Record Keeping and Taxes for Family Child Care

 

Do you enjoy doing record keeping for your business? Probably not. Yet, record keeping is an important part of your job as a family child care provider. Think of record keeping as your friend. The more time you spend with your friend (record keeping), the better you can manage your business. You will be able to track the income and expenses you’ve had over time, and you can document your business activities for many purposes, including:

  • any business deductions you claim against the federal and state income taxes you would otherwise owe;
  • your compliance with licensing requirements to provide day care in your home;
  • your compliance with licensing requirements to provide day care in your home;
  • your compliance with legal requirements regarding employment, workers’ compensation, etc.

There’s a lot to learn about record keeping and the more you know, the stronger your business will be. If you ever feel overwhelmed by all the rules and paperwork here are the most important three tips to remember:

  • Keep receipts for all expenses associated with maintaining, cleaning, and repairing your home;
  • Record all the meals and snacks you serve the children in your care on a daily basis;
  • Track all the hours you and other employees work in your home – don’t forget the hours you spend on business activities after the children in your care are gone.

We offer the following resources to help you master the basics of record keeping for the purpose of properly documenting business deductions for income tax purposes. You may be able to use the information you collect using these tools to substantiate your compliance with licensure and/or other legal requirements, but other record keeping may also be necessary for those purposes.

Learn about record keeping and taxes using these:

  • Tools – Practical tools you can use right now to improve your business
  • Knowledge – Articles and research related to this business topic
  • Connections – Links to related websites and organizations

Disclaimer: Materials and links provided by First Children’s Finance on this website do not constitute legal, accounting, tax or finance advice or professional services. Readers seeking professional advice about specific aspects of their business should consult a member of our staff or other qualified professional.