The Money Talk Every Cleaning Business Owner Needs to Hear: Episode 1156

Episode 1156

The Money Talk Every Cleaning Business Owner Needs to Hear: Episode 1156

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Episode 1156 – The Money Talk Every Cleaning Business Owner Needs to Hear

Accounting—Not Just for Nerds!

Mike Campion is pumped about today’s topic: accounting. But wait, before you roll your eyes and say, “My accountant handles that,” Mike’s got something to say. He hears it all the time—cleaning business owners who don’t know their revenue, cost of goods sold, or even their actual profit. And when someone gives him a percentage instead of a dollar amount, he knows they’re just guessing. It’s time to stop treating accounting like some mystical art and start taking control.

It's Simpler Than You Think

Mike’s message is clear: accounting isn’t rocket science. You only need to know how to add, subtract, and maybe multiply or divide. No fancy math is required—just basic arithmetic. The biggest mistake owners make is either ignoring their financials or focusing too much on revenue while neglecting profit. Mike sets the record straight: your goal should be a solid 30% profit. If you’re not making money, what’s the point?

Get the Right Tools

First things first: you need real accounting software, like QuickBooks. Don’t rely on scheduling software like Jobber or spreadsheets to manage your finances. Mike says it’s like using your phone as a hammer—sure, you can do it, but there’s a better tool for the job. If QuickBooks scares you, get help. There are people out there who can guide you through it for a reasonable cost. Don’t settle for guessing your finances and wondering why you’re always broke.

Cash vs. Accrual Accounting—Know the Difference

Mike shares a pro tip: ask your accountant if they use cash or accrual accounting. Cash accounting counts money when it hits your account, but accrual accounting matches income and expenses to the period they belong to, giving a clearer picture of your finances. If your accountant doesn’t know the difference, it’s time to find a new one. And remember, your accountant should be a teacher first. If they talk over your head or make you feel dumb, it’s time to move on.

Pricing Your Services Right

To price your services correctly, start with the cost of labor in your area. Mike’s rule of thumb is to pay your team a little better than average, with the chance to earn bonuses for great performance. Aim for a cost of goods sold (COGS) at about 45% of what you charge clients. If the math seems complicated, just double your labor cost to get a ballpark figure. Pricing isn’t just about covering costs—it’s about making sure you’re profitable, so you can keep growing your business.

Mike wraps up with a clear message: don’t wait to get your finances in order. Understanding your numbers is key to growing your cleaning business. Whether you seek help from experts or tackle it yourself, now is the time to act. Remember, it’s your money and your future. Take control, and watch your business thrive.

Episode 1156