Bookkeeping and Accounting for Home Cleaning Services

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.

It's vital to track your cleaning equipment expenditures accurately for bookkeeping purposes. These expenses can be categorized under "Cleaning Supplies" or "Janitorial Expenses". This category should cover everything from brooms and mops to high-end power washers or industrial-grade vacuums. Ensure that you keep all the receipts for your purchases. All this will help provide an accurate representation of your operational costs, contributing to the timely preparation of financial reports and aids in effective planning and decision making.

As a home cleaning service provider, setting up payroll starts with obtaining an Employer Identification Number (EIN) from the IRS. After acquiring an EIN, you have to determine the pay period (weekly, bi-weekly, monthly). Then, set up a system to manage your payroll; you can either do this manually, use a payroll software, or hire a payroll service.

When it comes to managing employee wages, you have to first classify your workers as either employees or independent contractors, as this affects how you pay wages and taxes. Wages could be hourly, daily, or salaried and must at least meet the federal or state minimum wage, whichever is higher. To manage benefits, decide on which benefits you want to offer (such as health insurance, retirement plans, vacation and sick leave). Be sure to comply with all required governmental regulations.

A bookkeeper can help keep all these payroll and wage management tasks in order. A bookkeeper is well-versed in these operations and can ensure that you are in compliance with all applicable laws and regulations. It's also essential for maintaining accurate financial records and managing costs effectively.

Nope! All bookkeeping is completed in-house.

Your bookkeeper will be your main point of contact, but at times you might hear from another member of your team. This is usually when your bookkeeper goes on vacation, is sick, or otherwise unavailable.

We handle the bookkeeping for you but sometimes we’ll need your input, especially at year-end. On average, expect to spend 15 minutes each month answering questions for your bookkeeper, or uploading supporting docs.