Record Keeping Knowledge for Family Child Care
Articles and other resources on the business of family child care – record keeping.
Here are a variety of articles and resources to help you establish good record keeping habits that will reduce your taxes. Start by reading An Introduction to Family Child Care Record Keeping. The areas that require the most record keeping and can result in your biggest tax deductions are the Time-Space Percentage, vehicle expenses, and food expenses. There are also articles on caring for children as someone who is exempt from state child care regulations, the rules to follow when hiring your family members, and what to do if you are audited.
Questions & Answers
An Introduction to Family Child Care Record Keeping
This article summarizes the key record-keeping tasks facing all family child care providers: tracking income, tracking expenses, how long to save your records, and more.
Business Side of Kith and Kin
This article discusses the tax responsibilities of those who are exempt from child care licensing rules. It also covers the issues of insurance for these caregivers.
Child and Adult Care Food Program
The Food Program is a federal program that promotes good nutrition for young children in family child care. This article describes the financial benefits of joining the Food Program.
Claiming Food Expenses
This article describes the two methods you can use to claim food expenses; probably your single biggest business deduction.
Help in Valuing Your Property
This article gives practical tips on how to determine the value of household items you purchased before you went into business that can be depreciated after your business begins.
Hiring Family Members
This article highlights the records that should be kept when hiring a family member for your business.
What You Should Know About IRS Audits
This short booklet should be read by any provider facing an IRS audit. It answers such questions as “How are providers chosen for an audit?, “What areas in family child care are most often audited?, and “How do I defend myself in an audit?”
Family Child Care Tax Workbook and Organizer by Tom Copeland
An annual publication for providers who prepare their own tax return. It describes how to fill out line-by-line the key tax forms: Schedule C, Form 8829, and Form 4562.
Family Child Care Tax Companion by Tom Copeland
An annual publication for providers who use tax professionals to file their tax return. It will help educate your tax professional and reduce errors on your return.
Minute Menu Kids Pro
This is an online record keeping that allows you to track child attendance, parent payments, business expenses, and much more. It can be used to electronically file all of your monthly Food Program forms with your sponsor. It contains over 50 reports that can be used to save time and money when filing your tax return. Free 30 day trial.
An annual record keeping calendar that makes it easy to track income and expenses.
Order the Calendar-Keeper
Vehicle Expenses and the Standard Mileage Rate
This articles describes the two ways to claim vehicle expenses and provides the standard mileage rate for the past several years.
Download Vehicle Expenses and the Standard Mileage Rate document
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.