Example of a Chart of Accounts for an Australian Commercial Cleaning Business

Chart of Accounts for an Australian Commercial Cleaning Business

A well-structured Chart of Accounts (COA) is vital for managing the financial operations of a commercial cleaning business in Australia. It categorizes all financial transactions, making it easier to track and analyze your business’s financial performance. Below is a tailored COA for an Australian commercial cleaning business, using correct terminology and including relevant GST considerations.

1. Assets

1.1 Current Assets

• 1000 Cash on Hand: Funds available for daily operations.

• 1010 Bank Accounts: Includes your business checking and savings accounts.

• 1020 Accounts Receivable: Amounts owed by clients for services rendered, including GST.

• 1030 Inventory: Cleaning supplies and consumables on hand.

• 1040 Prepaid Expenses: Payments made in advance for services or supplies, like insurance premiums.

1.2 Fixed Assets

• 1500 Cleaning Equipment: Vacuum cleaners, floor buffers, and other cleaning tools.

• 1510 Vehicles: Cars or vans used for transporting staff and equipment.

• 1520 Furniture and Fixtures: Office furniture, storage cabinets, etc.

• 1590 Accumulated Depreciation: Cumulative depreciation on fixed assets.

2. Liabilities

2.1 Current Liabilities

• 2000 Accounts Payable: Amounts owed to suppliers for cleaning products and services, including GST.

• 2010 Credit Card Payable: Balances on business credit cards.

• 2020 Payroll Liabilities: Wages and salaries payable to employees, including superannuation.

• 2030 Accrued Expenses: Expenses incurred but not yet paid, such as utilities or insurance.

2.2 Long-Term Liabilities

• 2500 Loans Payable: Outstanding business loans.

• 2510 Vehicle Loans: Loans specifically for purchasing vehicles.

3. Equity

• 3000 Owner’s Capital: Initial investment and additional funds provided by the owner.

• 3010 Retained Earnings: Cumulative profits or losses retained in the business.

4. Revenue

• 4000 Service Revenue: Income from cleaning services provided to clients, including GST.

• 4010 Contract Revenue: Income from long-term cleaning contracts.

• 4020 Additional Services Revenue: Income from extra services like carpet cleaning or window washing.

5. Expenses

5.1 Cost of Goods Sold (COGS)

• 5000 Cleaning Supplies: Cost of materials used for cleaning services, including GST.

• 5010 Equipment Maintenance: Expenses for maintaining and repairing cleaning equipment.

5.2 Operating Expenses

• 6000 Wages and Salaries: Payments to cleaning staff and administrative personnel, including superannuation and other employee benefits.

• 6010 Employee Benefits: Health insurance, retirement contributions, and other benefits.

• 6020 Rent and Utilities: Costs for office or storage space, electricity, water, etc.

• 6030 Insurance: Coverage for liability, equipment, and workers’ compensation.

• 6040 Office Supplies: Costs for items such as stationery and cleaning cloths.

• 6050 Vehicle Expenses: Fuel, maintenance, and insurance for company vehicles.

• 6060 Marketing and Advertising: Costs for promoting the business, including online ads and print materials.

• 6070 Training and Development: Expenses for staff training and professional development.

5.3 Other Expenses

• 6100 Bank Fees: Charges for banking services.

• 6110 Legal and Professional Fees: Costs for legal advice and professional services like accounting.

6. Other Income and Expenses

• 7000 Interest Income: Earnings from business bank accounts or investments.

• 7010 Interest Expense: Costs associated with interest on business loans.

Conclusion

A well-organized Chart of Accounts helps an Australian commercial cleaning business manage its finances effectively. By categorizing assets, liabilities, equity, revenue, and expenses, you can track financial performance, prepare accurate financial statements, and make informed business decisions. Adjust and customize your COA as needed to fit the specific needs of your cleaning business, ensuring compliance with Australian accounting standards and GST regulations.

4o mini