Tracking both spending and income is vital for any enterprise, especially for small businesses.
Tracking income requires logging payments per child/family as it helps ensure you are receiving funds, and has the added benefit of being a record of each payment. Accurate bookkeeping helps both you as well as the families complete their W-10 and taxes. Heather Mallett is a family childcare professional in Vincennes, Indiana. She is the Director and Owner of Happy Hearts Daycare and Preschool LLC, as such, Heather shares this Individual Annual Payment Record form to track payments and record totals for families. A few years ago, Heather came across this resource from a fellow childcare CEO based in another state and has used it ever since.
To use the form:
- Create one for each child/family at the start of the year
- Add the sheet to the child’s folder
- Enter in the payment every Friday, or whenever payment is due
- At the end of the month, tally the total
- At the end of the year, add the annual total and add your EIN
- Make a copy to share with families, and keep the original for your records
Heather also includes a note stating, if families request a second copy, it will cost $2.
This blog focuses on the business side of family child care, including record keeping, taxes, contracts, legal, insurance, money management and retirement planning. There are many resources, forms, links related to the business side of FCC and books and business systems that are available for purchase.
Need some guidance on the business aspects of your family child care? The National Association for Family Child Care website has a Business Center that offers information and links about a wide range of business needs including taxes, contracts, and marketing.
Get your tax payments organized at the federal and state level by creating an account with the U.S. Department of the Treasury and the state of Illinois.
The Electronic Federal Tax Payment System® tax payment service is provided free by the U.S. Department of the Treasury. After you’ve enrolled and received your credentials, you can pay any tax due to the Internal Revenue Service (IRS) using this system. You can also set up an account for the state of Illinois at My Tax IL.
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.
The National Association for Family Child Care hosted a webinar presented by Tom Copeland that gives information about how family child care providers can prepare for changes due to new tax laws for 2018. This webinar has been archived and providers who missed the live webinar can purchase access to the recording (as well as other archived webinars hosted by NAFCC) here.