The year was 1998 and I was only caring for one child. In fact, having one child enrolled, only brought in over $300 a month in income for my childcare business. That was not very much money to manage, however, it was a humble beginning and a start to managing income and expenses in my business. Moreover, as the business grew, I realized the importance of managing my income and expenses.
In the start-up days of my childcare business, I maintained my business expenses on a hand written ledger and I must say that I am so grateful for financial software today!
Over the years, I realized that if you did not keep a close eye on the financial status of your business and maintain your records, that you will not be prepared at tax time.
I am going to share with you six practical ways to maintain your receipts and financial records:
- Create folders for Business Income, Car expenses, food expenses, payroll taxes, credit card payments, utilities, classroom expenses, maintenance,etc. I think you get the picture. This system is great, in the event you need to review your expenses.
- Schedule a time once a week to enter your income and expenses into a computerized financial software program. When you enter receipts into the computer, the computer does the calculating and generates financial reports for you.
- Back-up financial records to a back-up hard drive. In the event of a computer, you will not be at risk of losing your financial records.
- Keep Financial Records for at least 10 years in the event of an Audit.
- Review your bank statements at least once a month, to assure that you have deducted every possible business expense. This is a great way to find more expenses.
- Keep Your Payroll and Tax Return Records in a Locked file cabinet. This protects your employees identity and assures that no one has access to your tax information.
I look forward to your feedback on the record keeping strategies in this post. Be sure to leave your comment below.
Shiketa
Do you feel that you need to go to another level in the area of Business Management? Check out the mastermind e-club
The Child Care Business Owner Institute 
Comments on: "Simple Strategies For Maintaining Receipts and Financial Records" (3)
Reblogged this on The Child Care Business Owner Coach.
LikeLike
Which financial software program would you recommend?
LikeLike
I recommend Quick books or Book Keeper. You can get them at Office depot.
LikeLike