Episode 697 –Taking Your Accounting to the Next Level in Your Cleaning Company
Clements’ Cleaning – A Brief About Their Journey
Brandy and Tom Clements started their couple cleaning company venture back in March 2004 in Waterloo, Illinois. Tom owned a construction company earlier while his wife, Brandy, was in the corporate sector in America. As the kids started growing up, Brandy wished to take a job. But going back to the corporate world again was not something she wanted. Instead, she started working commercial cleaning contracts, and Clements Cleaning came into existence.
As the business started growing, the couple worked hard to get a hold of the nuances of the cleaning business. Once the kids didn’t rely on them as much anymore, they started tapping into residential cleaning. Today, Clements Cleaning thrives in both commercial and residential cleaning.
How the Grow My Cleaning Company Podcasts Helped Them Grow
What Went Wrong in Recent Years?
Both Brandy and Tom had stepped back from the business a bit, but they needed to keep records of the expenses, profits, margins, and account details in a more elaborate way. They decided to hire professional tax preparers and accountants to keep track of the numbers. But they still had a hard time figuring out the “50-30-20” scheme. They needed a proper adjustment of their profit and expense ratios.
Ways to Fix the Problem
At this point, Mike has two distinct solutions. Step one was to collect accurate data on the services they provide. When a company owns a large number of employees, and the transaction rate gets higher, it’s essential to get hold of the data. Many entrepreneurs turn to appoint Chief Financial Officers to keep track of the financial structures. But often, these finance professionals are only here to prepare taxes. Structuring the profit margins in a cleaning business takes a lot more than that.
Secondly, it’s essential to take charge of your own financial course. You need to decide how much money you are going to spend and your profit margin. The owners need to appoint the right accountant who won’t dictate the expense and earning.
For the “50-30-20” model, if the cost of goods sold and the overhead pricing goes higher, the profit will automatically drop. Hence, Mike suggested either raise prices or cut down the expenses.
Brandy and Tom’s Takeaways
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