How to Grow Your Cleaning Agency – An Accounting Take
Tags – Growing Your Cleaning Business
In 2019, we wrote a blog about accounting avenues that can help property investors. You can check it here:
However, that was just the beginning of our focus on property development and investment. The next logical stage is then to talk about the services connected to owning property. For instance, in this blog, we will be talking about growing a cleaning agency.
Such growth will cover both accounting and strategic angles, relevant to most cleaning businesses.
At this point, it is important to keep in mind the age old saying: You get what you pay for. So, you may have to consider a small level of investment in your business to fully grow.
Let’s begin with your payment structures.
Away from Traditional Payment Structures
As you know, traditionally, cleaners were paid in cash.
However, when your aspirations are business growth, cash in hand is not the right mentality. Simply, cash in hand can work for a single cleaner, but imagine the hassle of covering the payments when you have a team of cleaners.
More importantly, the juicier jobs in cleaning, that will allow you to grow, come by partnering with professional businesses that can give you continued work. Such work also comes with better treatment and respect, as well as improved payment for the hard work you are putting in. So, you need an organised payment method that can be invoiced and tracked easily, as this is what professional businesses look for in their cleaning providers.
But, this structure comes with its own set of issues.
Current Issues with Payment Systems and Your Solution
How frustrating is it to invoice a property partner but not being paid in a timely manner?
Even further, you have to constantly remind the client to pay off your invoices.
Now imagine having multiple clients, which means multiple invoices, which means multiple cases of chasing. Not only will you be waiting to get paid, but you might potentially be leaking money, just by chasing the money that you deserve in the first place. Luckily, you have solutions here.
There are accounting software packages out there that are the bridge from the invoice to your bank. Such softwares allow you to send automatic reminders when payments have not been made and cross reference when payment has been received. You will not have to move a finger while the communication happens automatically.
On the other hand, in terms of dealing with clients that pay late, there is a simpler solution: work with businesses that will value your efforts higher.
Finding the Right Clients
Hard scrubbing for end of year tenants are difficult and not worth the money. More specifically, estate agents that deal with such jobs are not known to cleaners as gems either. Most estate agents are notorious for lousy action times. Hence, your payments might be stuck for a while.
Therefore, these jobs should not be your bread and butter
Luckily, at least since 2007, there is a more lucrative market: serviced accommodation through Airbnb. If you are not aware of what Airbnb is, here is a single sentence description. It is an alternative service to hotel stay, where travellers are able to get everything from a room to a whole apartment.
Airbnb is deemed an alternative to hotels because, unlike a hotel where you may just get a room, with Airbnb, you are able to use the services of an apartment, e.g. the kitchen, and make your stay more comfortable.
As you can imagine, with a high movement of travellers, properties on Airbnb really value cleanliness. In fact, in most cases, cleanliness is the factor number 1 for running a successful airbnb apartment.
Therefore, there is a massive demand for cleaners on Airbnb and, more importantly, the jobs are regular and consistent. In addition, such jobs are usually 2 hours for a 2 bedroom property and can pay up to £17.50 per hour at the medium range of service.
What’s more, because the cleaning for such apartments is regular, hard scrubs are not required. Instead, you need a keen eye, with an appetite for providing a timely service.
So, you get the idea.
You need to delve into work that is not only regular, but benefits extensively from your services. This is the only condition in which businesses will be open to compensating you duly for your time.
In terms of softwares to use to stay on top of your payment systems, please look into Xero (not a sponsor). XERO allows you to create invoices seamlessly, while connecting with your bank. This means that Xero will do the hard work of sending automatic payment reminders when not received, while also sending you notifications when the money has exchanged hands.
To learn more, get in touch with us today.
And, to learn about other areas connecting accounting and business, check: