out the Cost of Goods Sold from all other business expenses. Cost of Goods Sold is the direct cost for you to clean a home. These expenses include cleaning supplies, driving expenses from each client’s home, and labor costs (whether you or an employee is cleaning). You can do this using an Excel spreadsheet or accounting software. Use your cleaning log sheets to help you record your revenue for the week.

Additionally, online bookkeeping services for house cleaning generate real-time financial reports, allowing house cleaning businesses virtual accountant to make informed decisions promptly. Whether it’s assessing profitability, tracking expenses, or preparing for tax season, these reports provide valuable insights. Many online bookkeeping platforms integrate with other business tools, such as invoicing and payment processing.

Basic bookkeeping tasks for your Maid Service

Compensation structures, such as hourly wages versus salaried positions, affect financial planning and payroll tax obligations. Understanding these obligations ensures compliance and avoids penalties. For budget-conscious entrepreneurs, Wave Accounting offers a free platform with essential functionalities like invoicing, receipt scanning, and basic reporting. While it lacks advanced features, it’s a practical option for startups or small businesses with straightforward needs.