An essential factor of operating a business out of your home is the time-space percentage helping determine the business portion of expenses used for business and personal purposes. The time/space percentage is calculated annually by taking the total number of hours you care for children in your home, the total number of hours you spend on business-related activities when children are not present, and the total number of square feet used for your business. This time tracker sheet will help you track your hours, ensuring that all your time (both with and without children) is included in the time-space calculation.
To use this time tracker, simply print out a copy for each month. Every day write down when the first child arrives when the last child leaves, calculating the time when children are present. Then write down the amount of time you worked on the business when children were not present. We have left some of the columns empty for you to add your own tasks/activities; remember, they must be activities for the business and inside your home. After adding the hours for each day, you will get a final number at the end of the month.
Staying on top of keeping your business records in order can save hours in the long run, but can be challenging. Listen as some FCC providers share their tips and tricks for keeping their business records organized.
Looking for a way to keep your business records more organized? Kim Tipsword, owner of Kimmy’s House, shared this idea for a portable office. She uses these portable file boxes, one for DCFS files (physical forms, child records, space radon report, etc.), one for credentials for Grants, Excelerate, etc., and one for things she uses daily (calendar keeper, meal counts, and receipts).
She keeps her portable office on her stairs because she doesn’t use her second floor often. These could also fit under a coffee table or alongside a couch or on the counter.
It is tax season and this webinar presented by the Internal Revenue Service provides helpful information for child care providers about tax related issues including:
- Income items
- Recordkeeping tips
- Business use of the home calculation
- Expense Issues
- Depreciation rules and reporting
- Food Program Reimbursements (CACFP)
This webinar can be viewed using Flash Player or Windows Media and there is also a PDF of the powerpoint presentation available. For more information from the IRS for Family Child Care Providers see the Child Care Tax Center page on the IRS website.
Click here for the webinar.
