It’s getting close to that wonderful time of year again. The birds are chirping, the days are growing longer, and the snow is finally melting off of our yards. This means that the grass will soon start growing and landscaping companies can start to do what they do best – make their customers’ properties look amazing. 

For the majority of landscaping companies, it’s not the physical work that is the most daunting part of the job – it’s the behind-the-scenes business elements that often cause the most stress. Landscaping involves long days, and most business owners don’t want to spend their downtime crunching the numbers on their company’s finances. 

Teaming up with a bookkeeper for your landscaping business can give you back that free time and make sure that your books are always in tip-top shape. It allows you to focus on your customers and expand your business while ensuring the financial part of your company is in good hands. 

Set Your Landscaping Business Up for A Successful Season

As a landscaping company, you’re probably just finishing up your winter work and are in the midst of getting ready for the upcoming busy season. There is always a lot to do around this time to ensure you’re ready to hit the ground running once spring arrives, including:

• Inventory – do you have all the tools and equipment you need?

• Machine maintenance – is all of your equipment in good working order and ready to go?

• Client base – Have all of your customers been contacted regarding their desired services?

• Employees – Do you have enough staff to stay on top of the demands of your customers? Are all employees returning? Have new hires received the necessary training for the job?

Bookkeeping Tips for Landscaping Businesses

Once you’re sure that all the frontline things have been covered, it’s important to start setting your business up for success with regards to financials. These things may not be at the front of your mind when you’re trying to prepare for the busy season, but it’s vital to start off the landscaping season on the right foot. 

Separate All Business and Personal Expenses

Make sure you have a separate business account set up and a credit card for business expenses. You don’t want personal spending to mix with business spending, and keeping separate accounts will give you a better idea of your company’s spending and overall financial standing. 

It is also important to note that combining your personal and business expenses on a single credit card is something that can often trigger unwanted attention from CRA, something that no business owner ever wants or needs.

Track Everything 

Ensure all expenses and revenue are tracked carefully and organized regularly. Whether you’re dealing with cash or paperless transactions, it’s crucial to keep a log of all monies that go in and out of your business. 

Formulate Monthly Reports

Keep detailed and organized monthly reports of all expenses, accounts receivable, and cash flow. You can utilize this information to help guide your business decisions, and this is also a great way to see how your expenses line up with revenue and how your profit margins vary across projects.

Research Potential Tax Deductions 

Depending on where your business is located, you may be eligible for various tax deductions, credits, or benefits that can help lower your company’s income tax. This could include things like writing off all of or part of the cost of machinery, marketing materials, and other general business expenses. In Canada, there are various advantages in place that self-employed or small business owners can capitalize on when it comes to tax season. 

Know When It’s Time to Outsource

You may feel that you are barely making it through the challenges associated with running all facets of your business. This is extremely common. There are many moving parts associated with running a successful company, and this can be doubly overwhelming when your business is seasonal and you find yourself on the cusp of the busy season. 

As you read through all of the financial and accounting considerations to be made in order to keep your business running smoothly, you might be pulling your hair out and feeling like you’ve taken on a whole second full-time job. Well, that might be because effective and thorough bookkeeping for successful companies is its own job!

If you’ve been feeling this way, it might be time to outsource to an accountant for your landscaping business and focus your time and energy on what you do best.

How Hiring a Bookkeeper for Your Landscaping Business Can Help

Our team has a lot of experience when it comes to bookkeeping for landscaping businesses like yours. We can help your business with important things such as:

• Invoicing and payment processing
• Offering monthly financial statements
• Assisting you in setting up a budget
• Setup an efficient project costing system
• Helping you go paperless
• Improving your quote and estimate process
• Keeping books organized and up-to-date year-round
• Tax planning and relevant tax benefits

Learn more about how we can help manage your books while you look after your clients and continue to establish and grow your landscaping business.