Janitorial and Cleaning Companies: Bonding Isn't Optional When You Want the Big Contracts
You built a solid cleaning business. Your crews are reliable, your clients trust you, and you're ready to take on larger commercial contracts — government buildings, school districts, healthcare facilities.
Then the client asks if you're bonded.
Service contract bonds are used in many non-construction related industries including cleaning and janitorial services, security guard services, landscaping services, healthcare services, transportation services, and more. These bonds guarantee the performance of a contracted service.
For smaller residential accounts, a simple fidelity bond covering employee theft is usually enough. But when you start pursuing larger commercial or government contracts, the requirements change.
When Financials Come Into Play
For small projects under $400,000, most janitorial contractors can easily obtain a surety bond if they have good credit. For a larger project, expect to provide financial statements on both the janitorial company and the owners personally. The larger the project, the more financial strength the company will need to qualify.
For most cleaning companies, janitorial bonds can be purchased quickly with just a personal credit check on the owner. However, large bonds and those covering contracts longer than one year will need to submit additional information, including current and past financial statements on the company and personal financial statements on the owners.
What This Means for Growing Cleaning Companies
If you're targeting government janitorial contracts — city buildings, county facilities, school districts — you're entering a world where bonds are standard and financial documentation is expected. Getting your financials prepared by a CPA before you need them puts you ahead of competitors who scramble at the last minute.
At Prep Tax Smart in Redding, we help janitorial and cleaning companies prepare compiled financial statements that meet bonding requirements. It's faster and more affordable than most business owners expect — and it opens doors to contracts your competitors can't access.