Tracking Travel and Transport Costs in Janitorial Bookkeeping
Every janitorial contracting business, big or small, knows that the backbone of efficient operations lies in detailed bookkeeping. One of the most overlooked, yet crucial, expenses in this industry is related to travel and transport. Whether it's the commute to a client's facility or transporting cleaning supplies and equipment, these costs can significantly impact your bottom line. Here's how you can keep a keen eye on these expenses and ensure they don't go unnoticed in your books.
1. Understand the Importance of Travel & Transport Tracking
Why is it vital?
Accuracy in Profit & Loss: An accurate representation of your profits and losses requires you to account for all costs, including those related to travel.
Budgeting: Knowing your transport expenses can help you allocate resources effectively in the future.
Price Setting: For businesses that factor travel costs into client pricing, precise tracking ensures you're neither overcharging nor undercharging.
2. Categorize Travel & Transport Costs
Fuel and Maintenance: This includes fuel costs, regular vehicle maintenance, and any repairs.
Vehicle Depreciation: If you own company vehicles, consider their depreciation over time.
Public Transport: If employees use public transport for work-related activities.
Toll & Parking: Often overlooked, these can add up, especially for businesses serving urban areas.
3. Use Digital Tools for Efficient Tracking
While traditional paper logs serve their purpose, digital tools offer more efficiency.
Mobile Apps: There are apps designed specifically for tracking mileage and other transport-related expenses. These can automatically calculate costs based on current fuel prices and vehicle efficiency metrics.
GPS Tracking: For larger janitorial firms with multiple vehicles, GPS tracking can provide real-time data on distances traveled.
4. Implement Regular Reporting
Consistency is crucial.
Daily/Weekly Logs: Depending on your operational frequency, consider daily or weekly travel logs.
Monthly Reviews: Compile these logs for a comprehensive monthly review, making it easier to spot trends or anomalies.
5. Consider Client Locations
For janitorial businesses, client location plays a key role in travel expenses.
Zoning Clients: Group clients based on their locations. This can help in optimizing travel routes and potentially reducing costs.
Scheduled Services: Try to schedule services in a manner that minimizes unnecessary travel, especially during peak traffic hours which can inflate travel time and costs.
6. Training and Awareness
Inform your team about the importance of accurately logging travel-related expenses.
Training Sessions: Occasional workshops can instill the importance of meticulous record-keeping.
Clear Guidelines: Provide your team with clear guidelines on how to log different types of travel and transport costs.
7. Re-evaluate and Optimize
Don't just track; analyze.
Periodic Analysis: Every quarter, review your travel and transport expenses to identify any patterns.
Optimization: Based on your findings, optimize. Perhaps certain routes are costlier due to tolls, or maybe there's a cheaper supplier for your vehicle maintenance needs.
Wrapping Up
In the bustling realm of janitorial services, every penny counts. Efficiently tracking your travel and transport costs not only ensures accurate bookkeeping but also presents opportunities for cost-saving. It’s about looking beyond the cleaning supplies and workforce expenses, diving deeper into those often-overlooked travel expenditures.
If you find managing these intricate details overwhelming or feel the need for an expert touch to fine-tune your financials, Ledger Management is right here. From enhancing bookkeeping practices to boosting cash flow with CFO insights tailored for janitorial businesses, we're committed to propelling your growth. Dive deeper into how we can tailor solutions for your unique needs by reaching out to us here.