Have you applied for the payroll protection plan or any SBA Funds for your Child Care Business during this pandemic?
Covid 19 hit the childcare industry and many other industries hard and having financial assistance from the SBA and other agencies is how many businesses are surviving right now. However, it is still vital that you maintain your record keeping in the event of an audit.
Today I want to share some strategies with you that will help you to maintain your current budget plus the additional funds that you receive from the Small business assosciation or Federal PPP funds.
- When you receive SBA funds, keep those funds seperate from other business funds. It may even be helpful to you to start another bank account.
- Keep track of how you spend the funds by using a log. (SBA Working Capital form
- Only use the funds on monthly operating expenses such as: rent, payroll, food, supplies, utilities, etc.
- Using SBA funds frees up your monthly workin capital and allows you to stay afloat during this pandemic.
- Finally be sure to keep all receipts.
With your Business Success in mind,
If you need coaching, I am just a phone call away! sign-up today.
To be sure that you are prepared for tax time or in the event of an audit, it is vital that you effectively manage and maintain your tax records. Every year at the end of the year, I take a look at how I have been keeping track of my business income and expenses for tax purposes.
In fact, I perform a personal audit by reviewing my bank statements, check books and reviewing the receipts that I have filed away in my records.
According to the Internal Revenue Service, after you file your tax return you will have many records that may help document items on tax return. Moreover, you will need these documents in the event your return is selected for examination. Here are Four easy ways to manage your record keeping:
1. Use manila folders or 3-ring binders to keep track of business expense and tax records for the current year. Be sure to create a folder for: income, business expenses, payroll, quarterly tax returns, Business loans,etc.
2. Store a way all old tax and personnel records and keep them for up to 10 years.
3. Store all personnel and records with sensitive information such as; social security numbers in a locked file cabinet.
4. Get a back-up system and invest in a computerized bookkeeping software to keep track of your income and Business expenses.
For more record keeping tips, click here.
For more business management tips, subscribe to the 7-Day Child Care Business Management eCourse, click here.