Many bookkeeping services can offer expert assistance to get your finances in order and keep them that way. Just like with bank reconciliation, ensure your credit card statements align with your small business bookkeeping records. The process is similar, involving matching transactions on your credit card statement to corresponding entries in your accounting system. It’s vital to track your cleaning equipment expenditures accurately for bookkeeping purposes.

Keep all of your receipts.

This signifies no unadjusted entries were made in prior years, simplifying tax filing. Finally, verify that loan balances on your balance sheet match year-end loan statements, with separate accounts for interest, late fees, and principal. Match each credit card charge to a corresponding receipt to ensure accuracy. We sync seamlessly with your financial accounts and tools to keep your books up-to-date and save you the time and effort of manually uploading documents. Not sure where to start or which accounting service fits your needs? Our team is ready to learn about your business and guide you to the right solution.

QuickBooks Support

• 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.
• Dropbox, Google Drive, a digital album on your phone, or even a shoebox of physical receipts are all ways to manage your receipts and keep track of your expenses.
• In the past, Quickbooks Online had a reputation of being slow, clunky, and not as robust as the desktop version of the tool.
• 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.
• Maxim Liberty Bookkeeping Services has been providing professional virtual bookkeeping services since 2005.
• 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.

Whether you’ve hired a bookkeeper to manage the numbers for your cleaning business or are still doing it yourself, you need to have the right financial systems in place. The right systems and processes will make sure your numbers stay organized and you don’t run into any hidden surprises come tax time. You https://www.bookstime.com/ don’t have to spend hours balancing your books or sending out invoices. Say goodbye to inefficient business management and hello to fast, efficient service software.

Setting up Your Chart of Accounts: Organizing Financial Categories

He created ZenMaid scheduling software to help other maid service owners do the same. One way to better understand your numbers as a business owner, is to use tools designed to help simplify the bookkeeping process. Customize your FreshBooks experience with a wide range of integrated apps. Import your data from over 100 different platforms that seamlessly integrate with FreshBooks, including some of the biggest names in business software. From payroll to customer service and beyond, we’ve got you covered. If you are using Excel, you can create an Expense worksheet to record your monthly expenses.

• Bookkeeping helps organize your financials for year-end tax reporting.
• A credit card payment itself isn’t an expense; it reflects settling a previous expense you categorized earlier.
• When you get back to the office you can look up on Google Maps to see how many miles you traveled.
• Don’t worry—you don’t have to spend hours sifting through mountains of paper.

Overview of Tax Deductions

You need to track your income and expenses to ensure you’re profitable. Accurate records can also help you identify areas where you can save money, such as reducing your supply costs or finding ways to increase revenue. Regardless of the path you choose, remember that accurate and organized bookkeeping is essential for making informed business decisions, Certified Public Accountant maximizing savings, and maintaining compliance. Regularly review your financial statements, seek professional advice when needed, and leverage technology to streamline your bookkeeping processes. By doing so, you’ll be on the right track to financial success in your cleaning business. In the competitive cleaning industry, bookkeeping is not just a mundane task; it’s a vital tool for your business’s success.

Calculating COGS is important because it helps you determine the cost of cleaning a home. Instead, pay yourself a draw and use that money to cover personal expenses. This will make your bookkeeping much cleaner and make it easier to estimate your taxes. If you are using an Excel Spreadsheet, you will want to separate out the Cost of Goods Sold from all other business expenses. These expenses include cleaning supplies, driving expenses from each client’s home, and labor costs (whether you or an employee is cleaning).

Do I need to do Bookkeeping for my Maid Service?

• Once you’ve determined how and how much to pay yourself, then you’ll need a comprehensive payroll solution to smoothly distribute your hard-earned cash.
• First and foremost, know the differences between an employee and a contractor.
• There are many management platforms out there, but beware, some are much more difficult to learn than others.
• If you want to separate your business finances from your personal finances, consider setting up a limited liability company (LLC).
• Whatever business structure you choose for your small business, you need to apply for an employer identification number (EIN).

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. All of the supplies you buy throughout the year are considered business expenses, including the large purchases you make. If you purchase any single item worth more than $2,500 then you must give the invoice bookkeeping for cleaning business or receipt to your accountant.

The Ultimate Guide to Checklists for Cleaning Businesses

Yes, home cleaning service businesses typically qualify for several specific tax deductions or credits. These might include deductions for business-related vehicle mileage, cleaning supplies, home office expenses, and insurance premiums. Also, if you employ other cleaners, you might be able to claim deductions for their wages and benefits. Any expenses that are ordinary and necessary for business operations are generally tax-deductible. Nevertheless, tax laws often change, and they can vary greatly depending on your location. Therefore, it’s strongly recommended to consult with a financial advisor or a tax professional to ensure you’re getting the most out of your deductions.