Essential Record-Keeping for Carpet Cleaning Businesses
With the end of the tax year fast approaching, business owners should be getting their records in order. This will be significantly more difficult for businesses that struggle to keep their books up to date - you might find yourself with months of paperwork to work through! Here are our tips for effective bookkeeping as a cleaning business.
Keep track of cash flow
Income
Keeping track of your income from cleaning jobs is the most important figure from a tax standpoint. It also allows you to see how well your business is doing, and understand how much money you have available for expenses.
Expenses
While expenses are important to know for tax purposes, they're also important for business health. By understanding your expenses, you can adjust your prices, calculate your profit and keep your business out of the red.
Your expenses are likely to include equipment, payroll, insurance, taxes, marketing, utilities and administrative costs. You should save every receipt, no matter how small the cost.
Keep detailed invoices
Invoices are useful to both you and your clients. At the very least, they should contain the service offered, the cost, your contact details and the date, along with a way to pay you. This allows you to maintain a record of every job that you have completed.
Keep track of whether invoices have been paid or not. You should also decide whether to track income when an invoice is issued (known as accrual accounting) or when it is actually paid (known as the cash method) and make sure to do this consistently.
Double check regularly
With so many transactions in and out of your account, it's possible for something to go unnoticed. By regularly checking your paperwork against your bank statements, you can ensure that your records are accurate.
Monitor employee hours
It's important to pay employees accurately. Whether they are paid hourly or per job, you should know exactly how much time every employee has worked for. This will also allow you to process your payroll quickly each month. You can automate this process to make it even quicker.
Store documents carefully
Whether your records are digital, paper or a bit of both, you never know when you might need to find a specific document. Ensure that you store paperwork in order, so that you can find things easily at short notice. Digital files are easier to search through, but should still be organised into logical folders.
Hire a bookkeeper
If you struggle to maintain or organise records on top of all the pressures of running a cleaning business, a professional bookkeeper can help you to get things in order. There is also a wide variety of software available to help you track everything.
Become an NCCA member
The National Carpet Cleaning Association (NCCA) offers a number of courses and forums to its members. By joining, you can gain access to expert advice to keep your books in shape. Every member also receives our stamp of accreditation and appears in our directory, letting customers know that you are a trusted business.
