What can I write off for my cleaning business?
Cleaning supplies are the most obvious deduction and often the most under-tracked. Every bottle of degreaser, pack of microfiber cloths, trash bags, gloves, mop heads, and bucket counts. These small purchases add up fast over a year, and many cleaning business owners forget to track them because individually they seem insignificant. Save every receipt or use a dedicated business card so the purchases show up automatically.
Vehicle expenses are usually one of your largest deductions. You can use the standard mileage rate or actual expenses like gas, oil changes, tires, insurance, and repairs. If you drive a van or truck primarily for the business, actual expenses often save more. Either way, you need a mileage log showing business versus personal use. Driving from job to job all day without tracking mileage means you’re leaving real money on the table at tax time.
Equipment like vacuums, carpet cleaners, pressure washers, floor buffers, and steam cleaners is deductible. Items under $2,500 can be expensed in full the year you buy them. Larger purchases can be deducted using Section 179 or depreciated over time depending on what makes sense for your tax situation that year.
Insurance premiums are fully deductible. This includes general liability, bonding, commercial auto, and workers’ comp if you have employees. If you pay for health insurance for yourself as a sole proprietor, that’s deductible on your personal return as well.
Labor costs including wages, payroll taxes, and any benefits you provide to employees are deductible. If you use subcontractors, those payments are deductible as long as you issue 1099s properly at year end. Missing 1099s can trigger issues with the IRS, so keep good records of who you pay and how much.
Marketing and advertising expenses count. This covers business cards, vehicle wraps or magnets, website costs, online ads, uniforms with your logo, door hangers, and flyers. If you’re paying for a listing on a platform like Thumbtack or Yelp, that’s deductible too.
Your phone bill is deductible for the business-use portion. Same with internet if you use it for scheduling, invoicing, or communicating with clients. Software subscriptions for scheduling, routing, or accounting are deductible. So are credit card processing fees if you accept card payments from clients.
Home office deduction applies if you have a dedicated space where you handle scheduling, billing, and administrative work. The simplified method gives you $5 per square foot up to 300 square feet. It’s straightforward and doesn’t require tracking actual home expenses.
Licensing fees, bonding costs, and any continuing education or certification courses related to your cleaning business are deductible. Professional association dues count as well.
The biggest problem isn’t knowing what’s deductible. It’s actually tracking everything throughout the year so your bookkeeper and tax preparer can capture it all. A shoebox of receipts in April means missed deductions and a higher tax bill than necessary. Working with a Long Beach bookkeeper who understands service businesses keeps your books organized so nothing falls through the cracks when it matters most.
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More Questions
Can I use QuickBooks to track subcontractor payments?
Yes. QuickBooks Online handles subcontractor tracking well if you set up each sub as a 1099-eligible vendor, code payments to the right jobs, and collect W-9s before you pay anyone.
Read answerWhat's the difference between an accountant and a bookkeeper?
A bookkeeper handles day-to-day financial recording like categorizing transactions and reconciling accounts. An accountant uses those records for tax prep, compliance, and strategic planning. Most trades businesses need both.
Read answerWhat records do I need to keep for my contracting business?
Keep income records, expense receipts, job-related documents, payroll files, subcontractor paperwork, and vehicle logs. Most records should be kept for at least three to seven years depending on the type.
Read answerWhat is a balance sheet and do I need one?
A balance sheet shows what your business owns, what it owes, and what's left over as equity. If you're a trades or construction business, you absolutely need one for taxes, bonding, loans, and understanding your financial position.
Read answerDo I need to pay estimated quarterly taxes?
If you're self-employed and expect to owe $1,000 or more in federal taxes, yes. Most contractors and trade business owners need to make quarterly payments because no employer is withholding taxes from their income.
Read answerCan I deduct gas and maintenance for my work vehicle?
Yes, but you need to choose between the actual expense method and the standard mileage rate. Contractors with trucks often save more using actual expenses, though both methods require tracking your business miles.
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