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Running a child care business presents unique challenges. Not only can day-to-day operations be challenging for staff, but the back-office aspects of running a day care facility can be difficult as well. From various enrollment periods to program options with different price plans, there are many variables to consider when it comes to finances. Here are some bookkeeping strategies to help keep your center running smoothly.

3 Helpful Bookkeeping Strategies for Day Cares

1. Keep Track of All Expenses

Tracking what you spend on utilities, insurance, equipment, and supplies is important for visibility into your operational costs. It’s also essential for maximizing your tax deduction. While an accountant will be better able to inform you about which expenses are eligible for deductions, most supplies, field trip costs, and repairs can be claimed, at least in part. One simple way to keep track is to set up a folder for expenses and highlight any amounts paid on bills or receipts. 

2. Record All Income

bookkeepingFor tax purposes, you’ll also need to record how much revenue your day care generates throughout the year or quarter. You can do this by keeping a spreadsheet of accounts receivable. Not only will tracking invoices allow you to follow up on any missed payments and prepare for taxes, but it can also be compared against business expenses to give you an idea of your net profits. 

3. Stay Organized

With the day-to-day activities that come with managing a day care efficiently, updating expense sheets and filing can become challenging. Having separate files for each student may help, but if you find yourself getting bogged down with all of the paperwork, enlist professional help. Hiring a bookkeeping professional will help you minimize the risk of errors and allow you to focus on managing your facility.

 

If you manage a small business such as a child care center, JJR & Associates LLC in Fayetteville, GA, is here to help with financial planning. From bookkeeping to payroll, their team specializes in keeping businesses running smoothly with comprehensive financial services. For your convenience, their certified public accountants will also manage your taxes. Browse through their full list of services online or call (404) 437-7748 to speak with an associate. 

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