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Posts tagged ‘tax preparation’

Year End Tax Tips For Child Care Providers

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Can you believe that we are already in the last week of the month of November? This year has gone by so fast and I can hardly believe that the month of December is less than 7-days away.

At this time of the year, I can’t help but to think about how to get ready for a new business year. In fact, I just finished printing my profit and loss report for the month of November and I created my budget for the month of December. As I prepared my new budget, I thought about what I needed to do to get ready for my 2025 taxes.

Also, before we close the center for our Christmas break at the end of December, I will start preparing expense folders for 2026. Don’t get me wrong, I look forward to lots of holiday cheer, however, I find that this is a good time to get prepared for a new tax season.

Today I am going to share with you five things that I do at the end of each year to get ready and organized for the next tax season:

  1. Be sure that you have entered all your business expenses into a financial software. This will make it easier for you to print an annual profit and loss report.
  2. Enter all of your income into a financial software to be sure that all of your income is accounted for. I use Procare to track income that I receive from parents, and I use Bookkeeper to enter food program income and other streams of income for my center.
  3. I file receipts in folders that are marked with the name of each business expense and the current business year.
  4. Be sure to keep all payroll reports in a 3-ring binder to be sure that you have accurate payroll totals for the year. I use Paychex Payroll services, and I love that I receive payroll reports with each payroll service. Payroll can be close to 50% of your business expenses and you definitely want to account for all payroll expenses.
  5. If you are planning to have holiday parties or events, be sure to enter the expenses into your financial software program. Staff Christmas parties, gifts that you buy for your staff, students and parents are all tax deductible. Be sure to save those receipts.

This was just a small list of things that I do at the end of the year to get ready for the upcoming tax season and it has been helping me to get organized for the upcoming tax season.

Happy Holidays to you and Continued Success to you!

Dr. Shiketa Morgan

New Book Coming Soon!

Category:

Accounting, Business Management, Child Care Center, Family Child Care

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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!

Category:

Accounting, Taxes

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