Accounting for Cleaning Services Businesses in Singapore 2025

Introduction

The cleaning services industry in Singapore is a growing sector, driven by rising hygiene awareness, corporate cleaning demands, and government regulations. Whether you run a commercial cleaning company, residential cleaning service, or specialized sanitization business, proper accounting is crucial for managing costs, ensuring profitability, and complying with Singapore’s tax and financial regulations.

In this article, we explore the key accounting considerations for cleaning services businesses in Singapore in 2025, including bookkeeping, tax compliance, payroll management, and financial best practices.

---

1. Understanding Revenue and Cost Structures in Cleaning Businesses

Cleaning services companies operate with a unique revenue and cost structure. Whether you offer contract-based cleaning for offices, one-time deep cleaning, or industrial sanitation services, tracking revenue and expenses is essential for profitability.

Revenue Sources

• Residential Cleaning Services – Regular housekeeping, deep cleaning, and move-in/move-out cleaning.
• Commercial Cleaning Contracts – Office cleaning, retail cleaning, and co-working space maintenance.
• Industrial and Factory Cleaning – Specialized sanitation for warehouses, factories, and construction sites.
• Post-Renovation Cleaning – High-demand services for homeowners and contractors.
• Disinfection and Sanitization – COVID-19 and general hygiene-related disinfection services.

Key Cost Components

• Labour Costs – Wages for cleaners, supervisors, and administrative staff.
• Cleaning Equipment and Supplies – Purchase of vacuum cleaners, mops, disinfectants, and PPE.
• Transportation Costs – Fuel and maintenance for company vehicles used to transport workers and equipment.
• Marketing and Advertising – Digital marketing, flyers, and customer outreach.
• Business Licenses and Insurance – Cleaning service licenses and employee liability insurance.

By tracking these costs effectively, cleaning business owners can improve financial management and maintain sustainable operations.

---

2. Importance of Proper Bookkeeping for Cleaning Services

Accurate bookkeeping is necessary for monitoring revenue, tracking expenses, and maintaining compliance with Singapore’s financial laws. Here are some best practices:

Daily and Weekly Record-Keeping

• Record daily invoices issued to clients for completed cleaning jobs.
• Track all payments received via cash, bank transfers, or online platforms.
• Maintain an expense log for cleaning supplies, fuel, and other operational costs.

Managing Accounts Payable and Accounts Receivable

• Send invoices promptly and follow up on unpaid bills to prevent cash flow issues.
• Monitor supplier payments for cleaning products to avoid late fees.
• Implement a structured system for recurring corporate contracts.

Using Accounting Software

Many cleaning businesses use cloud-based accounting software like Xero, QuickBooks, or MYOB to automate bookkeeping and generate financial reports.

---

3. GST and Tax Compliance for Cleaning Businesses in Singapore

Understanding GST Registration

• Cleaning businesses with annual revenue exceeding SGD 1 million must register for Goods and Services Tax (GST) with IRAS.
• GST-registered businesses must charge 9% GST (effective from 2024) on their cleaning services.
• Businesses must file GST returns quarterly and maintain proper tax records.

Corporate Tax Considerations

• Singapore’s corporate tax rate is 17% on chargeable income.
• Newly registered cleaning businesses may qualify for tax exemptions under the Start-Up Tax Exemption (SUTE) Scheme.
• Common tax deductions include wages, rental, cleaning equipment depreciation, and business insurance.

Ensuring tax compliance helps cleaning businesses avoid penalties and improve financial planning.

---

4. Managing Payroll and Employee-Related Expenses

Cleaning services businesses rely heavily on manpower, making payroll management a critical component of financial planning.

CPF Contributions and Work Passes

• Employers must contribute to the Central Provident Fund (CPF) for Singaporean and PR employees.
• Foreign workers require valid S Pass or Work Permits, and businesses must pay a foreign worker levy.

Overtime and Shift Allowances

• Employees working beyond 44 hours per week are entitled to overtime pay under the Employment Act.
• Additional allowances may apply for weekend or late-night cleaning jobs.

Payroll Software for Automation

Using payroll software like Talenox, Payboy, or HReasily ensures compliance with CPF contributions, tax filings, and timely salary payments.

---

5. Managing Equipment and Inventory Costs

Cleaning services require specialized tools and consumables. Proper inventory management helps minimize wastage and control costs.

Tracking Cleaning Equipment

• Maintain an asset register for vacuum cleaners, steamers, and industrial cleaning machines.
• Schedule regular maintenance to extend equipment lifespan and reduce replacement costs.

Managing Cleaning Supplies

• Use an inventory tracking system to monitor detergent, mops, gloves, and disposable wipes.
• Buy supplies in bulk to benefit from wholesale pricing.
• Reduce wastage by training employees on efficient product usage.

Proper inventory management ensures cost efficiency and helps businesses maintain profit margins.

---

6. Financial Planning and Budgeting for Cleaning Businesses

To ensure financial stability, cleaning service providers must engage in strategic financial planning.

Cash Flow Forecasting

• Plan for monthly expenses and maintain an emergency cash reserve.
• Monitor seasonal demand fluctuations (e.g., increased demand for deep cleaning before festive periods).

Break-Even Analysis

• Calculate the break-even point to determine the minimum number of jobs needed to cover costs.
• Monitor gross profit margins to assess service pricing strategies.

Financial Reporting for Decision-Making

• Monthly profit and loss (P&L) statements help track revenue and expenses.
• Regular financial audits ensure compliance and provide insights into profitability.

---

7. Common Accounting Mistakes to Avoid in Cleaning Businesses

1. Mixing Personal and Business Finances

• Always separate personal and business expenses by maintaining different bank accounts.

2. Poor Record-Keeping

• Failing to track revenue and expenses accurately can lead to financial mismanagement.

3. Underpricing Services

• Some cleaning companies set low service rates without considering costs, leading to unsustainable operations.

4. Delayed GST and Tax Filings

• Late tax filings result in fines and penalties. Work with a professional accountant to stay compliant.

---

8. Leveraging Professional Accounting Services

Hiring an accounting firm can help cleaning businesses in the following ways:

• Bookkeeping and Payroll Management – Ensuring accurate financial records and timely salary disbursements.
• Tax Planning and GST Compliance – Helping businesses optimize tax deductions and file GST correctly.
• Financial Advisory – Providing strategic advice on cost control, profitability, and business growth.

Partnering with a professional accounting firm ensures that cleaning service businesses maintain financial health and focus on operational excellence.

---

Conclusion

Accounting for cleaning services businesses in Singapore in 2025 requires careful financial management, proper tax compliance, and strategic cost control. Whether managing manpower, purchasing cleaning equipment, or handling GST filings, business owners must adopt best accounting practices to stay competitive.

By leveraging cloud accounting software, financial reporting tools, and expert accounting services, cleaning business owners can streamline operations, boost profitability, and ensure long-term success.