Secrets Of Basic Book Keeping For Small Window Cleaning Businesses – A Guide

Written By: Archie Campbell on June 23, 2010 No Comment

If you own a small window cleaning business, you are most likely earning enough to make ends meet but not enough to employ a permanent accountant. You still need a rudimentary book keeping system in order to file your tax and VAT returns and to know if you’re making a profit or not. Below is some more information about basic book keeping for small window cleaning businesses.

The two most basic bookkeeping items you are going to need is a receipt book as well as an invoice book. The receipt book is for when you make cash sales and the invoice book for when you grant credit to a client (something you should only do for repeat customers).

The next important element of your bookkeeping system will be to keep all documents related to business expenses. If you buy a new bucket, keep the receipt. If you have the delivery vehicle serviced, keep the receipt. You must also have a wage register with the names of all your workers and let them sign for their weekly pay.

At the office you should have a cash book, into which all these income and expenses are then entered on a daily basis. You also need registers to keep track of credit sales and of business related items you bought on credit. These are called accounts receivable registers and accounts payable registers.

If you only had cash transactions during a particular month, so there’s nobody owing you money and you owe nobody any money at the end of the accounting period (month), the the difference between the income and expenditure shown by your cash book represents your gross profit for that month.

If you had only cash transactions during the month, so nobody owes you anything and you don’t owe anybody anything either, the difference between the expenditure and income columns of your cash book will show the business’s gross profit for the month.

If you bought anything on account during the month, e. G. Cleaning material, which hasn’t been paid yet, this has to be deducted from your gross profit because obviously once you’ve paid it you will have less in the bank. Similarly, if you gave credit to one or more customers and they haven’t paid you yet, you must add that to the profit for the month shown by your 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.

Having clean windows is important if you would like your office building or home to look good. You will find window cleaning services London that you can employ. These are professional window cleaners that will get the job done.