How much cash should a cleaning business keep?
A commercial cleaning company pays its crews every week or two. Its office and building clients often pay 30 to 45 days after the invoice. So the company carries more than a month of payroll for its customers before any of it comes back.
The starting numbers are an example. Replace them with yours.
How cash moves in a cleaning business
- Payroll is most of the cost, and it goes out on a fixed day whatever customers do.
- A new contract costs cash first. You hire and pay the crew a month or more before the first invoice is paid.
- One large client paying late can hit the account harder than a slow month.
- Residential work paid by card on the day needs much less cash than commercial work on terms.
Why the usual rule falls short
Two cleaning companies each spend $80,000 a month. One cleans homes and takes card payment on the day. The other cleans offices and waits 45 days. The second one needs far more cash, even if the profit looks the same.
How the calculator works
| Result | Formula |
|---|---|
| Minimum to keep | 2 × payroll per run + 1 month of fixed bills |
| Comfortable level | Monthly costs × (days to collect ÷ 30 + 1) |
| Weeks your cash covers | Cash ÷ weekly costs |
These rules come from a CFO's judgment, not from a survey. A reserve is a snapshot. A 13-week cash forecast shows the week your cash will run lowest.
Common questions
How much cash should a cleaning business keep in the bank?
At least two payroll runs plus one month of fixed bills. A comfortable level covers your costs for as long as customers take to pay, plus one more month. Enter your own numbers above for your answer.
Why not use three to six months of expenses?
Two cleaning companies each spend $80,000 a month. One cleans homes and takes card payment on the day. The other cleans offices and waits 45 days. The second one needs far more cash, even if the profit looks the same.
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One Page CFO reads your QuickBooks, builds your 13-week cash forecast and your one-page report, and a CFO checks both. $500 a month.
Also for cleaning company owners: the cleaning business monthly financial report.