gideonfisk
New member
We’ve got three days behind us now. If you are new here, be sure to check out day 1 (learning and practicing), day 2 (business basics), and day 3 (professionalism) first.
Today is going to be focused on getting your window cleaning business started on the right path with regards to banking and accounting. If you are doing this for just a side income, don’t bother with this information. If you are trying to build a legitimate BUSINESS, though, then there are some things we need to get out of the way.
Cost of Today: FREE (hell yes; total of $144 so far in this program)
You started a business, right? Well, a business needs to keep separate records. Your income and expenses need to flow through dedicated business accounts to make the bookkeeping and tax return process easier. Mixing personal and business transactions is bad for many different reasons (IRS doesn’t like it, and it makes it harder to see how your business is truly doing).
We’ve got four things to do today!
This will make things easier down the road. You’ll need one eventually anyway. Free and easy to get.
Get an EIN for your window cleaning business here.
Just follow the instructions. At the end, you’ll get your EIN. Write it down and print out the confirmation (or save a picture of it at least).
That was the easy part. For future reference, most of your interaction with the IRS will not be that easy. Keep that in mind.
Using your EIN, we will get a business checking account. If you skipped the EIN step, you can still get a business checking account using your Social Security Number. I’d strongly recommend just getting your EIN first, though.
Once you open your business checking account, you’ll get a debit card in the mail that you can use for your business expenses from here on out. Remember to keep all receipts just in case. This is much better than using your personal checking accounts.
Research banks and find one that has no/low minimum deposit and no monthly fee for your business account. You might have to meet thresholds to have the monthly fee waived.
Make sure you go during the week (not on a weekend when they are closed) and leave yourself more time than you think. Banks take way longer than you’d think to open an account. Don’t ask me why.
Consider an online bank. You can simply mobile deposit checks you receive and you can use other bank’s ATMS free of charge. Depositing cash is typically where it gets interesting, though. Different banks offer different methods.
I chose Chase Bank, as they offered a $500 bonus if you deposit $2,500 and complete a few transactions. I understand that not everyone will be able to do that, though!
Using your EIN, you can (you don’t have to) apply for a business credit card.
Why? To start establishing your business credit score and to take advantage of bonuses/cash back rewards.
Plus, you might need it down the road to make big investments in your window cleaning business. Note that I'd never recommend using a credit card unless you are willing and able to pay it off IN FULL each month.
When deciding on a card, I try to always take advantage of cash back bonuses and promos.
For example, you might find a card that will give back $200 if you spend $500 or $1,000 in the first three months. That’s the perfect amount for a water fed pole system, which you’ll want eventually.
You can also get cash back for every purchase that you make. That’s compared to 0% cash back by using your debit card.
The Capital One Spark Classic for Business is an easy credit card to apply for and more than likely get accepted. You’ll get 1% cash back on all purchases and there is no annual fee.
If you choose to get a credit card for your window washing business, remember to set up credit card payments to come from your business checking account.
This is where tons of window cleaning companies make costly mistakes. If your books are messy or non-existant, you’re only hurting yourself down the road. Let’s have a strong start when it comes to accounting.
Keeping good books…
Wave Apps is pretty incredible for a free offering. It’s the one I use for all of my small businesses. It also offers invoicing, financials statements, and general bookkeeping. The invoicing is a great thing to add to your business, for whenever you get your first commercial customers. That’s about all you’ll need!
When you get everything set up, Wave will automatically pull in your checking accounts and credit card transactions. Then, you simply classify the transactions (revenue, equipment, office supplies, etc). Super easy!
Just don’t fall too far behind. I’d recommend setting an alarm/reminder at LEAST every week to remind you to update your books for that week’s purchases & sales.
Congrats – we are one day closer to making our first sale! Assuming you have some extra time, remember to keep on practicing. Professionally cleaning windows will only get easier with time.
--
Check out r/ExteriorCleaning if you are interested in building a company that cleans windows, roofs, gutters, etc. Let's learn and grow together.
Today is going to be focused on getting your window cleaning business started on the right path with regards to banking and accounting. If you are doing this for just a side income, don’t bother with this information. If you are trying to build a legitimate BUSINESS, though, then there are some things we need to get out of the way.
