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Tax Filing Habits For Child Care Business Owners

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As I write this post we are only 30 days from the April 15th tax deadline. However, before you file your taxes, I want share with you five ways to get organized and share a lost of items that you may deduct as a business owner.

A childcare business comes alonvg with lots of expenses or as some would say, a very large over head.

In fact, as a childcare business owner myself, I’ve learned that almost everything seems to be a tax expense and it is truly necessary to keep a letter size envelope with you just to keep up with receipts.

I’m not a CPA, but I have done my own business taxes for over 25 years using Turbo tax to file my taxes every year without any audits.

Today I simply want to share some tax filing tips with you that I’ve used for many years and I believe that the tips that I’m going to share with you today will help you to get prepared for your upcoming tax filing.

5 habits that lead to a more organized tax preparation:

  1. Create an expense folder for operating expenses.
  2. Use a book keeping program and enter business expenses into the accounting program as you get receipts.
  3. Enter your income into your accounting program weekly or monthly.
  4. Use a payroll company to process payroll and file all payroll reports on a virtual folder. If you are old school like me, file reports on a 3 ring binder.
  5. File business expense receipts daily.

Expenses to claim on your taxes

  1. Rent or Lease payments
  2. Mortgage interest for home daycare providers
  3. Supplies
  4. Utililities
  5. Gas
  6. Insurance (Health/ liability/homeowners)
  7. Payroll
  8. Tax deposits
  9. Events
  10. Professional Development
  11. Medical cost ( health, dental, chiropractor, vision etc)
  12. Communication ( cell phone, internet, etc)
  13. Marketing ( website, ads, flyers)
  14. Vehicle Expenses
  15. Donations
  16. Travel Expenses
  17. Building or home repairs
  18. Food for the children
  19. Equipment purchases
  20. Alarm services
  21. Inspections/License/ Legal fees

That was a short list of expenses that you can claim, however. I hope that you are prepared to claim all your business expenses.

Keep this in mind, the more expenses that you claim, the less taxes you will owe.

Moreover, the amount of taxes that you pay is also determined by other factors that I have not mentioned in this post. I do suggest that you consult a CPA if you have tax questions or if you need assistance, I’m available for coaching.

Happy Tax filing 😊

Dr.Shiketa Morgan

Get my newbook, Child Care Business Success Habits!

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Accounting, Taxes

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Tips For Organizing Your Record Keeping

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.

Shiketa

For more business management tips, subscribe to the 7-Day Child Care Business Management eCourse, click here.

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Accounting, Budget, Record Keeping, Taxes

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