Bookkeeping for Landscapers: Turning Grassroots Operations into Profitable Businesses

Running a landscaping company means juggling a lot at once—managing crews, scheduling jobs, keeping equipment running, and keeping customers happy. That is why outsourcing Bookkeeping for Landscapers is a game-changer to your performance. With so much happening out in the field, bookkeeping often falls to the bottom of the list. But poor financial management can eat away at profit margins and hold back growth.

At Westport Financial, we specialize in helping service businesses like landscaping companies move from reactive to proactive with their books and finances. Here’s how bookkeeping tailored to landscapers can keep your business growing strong.

Why Bookkeeping Matters for Landscaping Businesses

• Seasonality: Landscaping is highly seasonal. Proper bookkeeping allows you to plan for slower winter months and avoid cash flow crunches.

• Job Costing: Knowing the true cost of labor, materials, and equipment for each job lets you price accurately and protect margins.

• Payroll: With multiple crews, overtime, and part-time or seasonal help, payroll mistakes can add up fast without clean books.

• Equipment & Supplies: Tracking purchases and depreciation ensures you know the return on investment from mowers, trucks, and other big assets.

Without clean books, landscapers risk over-spending, under-pricing, and missing opportunities to reinvest in growth. Learn more in our previous article, “CFO Services for Landscaping Company.”

Bookkeeping Best Practices for Landscapers

1. Separate Business & Personal Accounts
   Keep all landscaping income and expenses flowing through dedicated business bank accounts and credit cards. This makes tracking simpler and prevents messy year-end reconciliations.

2. Track by Job and Service Line
   Whether mowing, hardscaping, or seasonal clean-ups, set up bookkeeping categories so you can measure profitability by service type.

3. Automate Invoicing & Payments
   Using accounting software with mobile invoicing keeps cash coming in faster and reduces time spent chasing payments.

4. Monitor Equipment Costs
   Record not just purchases but fuel, repairs, and maintenance. This highlights which equipment is profitable to keep and when to upgrade.

5. Plan for Taxes Year-Round
   Set aside funds each month for payroll taxes and estimated quarterly taxes. Landscapers often face big tax surprises if this step is skipped.

Learn more in our previous article, “Bookkeeping Outsourcing.”

The Westport Financial Advantage

We go beyond bookkeeping to give landscapers clarity and confidence in their numbers:

• Cash Flow Forecasting: Plan ahead for seasonal slowdowns and equipment investments.

• Budgeting & KPIs: Measure revenue per crew, cost per job, and profit margins with clarity.

• Advisory Services: We help owners set pricing strategies, evaluate growth opportunities, and secure financing when needed.

By combining bookkeeping with financial advisory, landscapers can transform from “keeping up” to “staying ahead.” Learn more in our previous article, “Bookkeeping for Service Companies.”

Case in Point

A landscaping company we worked with had revenue growth but never seemed to have cash left over. By cleaning up their books, tracking job costs, and building a seasonal budget, we uncovered over $75,000 in unnecessary expenses and improved net profit margins by 20% in the first year.

Accounting for Landscaping Companies

Landscaping is a boots-on-the-ground business, but the financial side still runs on a rhythm. Having a monthly accounting process keeps the books clean, cash flowing, and decisions data-driven. Here’s what a healthy cycle looks like:

1. Bookkeeping & Data Entry

• Record all income from jobs—mowing contracts, hardscaping projects, seasonal clean-ups.
• Categorize expenses into labor, equipment, vehicles, materials, and overhead.
• Enter receipts, fuel logs, and equipment invoices.

🔍 Insight: Tracking these items promptly avoids “missing expenses” that can distort profit margins later.

2. Accounts Receivable (A/R)

• Send invoices immediately after jobs are completed.
• Monitor aging reports weekly to spot overdue accounts.
• Follow up on late customers with reminders or service hold policies.

🔍 Insight: Landscapers with consistent A/R follow-up reduce Days Sales Outstanding (DSO) by 10+ days, freeing up thousands in working capital.

3. Accounts Payable (A/P)

• Enter all vendor invoices (materials, subcontractors, fuel, repairs).
• Set up scheduled payments to avoid late fees.
• Take advantage of vendor discounts for early payments when cash flow allows.

🔍 Insight: Organizing vendor spend highlights where you may be over-purchasing or paying premium rates that could be renegotiated.

4. Payroll

• Collect crew hours from time-tracking apps or job sheets.
• Process weekly or bi-weekly payroll including overtime, seasonal workers, and tax withholdings.
• Reconcile payroll reports against hours and job cost budgets.

🔍 Insight: Labor is the #1 cost driver in landscaping. Analyzing “revenue per labor hour” shows where teams are most efficient and where productivity can be improved.

5. Reconciliation & Closing

• Reconcile bank accounts, credit cards, and loan statements with the accounting system.
• Verify that all deposits, checks, and card transactions are accounted for.
• Adjust for prepaid expenses (like insurance) and depreciation on equipment.

🔍 Insight: A clean close ensures that margins aren’t inflated by missing expenses or misstated balances—essential for tax prep and lender reporting.

6. Monthly Reporting & Analysis

• Produce a Profit & Loss, Balance Sheet, and Cash Flow Statement.
• Compare actual results against budget and prior months.
• Analyze key metrics such as:
  • Revenue per crew
  • Gross margin by service line
  • Fuel and equipment spend as % of revenue
  • Net profit margin

🔍 Insight: Regular reporting highlights trends early—like fuel costs rising faster than revenue—so leadership can adjust pricing or scheduling before profits take a hit.

Frequently Asked Questions

How do you keep books for a landscaping company?
Bookkeeping for landscapers means tracking all income from services (mowing, hardscaping, clean-ups) against direct costs like labor, materials, fuel, and equipment. The best practice is to use accounting software that allows job costing, payroll integration, and mobile invoicing so you can stay on top of numbers in real time.

How do you categorize landscaping expenses?
Typical categories include:

• Labor (wages, payroll taxes, benefits)
• Materials & Supplies (plants, soil, mulch, pavers)
• Equipment (purchases, repairs, fuel, depreciation)
• Vehicles (payments, insurance, fuel, maintenance)
• Overhead (marketing, office, insurance, admin)

How much should expenses be for a landscape company?
Healthy landscaping companies generally run with 60–70% of revenue going toward expenses (direct costs plus overhead). That leaves room for a 10–20% net profit margin when pricing and cost controls are managed effectively.

How much profit should a landscape company make?
Most well-run landscaping businesses aim for 10–15% net profit margins, though top performers can push toward 20%. Anything consistently under 8% usually signals pricing, efficiency, or expense management issues.

What is the accounting software for landscapers?
Popular choices include QuickBooks Online, which integrates with job management apps like Jobber, Service Autopilot, or LMN. These systems streamline scheduling, invoicing, payroll, and financial reporting—giving landscapers a complete view of performance.

Ready to Grow?

At Westport Financial, we know landscaping businesses need more than just clean books—they need a financial partner who understands the challenges of seasonality, equipment costs, and job-by-job profitability.

If you’re ready to stop guessing and start making confident financial decisions, schedule a free strategy call with us today.