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By Vanessa
Rasmussen, © 2004, All rights reserved.
Website: http://www.startingadaycarecenter.com
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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:
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- 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"
task
Copyright
2001, 2004. All rights reserved. Any reproduction
of this article in whole or in part without
written or verbal permission is strictly prohibited.
For information about reprinting this article,
contact the copyright owner: Vanessa Rasmussen,
Ph.D, Starting a Day Care Center, http://www.startingadaycarecenter.com.
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