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

Posts tagged ‘recordkeeping’

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.

Advertisements

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

Tag Cloud

%d bloggers like this: