Real Estate

Ways To Handle Basic Book Keeping For Small Window Cleaning Businesses – A Guide

If you are the proud owner of a small window cleaning business, you most likely don’t have sufficient money to employ a bookkeeper or an accountant of your own. You’ve still got to maintain some accounting records of course, otherwise you won’t be able to compile your tax and VAT returns, and you will have no way to determine whether your business is running at a profit or a loss. Below are guidelines on basic book keeping for small window cleaning businesses.

In the first place you need a receipt book and an invoice book. The receipt book is used when a customer pays you in cash and you have to provide him with proof of payment. The invoice book is for when you provide credit to a customer (only advisable with regular customers!).

Your next step is to file all documents pertaining to company related expenses. If you buy cleaning material and pay cash, keep the cash slip! The same goes for petrol, maintenance of your delivery vehicle et cetera. For wages you need a wage register where the employee can sign for the receipt of his weekly pay.

At the end of the day you will then need a cash book, an accounts receivable register and an accounts payable register.

Now use the receipt book mentioned above and enter all the money that you received during the day on the left hand side of the cash book. Use the expense vouchers to write down all expenses on the right hand side. There should be columns for the total amounts, and also columns showing the nature of the income or expense. Include a column on the expenses side for the total of the wage register. At the end of the month, when you add up all the different columns, you’ll know exactly how much you made in sales and how much you spend on things like cleaning materials, gas, wages etc.

If you had credit sales, the invoices from your invoice book should be entered in the accounts receivable register in numerical order. At the end of the month you will be able to get a total for credit sales therefore. The same is true for items you bought on credit, which goes into the accounts payable register.

If your accounts receivable register shows that you had credit sales during the month, which haven’t been paid yet, that amount has to be added to the profit shown by the cash book, because if it had been paid you would have had more money in the bank. The same is true for credit purchases: if you owe money to suppliers at the end of the month, that amount must be deducted from your profit according to the cash book.

If you follow the basic book keeping for small window cleaning businesses tips above, you will get a very good idea of whether your business is being run at a profit or not, and what your major expenses are.

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