Cost of Today: FREE (hell yes; total of $144 so far in this program)
You started a business, right? Well, a business needs to keep separate records. Your income and expenses need to flow through dedicated business accounts to make the bookkeeping and tax return process easier. Mixing personal and business transactions is bad for many different reasons (IRS doesn’t like it, and it makes it harder to see how your business is truly doing).
We’ve got four things to do today!
Part 1) Get an Employer Identification Number for Your Window Cleaning Business
This will make things easier down the road. You’ll need one eventually anyway. Free and easy to get.
Get an EIN for your window cleaning business here.
Just follow the instructions. At the end, you’ll get your EIN. Write it down and print out the confirmation (or save a picture of it at least).
That was the easy part. For future reference, most of your interaction with the IRS will not be that easy. Keep that in mind.
Part 2) Open a Business Checking Account for Your Window Washing Company
Using your EIN, we will get a business checking account. If you skipped the EIN step, you can still get a business checking account using your Social Security Number. I’d strongly recommend just getting your EIN first, though.
Once you open your business checking account, you’ll get a debit card in the mail that you can use for your business expenses from here on out. Remember to keep all receipts just in case. This is much better than using your personal checking accounts.
Research banks and find one that has no/low minimum deposit and no monthly fee for your business account. You might have to meet thresholds to have the monthly fee waived.
Make sure you go during the week (not on a weekend when they are closed) and leave yourself more time than you think. Banks take way longer than you’d think to open an account. Don’t ask me why.
Consider an online bank. You can simply mobile deposit checks you receive and you can use other bank’s ATMS free of charge. Depositing cash is typically where it gets interesting, though. Different banks offer different methods.
I chose Chase Bank, as they offered a $500 bonus if you deposit $2,500 and complete a few transactions. I understand that not everyone will be able to do that, though!
Part 3) Apply for a Business Credit Card (OPTIONAL)
Using your EIN, you can (you don’t have to) apply for a business credit card.
Why? To start establishing your business credit score and to take advantage of bonuses/cash back rewards.
Plus, you might need it down the road to make big investments in your window cleaning business. Note that I'd never recommend using a credit card unless you are willing and able to pay it off IN FULL each month.
When deciding on a card, I try to always take advantage of cash back bonuses and promos.
For example, you might find a card that will give back $200 if you spend $500 or $1,000 in the first three months. That’s the perfect amount for a water fed pole system, which you’ll want eventually.
You can also get cash back for every purchase that you make. That’s compared to 0% cash back by using your debit card.
The Capital One Spark Classic for Business is an easy credit card to apply for and more than likely get accepted. You’ll get 1% cash back on all purchases and there is no annual fee.
If you choose to get a credit card for your window washing business, remember to set up credit card payments to come from your business checking account.
Part 4) Start Using a Free Accounting Software To Keep Track of Revenues/Expenses
This is where tons of window cleaning companies make costly mistakes. If your books are messy or non-existant, you’re only hurting yourself down the road. Let’s have a strong start when it comes to accounting.
Keeping good books…
- Makes tax time easier (saves you time and/or money that you’d pay a CPA or bookkeeper)
- Will save you if you ever get audited
- Will make your life easier if you want to sell your business down the road
- Makes you feel like you are truly running a legit business
- Teaches you about how to manage your business’s money
- Makes it clear whether your business is succeeding or slowly failing
Wave Apps is pretty incredible for a free offering. It’s the one I use for all of my small businesses. It also offers invoicing, financials statements, and general bookkeeping. The invoicing is a great thing to add to your business, for whenever you get your first commercial customers. That’s about all you’ll need!
When you get everything set up, Wave will automatically pull in your checking accounts and credit card transactions. Then, you simply classify the transactions (revenue, equipment, office supplies, etc). Super easy!
Just don’t fall too far behind. I’d recommend setting an alarm/reminder at LEAST every week to remind you to update your books for that week’s purchases & sales.
Congrats – we are one day closer to making our first sale! Assuming you have some extra time, remember to keep on practicing. Professionally cleaning windows will only get easier with time.
--
Check out r/ExteriorCleaning if you are interested in building a company that cleans windows, roofs, gutters, etc. Let's learn and grow together.