If you have a small window cleaning business, you probably don't have the funds to employ a full-time accountant or even a bookkeeper. You still have to keep some financial records though, otherwise you won't be able to complete your VAT and tax returns and you won't even know if your business is making a profit or a loss! What follows are some guidelines to help you with basic book keeping for small window cleaning businesses.
To start off with you need an invoice book and a receipt book. The invoice book is if you should provide credit to some of your customers. You then issue an invoice and make then sign on the invoice. The receipt book is meant for cash sales, which should hopefully cover the bulk of your work.
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 end of the day you will then need a cash book, an accounts receivable register and an accounts payable register.
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 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 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.
Following the basic book keeping for small window cleaning businesses guidelines above will give you an excellent idea of the profitability or not of your business.
To start off with you need an invoice book and a receipt book. The invoice book is if you should provide credit to some of your customers. You then issue an invoice and make then sign on the invoice. The receipt book is meant for cash sales, which should hopefully cover the bulk of your work.
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 end of the day you will then need a cash book, an accounts receivable register and an accounts payable register.
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 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 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.
Following the basic book keeping for small window cleaning businesses guidelines above will give you an excellent idea of the profitability or not of your business.
About the Author:
Considering becoming self employed as a professional window cleaner ? All you need to know and more on window cleaning services now in our comprehensive window cleaners guide.
1 comment:
If transactions recorded on daily basis then there is no need of checking back accounts of book keeping. There must be balance between cash and credit transactions.
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