A laundry business is easy to start with high demand market. No wonder many entrepreneurs run this business. This kind of service has become more competitive. To be able to compete, the business owner needs to differentiate his business from the competitors to be successful. Besides the prime location, equipment, promotion, and other things, one thing to keep in mind is related to the financial record.
Business owners may start their laundry business through a loan or investment from business partners. Investments from partners usually cost less than loan since the partners request the partnership or partial control of the business. Managing finance for laundry service from the loan will result in the higher start-up costs since the interest payment should be considered. Therefore this business still requires financial record to monitor the business cash flow and as the basis of taking a strategic decision. The financial record for laundry business is similar to other financial records for service business. However, some adjustment is needed according to the business type.
In general, laundry services engaged in washing, drying, and ironing services. The financial statement for laundry services, in the balance sheet, will mention the inventory post for laundry inventory (detergent, fragrance, plastic), fixed asset is the laundry equipment (the washing machine, the drying machine, etc). While in the profit lost will mention the laundry service revenue and cost of revenue in the usage of detergents, plastic packaging, electricity, laundry equipment depreciation, etc. One of the high-cost expenses in this business is electricity. Electricity cost is divided into 2 parts, by estimating the electricity cost of laundry base price and electricity for office activity. Electricity consumption is included in the cost revenue since laundry needs more electricity.
Managing finance for laundry service will no longer time-consuming and tiring since owners may implement accounting software, like Zahir Accounting. Zahir Accounting is the best software solution for any businesses. It is user-friendly, comprehensive, and complete software for laundry business. Implementing this software enables the owner to run complete automation for the business operational and smart reporting is produced to assist marketing and strategic decision.
