Bookkeeping for Cleaning Businesses: The Complete Guide

Good bookkeeping saves cleaning businesses $3,000 to $10,000 per year in missed deductions. You need to track income, expenses, and taxes from day one. This guide covers methods, software, and tips for your cleaning business finances.

Why Is Bookkeeping Important for Cleaning Businesses?

Bookkeeping means recording every dollar that comes in and goes out. Without it, you lose money and miss tax savings.

Most cleaning businesses handle dozens of clients. Each one pays at different times. Good records help you know who owes you money.

You Save Money on Taxes

Cleaning businesses have many tax deductions. Supplies, gas, insurance, and equipment all lower your tax bill. But you can only claim them if you have records.

The average small cleaning company misses $3,000 to $10,000 in deductions each year. That is real money left on the table.

You Know Your True Profit

Revenue is not profit. After supplies, gas, and insurance, your take-home pay may be much less. Bookkeeping shows your real numbers.

When you know your true profit, you can set better prices. You can also cut costs that eat into your earnings.

You Stay Out of Trouble

The Internal Revenue Service can audit any business. If you have no records, you could face fines or back taxes. Good books protect you.

What Bookkeeping Method Should You Use — Cash or Accrual?

There are two main ways to track money. Each has pros and cons. Most small cleaning businesses do best with the cash method.

Cash-Basis Accounting

You record income when you get paid. You record expenses when you pay them. This is the simpler method.

Most solo cleaners and small teams use cash-basis. It matches what you see in your bank account.

Accrual-Basis Accounting

You record income when you earn it, even before you get paid. You record expenses when you owe them, even before you pay.

Accrual works better for larger companies. It gives a clearer picture when you have many unpaid invoices.

Cash Versus Accrual Comparison

What Expenses Can Cleaning Businesses Deduct?

Every dollar you deduct lowers your tax bill. Cleaning businesses have many costs that count as deductions. Track them all.

Common Deductions Table

How to Track Deductions

Save every receipt. Take a photo with your phone right away. Store receipts in a folder or use an app.

Keep a mileage log for every drive to a client. Write down the date, where you went, and the miles. This is required for vehicle deductions.

How Do You Set Up a Simple Bookkeeping System?

You do not need a complex system. Start simple and grow from there. Here are the steps.

Step 1: Open a Business Bank Account

Never mix personal and business money. Open a separate checking account for your cleaning business. Most banks offer free or low-cost business accounts.

Step 2: Pick Your Bookkeeping Method

Choose cash or accrual. For most small cleaning businesses, cash-basis is the best choice. It is simple and easy to manage.

Step 3: Choose a Record-Keeping Tool

You can use a spreadsheet, an app, or bookkeeping software. A spreadsheet works for the first few months. Software is better as you grow.

Step 4: Set Up Expense Categories

Create folders or tags for each type of expense. Common ones are supplies, gas, insurance, marketing, and software. This makes tax time easy.

Step 5: Record Everything Weekly

Set aside 30 minutes every week to update your books. Log all income and expenses. Check that your records match your bank account.

1. Open a business bank account — keep personal and business money separate
2. Pick your bookkeeping method — cash-basis works best for most cleaners
3. Choose a tool — spreadsheet, app, or software
4. Create expense categories — supplies, gas, insurance, marketing
5. Update your books weekly — 30 minutes each Friday is enough

What Bookkeeping Software Works Best for Cleaning Businesses?

Good software saves you time and reduces mistakes. Here are the top choices for cleaning businesses.

Software Comparison

What to Look for in Software

• Bank connection — auto-imports your transactions
• Invoice creation — send professional invoices to clients
• Expense tracking — sort and tag your costs
• Tax reports — makes filing season faster
• Mobile app — log expenses on the go

How Do You Track Income from Multiple Clients?

Most cleaning businesses serve many clients. Each one pays on a different schedule. You need a clear system to track every payment.

Use an Invoice System

Send an invoice after every job or on a set schedule. Number each invoice so you can find it later. Include the date, service, and amount.

Use our free invoice generator to create clean, professional invoices.

Track Who Owes You Money

Keep a list of unpaid invoices. Check it every week. Follow up with clients who are late on payment.

Late payments are common in cleaning. Set clear payment terms, like "due within 14 days." This helps you get paid on time.

Record Every Payment

Log each payment the day you receive it. Note which client paid, how much, and the method. This could be cash, check, or card.

If a client pays in cash, write a receipt. Cash payments are easy to forget. A receipt keeps your records accurate.

When Should You Hire a Bookkeeper or Accountant?

You can do your own books at first. But at some point, hiring help makes sense. Here is how to decide.

Handle It Yourself If

• You have fewer than 20 clients — the workload is manageable
• Your income is under $75,000 per year — your taxes are still simple
• You use bookkeeping software — it does most of the work for you
• You enjoy working with numbers — some owners like doing their books

Hire a Bookkeeper If

• You have employees — payroll adds complexity
• Your income exceeds $100,000 per year — more money means more to track
• You fall behind on record-keeping — late books cause tax problems
• You want to focus on cleaning, not paperwork — your time has value

What Does a Bookkeeper Cost?

A part-time bookkeeper costs $200 to $500 per month. A certified public accountant costs $150 to $400 per hour. Many cleaning businesses start with a bookkeeper and add an accountant at tax time.

What Are Common Bookkeeping Mistakes Cleaning Businesses Make?

These mistakes cost cleaning businesses money every year. Avoid them and you will be ahead of most competitors.

Mixing Personal and Business Money

This is the most common mistake. When you use one account for everything, tracking gets messy. Open a separate business account from day one.

Not Saving Receipts

No receipt means no deduction. The Internal Revenue Service requires proof for every claim. Save paper receipts or take photos with your phone.

Forgetting to Track Mileage

Driving is a major cost for cleaners. The mileage deduction can save you $2,000 to $5,000 per year. But you must keep a log with dates, miles, and purpose.

Waiting Until Tax Time to Do Your Books

If you wait all year, you will miss expenses and make errors. Update your books weekly. It only takes 30 minutes.

Not Setting Aside Money for Taxes

Self-employed cleaners must pay estimated taxes four times per year. Set aside 25 to 30 percent of every payment. Put this money in a separate savings account.

Ignoring Late Payments from Clients

Unpaid invoices hurt your cash flow. Follow up within one week of a missed due date. Be polite but firm about your payment terms.