Bookkeeping for contractors, trades, and small businesses in Utah.

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What expenses can a cleaning business deduct?

Cleaning businesses have plenty of deductible expenses, but the key is actually tracking them throughout the year. Most fall into a few main categories.

Supplies and materials make up a significant chunk of operating costs. Cleaning solutions, disinfectants, paper products, trash bags, microfiber cloths, mops, brooms, gloves, and spray bottles all count. Every trip to the supply store or online order for work materials is deductible. Keep receipts or use a dedicated card so nothing gets lost.

Equipment like vacuums, carpet cleaners, floor buffers, pressure washers, and steam cleaners can be expensed or depreciated depending on cost. Items under $2,500 can typically be written off in the year purchased. Larger equipment may qualify for Section 179 deduction, letting you deduct the full amount instead of spreading it over several years.

Vehicle expenses are often the biggest deduction for cleaning services. You’re driving to multiple job sites every day. Track your mileage and choose between the standard mileage rate or actual expenses like gas, insurance, maintenance, and depreciation. The standard rate is simpler but actual expenses sometimes save more, especially if you drive an older vehicle that’s fully depreciated.

Insurance premiums for general liability, bonding, and workers’ comp are fully deductible. Many cleaning businesses carry bonds to reassure clients about working in their homes or offices. That’s a business expense.

Labor costs including wages, payroll taxes, and subcontractor payments reduce your taxable income. If you 1099 subcontractors, make sure you’re issuing those forms correctly.

Marketing and advertising covers your website, business cards, flyers, online ads, and vehicle wraps. Uniforms with your company logo count as advertising too, not personal clothing.

Phone and software get overlooked but add up. The business portion of your cell phone, scheduling software, invoicing apps, and customer management tools are all deductible. Home office deduction applies if you have a dedicated space for admin work.

Professional services including bookkeeping and accounting fees are deductible operating expenses.

Commonly missed deductions include mileage between job sites (not just to the first client of the day), laundry costs for washing work uniforms and rags, small purchases from dollar stores for supplies, background check fees for employees, and key copies or lockboxes for client access.

The problem most cleaning business owners run into is not tracking these throughout the year. You remember the vacuum purchase but forget the $50 in spray bottles and $30 in trash bags from three separate store runs. By tax time, those small purchases are impossible to reconstruct.

Working with bookkeeping services in American Fork helps capture everything. Monthly expense reviews catch what you’d otherwise miss and often save more than the cost of the service itself.

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More Questions

What is the best way to manage finances for a construction company?

Job costing is the foundation. Know your costs by project, manage cash flow carefully, stay on top of receivables, and review your numbers weekly. Construction companies fail when they're profitable on paper but broke in real life.

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What financial reports do real estate investors need?

Real estate investors need property-level profit and loss statements, balance sheets, cash flow statements, and rent rolls. The specific reports depend on your investment strategy, whether you're holding rentals, flipping houses, or developing properties.

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What makes construction bookkeeping different from regular bookkeeping?

Job costing is the main difference. Construction bookkeeping tracks profitability by project, phase, and cost type rather than just overall business performance.

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How do I prepare for tax season as a small business?

The best preparation happens year-round with accurate monthly bookkeeping. Before filing, gather income documents and 1099s, organize expense records, verify categories, and meet with your tax preparer early.

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How do I price my jobs as an electrical contractor?

Job pricing requires knowing your fully burdened labor rate, material markup, overhead allocation, and profit margin. Most contractors underprice because they don't have accurate data on what jobs actually cost.

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What records should a small business keep?

Keep financial records like bank statements, receipts, and invoices. Tax documentation should be retained for seven years. Business formation documents, contracts, and insurance policies need permanent or long-term storage.

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Utah bookkeeping firm for contractors, trades, and small businesses. We provide bookkeeping, construction job costing, payroll, and QuickBooks support. Locally owned in American Fork, serving Provo to Salt Lake City and the entire Wasatch Front.

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