Bookkeeping and tax services for contractors and trades in Long Beach and across Greater LA.

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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

How do I create a budget for my service business?

Start with your actual numbers from the past 12 months, then build forward. A service business budget needs to account for uneven revenue, labor as your biggest cost, and seasonal swings in work volume.

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How do I do job costing in QuickBooks?

Use the Projects feature in QuickBooks Online Plus or Advanced to create a project for each job, then code every expense, invoice, and time entry to the correct project. Run the Project Profitability report to see margins by job.

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Are business meals with clients tax deductible?

Yes, business meals with clients are 50% deductible as long as you or an employee are present, the meal has a clear business purpose, and you keep proper documentation.

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Can I file my business taxes myself or do I need a CPA?

You can legally file your own business taxes. But for most contractors and trades businesses, the complexity of deductions, depreciation, and self-employment tax makes a CPA worth the cost.

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What's the difference between an LLC and a sole proprietorship?

A sole proprietorship is the default when you work for yourself with no formal entity. An LLC adds liability protection and more flexibility, but in California it comes with an $800 annual franchise tax whether you make money or not.

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What is the IRS standard mileage rate this year?

The 2025 IRS standard mileage rate for business use is 70 cents per mile. You can use this rate instead of tracking actual vehicle expenses, and it covers gas, insurance, depreciation, and maintenance.

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Long Beach CPA firm specializing in contractors, trades, and service businesses. Bookkeeping, tax preparation, IRS representation, and advisory services for businesses across the South Bay and Greater LA. Owned and operated by a CPA with over a decade of hands-on experience.

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