Inspirational and Empowering Child Care Business Owners To Build Successful Child Care Businesses

Posts tagged ‘Business Finances’

Record Keeping and Tax Tips For New & Experienced Child Care Providers

Your goal should be to have receipts for every penny of your expenses.~Red Leaf National Institute

  As I write this blog post, we are less than 30 days away from a new year and this is a great time to tidy up your record keeping practices.  According to Redleaf Institute, it is important that you become familiar with all of the IRS requirements for filing your taxes. In fact, when you are familiar with the IRS requirements and you are more effective in your record keeping endeavors, you will reduce be able to claim the maximum legal deduction, your records will be more organized and you will reduce your taxes. I agree 100% with Redleaf Institute and I have also found that Record Keeping is a vital part of managing a successful childcare business including:

  • Keeping Track of and storing Receipts
  • Knowing when to deduct expenses
  • Keeping track of food expenses
  • Conducting Regular Monthly Reviews of your Bank Statements
  • Handling Employee Taxes
  • Keeping Track of Household Inventory
  • Time Space Percentage
  • Year-end Expenses
  • Home and Building Improvements
  • Utilizing a Financial software to keep track of expenses

To Read the entire article, 10 Record Keeping Tips For New Child Care Provider, click here. Shiketa Morgan Recommended Reading Record Keeping Tips For Child Care Providers

Category:

Administration, Employee Management, Food Program, Record Keeping

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Simple Strategies For Maintaining Receipts and Financial Records


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:

  1. 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.
  2. 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.
  3. 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.
  4. Keep Financial Records for at least 10 years in the event of an Audit.
  5. 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.
  6. 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

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Category:

Business Management, Finances, Record Keeping, Taxes

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