CHILD CARE RECORDKEEPING
 
Child Care Recordkeeping Issues and Answers
Child Care Recordkeeping
By Vanessa Rasmussen, © 2006-2010, All rights reserved.
Record
keeping forms an integral part of any childcare service. It is recommended
that every childcare provider has an efficient record keeping system in place
to ensure smooth operation of their business.
An effective record keeping system will:
- Track real income and business expenses
on a weekly basis
- Project budget and cash flow
- Document tax deductions and prepare records
for tax time
- Help you make effective decisions about
marketing, staffing and policies
- Demonstrate the net worth of your business
to a bank, lender or buyer
- Make a statement about your ability as manager
and business owner
Have a separate Business Checking Account
Always have a separate checking account for
all your business transactions, even if you provide private childcare service.
Do not mix your personal expenses with your daycare business expenses. Deposit
every dollar you receive into your account and pay all your expenses by check.
Maintain a Childcare Ledger System
Childcare Ledger systems are easily available
and are meant specifically for childcare providers. These ledger systems let
a provider keep a track of all their transactions.
File Keeping
Efficient file keeping is vital for the success
of any business, let alone childcare service. Try to keep your filing system
as simple as possible.
Here are some of the documents that every childcare
provider should maintain:
- Receipts and paid bills - by month, alphabetical
or category
- Receipts for assets valued at over $100,
with purchase date and value
- Bank statements
- Child care information - food program and
provider training records
- Contracts - business registration papers,
licenses, insurance policies, lease, professional service agreements
- Customers - information about each child,
customer contract, medical release forms, child immunization records, emergency
contacts
- Inquiries (waiting list)
- Payables - bills that you need to pay
- Payroll records, if applicable
- Receivables- documentation of invoices that
you have submitted and that should be received
- Staffing information
- Suppliers
- "To do" tasks
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