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.
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).
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 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.
The cash book is for all cash income and expenses. Use the receipt book above to enter all your cash income on one side, and the expense vouchers you kept to list all your expenses on the opposite side. You also need a column reflecting the total amounts, and then columns indicating the type of income or expenditure it was. This way you can easily add them up at the end of the month and see how much you earned from customers during the month, and how much you paid for cleaning materials, wages, petrol et cetera.
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.
The above describes very basic book keeping for small window cleaning businesses. Although not sophisticated, it will give you a very good idea of whether your business is generating a profit or not.
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MLA Style Citation:
Mazur, Grazina "A System Of Basic Book Keeping For Small Window Cleaning Businesses – A Guide." A System Of Basic Book Keeping For Small Window Cleaning Businesses – A Guide. 26 Oct. 2011. uberarticles.com. 16 Feb 2016 <http://uberarticles.com/real-estate/secrets-to-handle-basic-book-keeping-for-small-window-cleaning-businesses-a-guide/>.
APA Style Citation:
Mazur, G (2011, October 26). A System Of Basic Book Keeping For Small Window Cleaning Businesses – A Guide. Retrieved February 16, 2016, from http://uberarticles.com/real-estate/secrets-to-handle-basic-book-keeping-for-small-window-cleaning-businesses-a-guide/
Chicago Style Citation:
Mazur, Grazina "A System Of Basic Book Keeping For Small Window Cleaning Businesses – A Guide" uberarticles.com. http://uberarticles.com/real-estate/secrets-to-handle-basic-book-keeping-for-small-window-cleaning-businesses-a-guide/
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