Bookkeeping for cleaning companies
that tracks the stuff Workers' Comp auditors actually ask about
Residential, commercial, janitorial, and move-out crews. We track hours per cleaner per job, supply cost per clean, W-2 vs 1099 exposure, and per-property profitability — the numbers generic retail bookkeeping never touches.
What we look at every month
These are the numbers we reconcile and review before we close your books for the month.
Hours per job by cleaner
We match clock-in/clock-out data (Jobber, Housecall Pro, or a time clock) to completed jobs so gross margin per cleaner is a real number, not a guess.
Supply cost per job
Costco runs, Amazon orders, and janitorial distributor invoices divided by completed cleans in each category (residential vs commercial vs move-out).
Vehicle mileage by property
We separate business miles from personal, apply the IRS standard rate, and allocate drive time against revenue per property — so you see which clients are really profitable.
Recurring vs one-time revenue
Bi-weekly and monthly contracts broken out separately from one-off deep cleans, move-outs, and commercial bids. MRR visibility for a service business.
W-2 vs 1099 split
Hours paid to employees vs contractors reviewed monthly so the annual 1099 run and the Workers' Comp audit don't produce surprises.
Workers' Comp audit tracking
Payroll by class code kept in sync with your policy. The mid-year and year-end premium audit reconciles to the numbers we already have on file.
Per-property profitability
Revenue — labor — supplies — drive time — franchise royalty (if applicable) at the client level. Tells you which accounts to renegotiate, reprice, or drop.
Drive-time utilization
Total paid hours vs billable on-site hours. If drive-time utilization drops below 65–70%, routing is costing you more than supplies ever will.
What usually goes wrong
The five bookkeeping mistakes we see most often when we take over a cleaning company's books.
Misclassifying cleaners as 1099 when they should be W-2
If you set the schedule, provide the supplies, and direct the work, the IRS factor test makes your cleaner a W-2 employee — no matter what the agreement says. Misclassification is the single biggest audit trigger for cleaning companies, and back-taxes plus penalties can take out a small operation.
Not tracking supply cost per job
Costco runs and Amazon orders get dumped into a single 'Supplies' line. Without per-clean cost, you don't know whether you're losing money on residential recurring contracts and subsidizing them with move-out work.
Mixing personal vehicle use with business mileage
Using the personal vehicle for both family and business without a mileage log means the IRS disallows the whole deduction on audit. The fix is a contemporaneous log — GPS export or manual — kept throughout the year.
Ignoring Workers' Comp audit exposure
The annual Workers' Comp premium audit re-rates payroll against class codes. If you paid 1099s for work that looks like W-2 work to the auditor, you get re-billed retroactively. We keep classification documented year-round so this audit is a rubber stamp, not a bill.
Venmo and Cash App income falling off the books
A tip here, a referral payment there, a cash side job — and suddenly the 1099-K from Venmo shows more revenue than your QuickBooks. We reconcile P2P payments monthly so there's no surprise at tax time.
What your books should tell you every month
Not just a P&L. Operational KPIs you can act on by the 10th of the following month.
Gross margin per cleaner
Revenue generated on the jobs they cleaned, minus their fully-loaded cost (wages, payroll taxes, Workers' Comp). Tells you who to keep, promote, or retrain.
Revenue per recurring client vs one-time
Recurring bi-weekly/monthly contracts are the annuity; one-time deep cleans and move-outs are the side hustle. Know the mix monthly, not at year-end.
Average hours per clean type
Residential vs commercial vs move-out all have different time profiles. If residential drifts over the target, you either raise prices or retrain the crew.
Supply cost as % of revenue
Healthy residential is typically 3–6%. Commercial can run higher because of equipment and chemicals. If your number doubled, a cleaner is taking supplies home or you're being overcharged by a distributor.
Documents we need from you
Connect bank feeds and upload the items below. We handle the rest.
When basic bookkeeping isn't enough
You've outgrown the Essentials plan when any of these show up:
- More than 2 vehicles on the road with active mileage reimbursement
- 5+ W-2 employees or a mix of W-2 and 1099 over 3+ workers
- AP/AR management for commercial contracts with 30+ day terms
- Multi-location or franchise royalty tracking (Merry Maids, Molly Maid, Jan-Pro, ServiceMaster)
- Workers' Comp audit resolution or class-code disputes
FAQs — Cleaning Business Bookkeeping
How do I know if my cleaners should be W-2 or 1099?
The IRS factor test looks at control. If you set the schedule, provide the supplies, direct how the work is done, and the cleaner works primarily for you — they're almost always W-2 employees. 1099 status fits crews that set their own hours, bring their own equipment, work for multiple clients, and price their own jobs. Misclassification is one of the most common audit triggers for cleaning companies because most owner-operators want the simplicity of 1099s but describe a W-2 relationship.
What's a healthy labor cost percentage for a cleaning business?
Residential cleaning typically runs 45–55% labor cost (wages + payroll taxes + Workers' Comp). Commercial and janitorial are usually 55–65% because contracts are more price-competitive. Move-out and post-construction can hit 35–45% because of higher ticket sizes. If you're above the upper end of your segment, you're either underpricing jobs or your drive-time utilization is too low.
Do I need Workers' Comp if I only have 1099 cleaners?
Most states require Workers' Comp regardless of how you classify workers. Insurance auditors look at the actual relationship — not the paperwork. If the auditor determines your 1099s are really employees, the annual Workers' Comp audit can add thousands in back premiums. We track your classification risk year-round and reconcile your payroll against the policy so the annual audit doesn't produce surprises.
Can you handle Jobber or Housecall Pro integration?
Yes. We pull Jobber and Housecall Pro payment exports, reconcile them against bank deposits (Stripe/Square net of processing fees), and match completed jobs to your QuickBooks or Xero ledger. Same workflow for ZenMaid, The Customer Factor, and Service Fusion.
How do you track supply cost per job?
Monthly, we take your supply purchases (Costco, Amazon, janitorial distributors, gas stations for fuel) and divide by completed jobs in each category (residential, commercial, move-out). This gives you supply cost per clean, which is the number that tells you when it's time to raise prices. Healthy residential supply cost is typically 3–6% of revenue.
What about Venmo and Cash App income?
Venmo and Cash App business accounts (and increasingly personal accounts used for business) issue 1099-Ks. Every dollar received for service work is taxable, whether or not a 1099 is issued. We track P2P business income monthly so your books match what gets reported to the IRS.
Can you track mileage on a personal vehicle used for business?
Yes. We set up a mileage log against your route data (GPS export, Jobber route history, or a manual log) and apply the IRS standard mileage rate. The key is separating personal use from business use — if the vehicle is mixed-use, only the business portion is deductible. Most cleaning operators lose hundreds in deductions because they don't log this properly.
Do you handle franchise royalty accounting for cleaning franchises?
Yes — Merry Maids, Molly Maid, ServiceMaster, Jan-Pro, and similar cleaning franchises typically charge a royalty on gross revenue plus a marketing fund contribution. We accrue these monthly so your margins aren't overstated and amortize initial franchise fees over the term of the agreement.
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