Accounting Software for Your Cleaning Service: 3 Simple Tips

September 30, 2021

Accounting doesn't have to be hard. Here are some accounting softwares for cleaning service and 3 tips to help you save time for your business.

Photo by Kelly Sikkema on Unsplash

Now that you have started your cleaning service and read our blog on the start-up cost of a cleaning business, it’s time to keep it running smoothly. Running a cleaning service requires hard work similar to a car, you need to keep all the gear running smoothly in order to keep it moving forward. But instead of the transmission or an engine, the ‘gears’ for a cleaning business are accounting, HR, and Marketing. One important part of your business is accounting, the part that controls the cash flowing in and out of your company. You must keep track of your income, expenses, and invoices, while keeping your business in compliance with government regulations. Here are some accounting softwares and tips to help with your cleaning service.

Accounting software to simplify your business

Accounting is an important part of business, keeping track of cashflows and providing financial information for future investment and expansion. With no time on your hand, how should you deal with accounting and bookkeeping that many cleaning companies struggle with? While there are many accounting pdf and templates available online that you can use to help keep track of accounting. However, this still requires you to take time away from your business to filter information to put into these files. Fear not, accounting software is here to help, simplifying accounting for your cleaning service.

The amazing part of using accounting software is that it can semi-automate your accounting needs. Assisting to keep track of expenses, sending and collecting invoices, and assist with your taxes. Giving you more time to focus on other parts of your business that really matters, like customer relations and employee development. While accounting tasks will be similar for all cleaning businesses, the needs will be different depending on your team size and your service operations. Take a look at these three accounting software that we thought are great for different cleaning service needs.

For individual cleaners

If you are an individual cleaner, most of the time you will be only dealing with a few clients at once. Having a smaller number of clients reduces the need for an extensive accounting tool. It may be easy for individual cleaners to just keep track of everything on a piece of paper or word doc to keep costs low, but having accounting software will help you when you need to collect and send invoices and keep track of your client, saving you a lot of time.

Zipbooks is a free accounting software that is perfect for individual cleaners. It offers four simple features; accounting, billing, intelligence, and expense. With their free ‘starter’ subscription, you are able to send out unlimited invoices, manage unlimited clients, and invoice payment via Square and Paypal with one connected bank account. This is great for single individual cleaners who have a few clients and want to keep costs down, helping with invoices and payments.

For small businesses

For a small cleaning businesses owner, there are more items on the table you have to deal with compared to an individual cleaner. You have a growing team to manage, multiple expenses to track, additional invoices to follow, and more clients and business partners to tend. There are just more items you need to take care of in order to keep the business running. You need a tool that can make it easier to manage your team and keep up with your business needs as it grows.

Quickbooks is a famous accounting software utilized by businesses, and accountants, all across the world. Everyone has heard of Quickbooks, they are the accounting software to use by all businesses. They offer many different products for people who are self-employed, to enterprise solutions for a big company. Quickbooks also provides solutions for payroll, supplies, POS, and other services a business would need. Their products are pricier compare to other accounting software, but their flexibility is great for small businesses looking to grow into huge organizations.

For contractors

As a cleaning contractor, you will be working with multiple cleaning projects and clients at one time. It is important for a contractor to keep track of each part of their projects like man-labor hours and product expenses. These are important items on invoices that you can show to the clients, to explain to them how much they are paying and why. Similar to a small business you will be working with a team of cleaners, helping you to complete projects. You want a tool that multiple team members can access, to input information that you need to show to the clients on a timely basis.

Freshbooks is a simple accounting software for contractors, freelancers, and small businesses. Their interface is user-friendly, and setup is also quick and easy. They put a lot of value into customer interaction. Freshbooks offers quick and responsive one-on-one customer service, where you get connected to a real-life human, instead of a robot. They offer automatic invoices, online payments, and payment reminders. You can also track when a client opens and pay your invoice, so you don’t need to guess if they have received it or not. Their project management tool grants permission to your employees accesses to track their time, expense and update you on a project, making project management easier.

Testing them out

Many businesses tend to compare Freshbooks and Quickbooks when looking for an accounting solution. While Quickbooks has been in the accounting field for a long time. Freshbooks is a great contender to this seasoned competitor. For us, we can’t say which one is better than which. They both have their strength and weakness, test out both accounting software to see what fits your cleaning service needs.

