Cleaning and janitorial bookkeeping: hours per account

In a cleaning business, labor is almost everything. Supplies and equipment are a small share of the cost; the rest is people’s hours. That makes the books simple in one way and unforgiving in another: the only question that really matters is whether each account pays for the hours it takes — and the answer changes every time a crew changes, a building grows, or a wage goes up.

Hours per account, every month

For commercial janitorial work, every account should have an hours budget — the hours the price was built on — and the books should compare it with the hours actually worked, monthly.

Accounts drift. A tenant moves in, a floor opens up, a crew takes longer than the one before. Without the comparison, an account priced profitably two years ago can quietly lose money every night. Cost the hours at the burdened rate — wages plus payroll taxes, workers’ compensation and benefits. The true hourly cost calculator works it out.

For residential cleaning, the same logic applies per visit: time on site plus drive time, against the price of the visit.

Payroll is the business

Cleaning companies typically run large payrolls of part-time staff with high turnover. That puts payroll accuracy at the center of the books:

• Payroll liabilities reconciled monthly — what was withheld and owed against what was actually deposited and filed. A missed payroll tax deposit is the most dangerous late payment a business can make; see you missed a payroll tax deposit.
• Overtime, which appears quickly when staff cover several accounts or fill in for absences.
• Classification. Paying cleaners as 1099 contractors while controlling their schedules, supplies and methods is a common and costly mistake. See 1099 or W-2.

Tips

Residential cleaning customers often tip. Tips paid to employees are generally part of their wages for payroll purposes and should go through payroll rather than being handed over informally. Card tips collected by the business are money owed to staff until paid out. Your payroll provider or CPA can confirm the reporting that applies to you.

Supplies per account

Chemicals, paper products, liners and consumables should be coded to the account they are used on — especially where the contract includes supplies. Accounts that include restroom paper and liners can have supply costs that swing with occupancy, and a contract priced with supplies included needs watching.

Contracts and billing

Commercial cleaning is usually billed monthly on a fixed contract. Track, per account: contract value, extras billed (floor work, carpet cleaning, post-construction cleans), and how long the customer takes to pay. Extras are often the highest-margin work in the business and the most likely to go unbilled when a supervisor forgets to report them.

Residential recurring clients paying by card or autopay are simpler, but the same principle holds: know what each client is worth and what it costs to service. See what a recurring contract is actually worth — the retention logic transfers directly.

Bonding and insurance

Many commercial clients require janitorial bonds and specific insurance. Track the policies, their renewal dates and which contracts depend on them. The premiums belong in the overhead that every account’s price has to cover.

Related

• How much should I pay myself?
• Surviving your workers comp audit
• The eight numbers to look at every month

General information, not tax or legal advice. Payroll, tip reporting and worker classification rules vary between federal and state agencies.