In short

Accounting for cleaning companies focuses on contract and client profitability: billed rate versus labor hours, labor cost including payroll taxes and travel time, supply cost per contract and route efficiency. It also covers pricing reviews before contract renewals, cash forecasting for payroll-heavy weeks and year-end schedules for vehicles and equipment.

Contract profitability

A commercial contract priced per month can quietly become unprofitable as the client adds rooms or expects extra tasks. Comparing each contract's monthly billing with the labor hours and supplies charged to it shows which contracts need repricing at renewal.

True labor cost

Hourly wages are only part of labor cost. Employer payroll taxes, workers' compensation premiums, paid travel time between sites and training all add to it. We calculate a loaded hourly cost so your pricing reflects reality.

Route efficiency

Residential routes with long drives between homes cost more in paid travel and fuel. Labor and mileage data by route show whether clustering clients or adjusting service areas would help.

Cash planning

Payroll is weekly or biweekly; commercial clients may pay thirty days after month end. A cash forecast shows how much working capital the business needs as it grows.

Growth decisions

Before hiring a supervisor or adding a vehicle, we model the cost against the additional contracts it would support.

Reporting we prepare

Cleaning companies win or lose on labor efficiency. Our monthly package shows revenue and direct labor by contract or route, supply cost as a percentage of revenue, and gross margin per recurring client. When a contract's labor hours creep up while the price stays flat, the report makes it visible early enough to renegotiate or adjust staffing.

We also track customer concentration, since many cleaning businesses depend on a few commercial accounts, and prepare a 13-week cash forecast that accounts for payroll timing and slow-paying commercial clients.

Key terms

Definitions for terms used on this page:

  • Working Capital: Working capital is current assets minus current liabilities, the resources available to run day-to-day operations.

Cleaning Services problems this addresses

  • Many small recurring invoices and card payments to reconcile
  • Cleaners travel between sites, which affects pay and cost
  • Classifying cleaners as employees or contractors is a common risk
  • Commercial contracts may be underpriced without anyone noticing
  • Supplies and equipment are bought in small, frequent purchases