There is no defined best choice for accounting software, pick the one that best fits your business needs. There are other great accounting softwares like Wave, Xero, and Sage, which all have their own unique selling point. Most of them offer either a free 30-day trial or a discount for the first few months. Utilize this free or discounted trial offering and test different products out for yourself. Investing time into picking the right tool will help your cleaning service in the long run. Not to mention the time it cuts from doing it all yourself.

Accounting tips to help with your cleaning service.
Photo by Nataliya Vaitkevich from Pexels

Three tips to help your cleaning service

1. Open a Business Bank Account

Many small business owners and freelance utilize their own bank account as their business account to receive all payments and expenses in one place. This may be easy for you to collect money and pay for business and personal expense in one account. However, when it comes to taxes and growing your business. It’s better to keep bills separate by opening a bank account for your business.

There are many benefits to having a business bank accounts. Helping to keep track of your revenue and expense for your business. So you don’t need to separate out your personal expenses from your business ones. Having an account also makes it easier to figure out which client payment has come through and which business expenses are paid for. Bank transfer and payment will take some time to process. Having a separate account will show you how much operation fund you have currently, so you don’t have to guess if you have enough for certain items you need now. Opening a business bank account it will make doing your taxes a lot easier, showing you all your income and deductibles.

2. Open multiple business bank accounts

You may want to have a few business bank account to help protect and invest for the future. You may want to open three business bank account:

  1. Short term account, for a one to two month operation
  2. Long term account, for a long-term six month to one year operation
  3. Leftover account, for investment

The short-term bank account would cover one to two months of expense. When you have an overflow of money from that account, you can start a long-term account for long-term operation, which should cover up to six months to one year of expense or more. This fund is used for a ‘rainy day’ when business is not going well due to a pandemic or problems down the road. This long-term account will help you to get through tough times. Then when you have money leftover from both accounts, then it’s time for an investment account to invest the money back into your business.

3. Keep your receipts

Many of us don’t like to keep receipts, but for business, keeping track of your receipts is a good way to locate your expenses. Receipts are small and easy to lose, many of us will just throw out our receipt once we left the store. Receipts are valuable not only are they a way to track expenses. They are also useful to keep track of your tax-deductible and help you show records when you get audited. Both Freshbooks and Quickbooks, the accounting software we mention for your cleaning service, will have a receipt tracker integrated into their software. To make it easier to keep track of your receipts (another reason to use accounting software).

Small purchases of cleaning products over time will add up to a big expense. Especially, if you are an individual cleaner or a small cleaning team. By having your receipts, you can anticipate these spendings and keep records. So you don’t get surprised by your expense at the end of the month. Updating your accounting information with your receipts and invoices on your accounts payable to accounts receivable will help info you of the financial health of your cleaning services.

If you want more accounting tips, Freshbooks has a blog with more accounting tips that can help assist your cleaning service.

Sometimes its better to hire an expert to do your accounting needs.
Photo by Scott Graham on Unsplash

If all else fails, hire an expert

For some cleaning service owners, there just isn’t enough time to do your accounting need by yourself. Just like why people hire your professional cleaning service, maybe it’s time to hire a professional accountant to assist with your accounting needs. According to the US Bureau of Labor Statistics, the median hourly rate of an accountant is $35. Depending on your business and your project needs you will be spending about $100 – $400 on one. But, if your cleaning business requires more accounting assistance, then you may have to consult with a CPA, Certified Public Accountant, which will cost more but it will be worth it.

Hiring an accountant can help your cleaning service greatly when you don’t have the time or effort. They will offer expert service to help with your expense and taxes. It will cost you a bit more to hire one, however, the payoff is more time for you to grow and maintain your business.

Accounting doesn’t have to be hard

Overall, accounting doesn’t have to take an arm or leg to do. There is an abundance of great accounting software and tips out there that can help you cleaning service. Accounting software for cleaning service like Zipbooks, Freshbook, Quickbook, and more will greatly reduce the time you spend on bookkeeping and invoices. Organize your financial statements now and gain control of your accounting.

If you want more tips and tricks for cleaning services, read our other blogs on Taskbird. Taskbird is an app that helps to organize, schedule, communicate with your team of cleaners. Helping you to track your cleaning project and manage your team with ease. Check Taskbird out on the App Store and Google Play Store.

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By Zhi Hao Liu