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

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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.

Download An Introduction to Family Child Care Record Keeping document

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.

Download The Business Side of Kith and Kin document

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.

Download Child and Adult Care Food Program document

Claiming Food Expenses

This article describes the two methods you can use to claim food expenses; probably your single biggest business deduction.

Download Claiming Food Expenses document

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.

Download Help in Valuing Your Property document

Hiring Family Members

This article highlights the records that should be kept when hiring a family member for your business.

Download Hiring Family Members document

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?”

Download What You Should Know About IRS Audits document

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.

Order the Family Child Care Tax Workbook and Organizer

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.

Order the Family Child Care Tax Companion

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.

Link to the Minute Menu website

Redleaf Calendar-Keeper

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.