For example, noticing a recurring high expense in a certain area might prompt the centre to seek more cost-effective alternatives. Moreover, clear categorization and tracking of expenses aid in accurate financial reporting and auditing. If your business is growing—or you’re planning on growing in the near future—hiring an accountant now can save you a lot of stress when it comes time to manage a higher number of transactions. They will be able to set up your accounting system, reconcile your accounts, estimate taxes for you, and otherwise offer consulting on how to master your business finances. With the help of your accounting software and/or an accountant, you can estimate how much you owe and pay on a quarterly basis instead of as one lump some at the end of the year.

Create Professional Looking Invoices in Seconds

Imagine the relief of knowing that every parent receives their child’s invoice at the same time each month, without fail. Parents can plan their finances accordingly, and you avoid the uncomfortable task of chasing late payments. Automate child care billing to record tuition charges, supply and activity fees, sibling discounts and co-payments and family discounts in seconds. You can also manage hourly billing, overtime and late pickup fees with ease. Quickly record late payment fees and print notices for all past due accounts. Split fees for divorced parents and separate family co-payments from government agency totals.

Sales Tax Summary

• Offering a variety of payment options is also a feature that parents will appreciate.
• The ability to generate detailed reports on revenue, expenses, attendance and any other pertinent financial data is key to making informed decisions.
• Get fast, secure access to reliable center, student, and parent information in seconds—empowering you to identify trends and drive business growth.
• A recent Census Bureau report found that the number of children living only with their mothers has doubled in the last 50 years.
• All of this talk about accounting and finances and we haven’t even touched upon your personal budget.
• But once you get your daycare off the ground, it can be one of the most fulfilling businesses to own.
• Bookkeeping, a practice dating back to the 15th century, is the systematic process of tracking and recording a business’s financial transactions.

Our goal is to provide financial leadership, guidance and advice that you can really use to help you grow your business and become more successful. A system that offers flexible billing options ensures you can cater to each family’s unique needs without complications. Since 2004, Jackrabbit has served thousands of owners, directors, administrators, and parents. Learn how to craft yours with these tips and operate at maximum efficiency. Talk with a friendly Procare expert to get a tailored child care solution for the unique needs of your business.

• They  allow for the inclusion of discounts, such as sibling rates or promotional offers, and additional charges like trips  or transportation fees.
• Maintain a record of your vendors, payment terms and standard expense categories like classroom supplies, maintenance, utilities and rent.
• Online accounting software allows you to manage all of your bookkeeping in one place—from creating invoices and sending reminders to clients to seeing your business financials at a glance.
• We handle the business administration so you can focus on what matters most – better outcomes for the children in your care.
• Get a full understanding of your company finances and make profitable business decisions based on revenue flow.
• Our goal is to provide financial leadership, guidance and advice that you can really use to help you grow your business and become more successful.
• Setting up healthy accounting habits when you’re starting a childcare business sets you up for success in the future.

How to Do Accounting for Your Daycare Business

Fast & Easy Online BookingChoose one of the options below and you’ll be directed to our online scheduler to select a day and time. Get fast, secure access to reliable center, student, and parent information in seconds—empowering you to identify trends and drive business growth. Trusting a software provider with your financial records and the personal information of all of the families in your care requires an assurance that they are capable of protecting it cash flow against a security breach. Incorporating these best practices into your daycare’s bookkeeping routine will help you navigate the challenges and maintain a solid financial foundation for your business.

• To calculate your gross margin, you need to know the total costs involved in providing your service—your cost of goods sold (COGS).
• Collecting tuition can be a pain point for child care providers, and the right accounting software for your center will lessen that strain.
• The best way to take the stress out of your accounting is to establish a bookkeeping system early on.
• Young parents heavily rely on their mobile devices to manage their finances, and they will see your child care’s use of accounting software as a valuable feature.
• ICare uses the ledger system for receivables accounting instead of the invoicing method.
• In contrast, double-entry bookkeeping is preferred for managing liabilities, assets, expenses, and revenue.

Why Child Care Centers Need Accounting and Bookkeeping Software

Moreover, it ensures compliance with legal requirements, shielding your business from potential legal complications. But finding one that specifically caters to childcare centers like yours makes a world of a difference. You can get started with a simple daycare invoice template or step it up with automated invoicing software. Creating invoices from scratch can be tedious, but invoicing software allows you to send invoices online, monitor payment status, send automated reminders, and much more.

Procare’s daycare bookkeeping software even allows you to make childcare accounting journal entries for expenses like bank fees or track credit card purchases. Once set up, you will use your business bank account to hold your business revenue, cover operating costs, and allocate tax money. Some business owners decide to use several bank accounts for each of these tasks, as this helps keep your funds organized. Some childcare providers start out getting paid “under the table,” but this method simply doesn’t cut it if you plan to run a professional daycare center.