How to categorize cleaning expenses?
Cleaning expenses are operating costs that cover janitorial services, cleaning supplies, and sanitation for business facilities. They’re fully deductible when used to maintain regular business operations.
What are cleaning expenses?
Cleaning expenses represent the costs your business incurs to keep its premises sanitary and presentable for employees, clients, and customers. This can include routine cleaning, deep sanitation, or professional janitorial contracts. These expenses are part of normal operations and are typically classified under Administrative or Facility Expenses.
How to categorize cleaning expenses
- Record as Operating Expenses in your income statement.
- Use a “Cleaning and Maintenance,” “Janitorial Services,” or “Facilities Expense” account in your chart of accounts.
- Include cleaning costs for offices, warehouses, or retail spaces.
- Separate cleaning supplies (like soap, mops, or disinfectants) from service-based cleaning (hired janitorial or maintenance staff).
- For businesses with multiple locations, allocate expenses by department or facility.
Examples of cleaning expenses
- Routine office cleaning and janitorial services.
- Deep cleaning, carpet cleaning, or window washing.
- Cleaning supplies and materials (soap, paper towels, sanitizers).
- Trash removal or recycling services.
- Disinfecting or sanitation for health compliance.
- Cleaning and maintenance for business vehicles.
- Specialized cleaning (e.g., restaurant kitchen or lab sanitation).
Tax implications for cleaning expenses
- Cleaning expenses are fully tax-deductible as ordinary and necessary business expenses.
- Costs related to cleaning business property, equipment, or vehicles qualify for deduction.
- Cleaning expenses for a home office are deductible only for the business-use portion of your home.
- Cleaning or maintenance that improves or restores property (e.g., renovations) may need to be capitalized instead of expensed.
- Keep invoices, service contracts, and receipts to document deductions.
- Deduct cleaning expenses on Schedule C (for sole proprietors) or under “Repairs and Maintenance” or “Facilities” on your business tax return.
