Commercial Cleaning
Contract-based revenue sounds stable until commercial clients pay Net 45 and payroll comes due Friday.
The Industry
Commercial cleaning runs on contracts. Monthly agreements with office buildings, medical facilities, retail spaces, property management companies. Recurring revenue that looks predictable on paper. The problem is timing. Commercial clients often pay on Net 30 or Net 60 terms. You clean the building all month, send an invoice, and wait three to six weeks for payment. Meanwhile your crew needs paid this Friday and supplies ran low on Tuesday.
The other challenge is knowing what each contract actually costs you. A $2,800 monthly janitorial agreement for an office building seems profitable. But how many crew hours go into that building each week? What about drive time from the previous stop? Supplies consumed? Equipment wear from the floor buffer? Most commercial cleaning companies track total revenue and total expenses but cannot tell you the margin on any individual contract. Some of those contracts make good money. Others barely break even. Without proper tracking, you cannot tell which is which.
Who This Covers
Who This Covers
Janitorial services, office cleaning companies, commercial cleaning contractors. Any cleaning business in Northwest Arkansas with recurring contracts for commercial spaces including offices, medical buildings, retail stores, and industrial facilities.
What Makes It Complicated
What Makes It Complicated
Commercial clients on payment terms creating cash flow gaps. Multiple contracts at different locations with different cleaning requirements. Crews working evenings and weekends with varying schedules. Supply costs that should be allocated across contracts but usually get lumped together. Bidding on new work without knowing your true costs on existing contracts.
What We Handle
Job costing by contract shows which accounts actually make money after you properly allocate labor, supplies, and overhead. That bank branch you clean three nights a week might run at 35% margin while the office park barely hits 12%. You need this information to know which contract renewals to fight for and where to push for rate increases. When it is time to bid new work, you have actual cost data from similar contracts instead of rough estimates based on square footage and gut feeling.
Accounts receivable tracking keeps tabs on commercial clients who tend to pay slowly. Net 30 quietly becomes Net 45, then Net 60 when nobody follows up. We track aging and flag accounts before they turn into collection headaches. Payroll handles crews with varying schedules across multiple locations. Tax prep captures vehicle expenses for travel between sites, equipment depreciation, and supply costs that cleaning companies routinely undercount.
Contract Profitability
Contract Profitability
Labor hours tracked by contract. Supply costs allocated per job site instead of expensed in bulk. Travel time between locations factored into profitability analysis. QuickBooks configured to show margin by contract so you can see which work earns its keep and which needs repricing or termination.
Receivables and Payroll
Receivables and Payroll
Commercial accounts tracked with aging reports and follow-up before invoices go stale. Payroll processed for crews working different shifts and locations. Overtime calculated correctly for night and weekend work. Tax deposits handled automatically so nothing slips through.
What Goes Wrong
Without job costing by contract, you are flying blind on profitability. You might have 15 commercial accounts and think you are doing well because total revenue exceeds total expenses. But three of those contracts could be losing money while the profitable ones carry them. You keep renewing bad contracts because they generate revenue. You bid similar work at similar rates because the last job seemed fine. Meanwhile your margins shrink and you cannot figure out why the business feels harder even though revenue keeps growing.
Receivables age because nobody watches them systematically. A property management company pays 47 days late every single month. You do not notice because there is no system tracking it. Eventually they owe you two months of payments and you are scrambling to cover payroll. Supplies get purchased when needed and expensed immediately. You have no idea how much cleaning solution, paper products, and trash bags actually go into each contract. Pricing becomes guesswork. Some jobs you underprice and regret. Others you overprice and lose to competitors.
Hidden Unprofitable Contracts
Hidden Unprofitable Contracts
Labor costs not tracked by job. Supply usage not allocated to specific contracts. Travel time between sites ignored in profitability calculations. A contract that looks like $2,400 monthly revenue might cost $2,200 in labor, supplies, and allocated overhead. You would never know without proper job costing.
Cash Flow Surprises
Cash Flow Surprises
Commercial clients paying late without anyone following up. Receivables aging while you focus on cleaning instead of collecting. Supply purchases creating cash crunches that seem to come from nowhere. Payroll due Friday and not enough in the account because two clients are running three weeks behind.
What Changes
Every contract shows true profitability after labor, supplies, travel, and allocated overhead. You see which accounts earn their margin and which need rate increases or should not be renewed. When bidding new work, you pull actual cost data from similar contracts to price accurately. No more guessing at labor hours or underestimating supply usage. Your bids reflect what the work actually costs plus a margin that makes sense.
Receivables get managed with aging reports and systematic follow-up. Commercial clients who start paying late get contacted before one late invoice turns into three. Payroll runs without eating your weekends. Crew schedules change and the system handles it. Tax prep captures vehicle costs for all that driving between sites, equipment depreciation on buffers and extractors, and supply expenses that add up faster than most cleaning companies realize. You stop guessing at your numbers and start knowing them.
Data-Driven Decisions
Data-Driven Decisions
Profitability by contract showing which work pays and which drains resources. Historical cost data for accurate bidding on new opportunities. Supply tracking that allocates costs where they belong. Clear picture of which contract types and client types are worth pursuing and which to walk away from.
Steady Operations
Steady Operations
Receivables tracked and collected before they become problems. Payroll processed without scrambling. Monthly books closed on time showing actual performance not distorted by payment timing. Tax returns that capture every legitimate deduction so you keep more of what you earn.
Northwest Arkansas's Dedicated Bookkeeping Partner
The Next Step:
A Quick Conversation
Tell us about your business and where you need help. We'll listen, ask a few questions, and give you a clear plan and honest price.
