Why daycares need different books
Monthly fees from parents, government funding with its own rules and reports, staff ratios that drive payroll, food for the kids and a home or building that's partly the business. Funding is what makes daycare books different.
What a bookkeeper for daycares keeps track of
- Parent fees and who's paid
- Government funding received
- Staff payroll
- Food and supplies
- The business share of your home, for home daycares
In the US
- Child care is generally not subject to sales tax.
- A home daycare can deduct part of the home based on the hours and space used.
- You give parents your tax ID so they can claim their child care credit.
In Canada
- Child care for children under 14 is exempt from GST/HST, so you don't charge it and can't claim it back on costs.
- Parents need receipts for their child care expense deduction.
- A home daycare can claim part of the home's costs.
What SumSwift does for daycare and child care owners
- Monthly parent fees invoiced and chased automatically
- Funding deposits sorted apart from fees
- Payroll worked out each payday, with the deposit file for your bank and the remittance to send
- Home office share worked out for a home daycare
- Receipts snapped with your phone or forwarded by email are read and matched to the charge
- Every statement checked against the balances your bank printed, to the cent, with personal spending kept off your profit