Daycare owners, fall is around the corner, and now is a good time to take a closer look at your bookkeeping and taxes.
Summer gets busy. Enrollment changes. Staff schedules move around. Expenses keep coming in. And financial tasks can easily get pushed to the side.
So before fall gets even busier, here are seven things I want you to check.
Number one, make sure all of your tuition payments have been recorded.
You probably have money coming in from weekly tuition, registration fees, late fees, and other parent payments.
Take a look at what you collected and make sure it matches what you have recorded. You want to know how much money actually came into the daycare, not how much you expected to collect.
Number two, check for unpaid parent balances.
Go through your accounts and see who still owes money. A few unpaid balances here and there can add up to a pretty big number.
Knowing what is still outstanding also gives you a better idea of how much money you actually have available for payroll, supplies, food, and other expenses.
Number three, find your back-to-school receipts.
You may already be buying classroom supplies, cleaning products, food, learning materials, equipment, or other items for the daycare.
Keep those receipts together and make sure the purchases are recorded.
Trying to remember everything you bought months from now is a lot harder than keeping up with it while you are spending the money.
Number four, separate business and personal spending.
Take a look at the accounts and cards you are using. Daycare expenses mixed in with groceries, personal bills, or other household purchases make bookkeeping much harder than it needs to be.
Keeping business spending separate makes it easier to see where your money is going and prepare for taxes later.
Number five, review your payroll and employee records.
Fall could bring staffing changes along with enrollment changes. Check your payroll records, employee information, new hires, wages, and payroll taxes.
You want those records in good shape before another busy season gets underway.
Number six, catch up on bookkeeping you put off during the summer.
Maybe you missed a few weeks or a couple of months. Either way, now is the time to get caught up. The longer you wait, the harder it becomes to remember what each transaction was for.
Getting current also gives you a better picture of how your daycare is doing financially heading into fall.
Number seven, deal with any tax issues left over from an extension.
An extension gives you more time to file your return, but there may still be work left to do. You could still need to finish bookkeeping, gather documents, track down receipts, or deal with questions about what you owe.
Getting started now gives you more time to handle everything before the deadline gets closer.
Maybe you listened to this list and realized you have two, three, or even five of these things sitting on your to-do list.
Schedule your free 30-minute Business Tax and Bookkeeping Review.
We’ll take a look at where things stand, figure out what needs your attention first, and help you get a better handle on your daycare’s finances before fall gets busier.
Request your review today and start getting these financial loose ends cleaned up before another month goes by.
