Basic Accounting

To have a good record you should prepare a number of logs, these includes: time, food auto, asset. You should also track your income sources: private pay, government pay, grants and food program. You must also track financial statements, business analysis, cash flow, and tax return.

Financial records will prepare the financial statements. It is usually used in borrowing money from lending agency. Tracking this kind of record will help you out in knowing the standing of the financial status of your daycare. Tracking down business analysis will help you with your financial statements. This will identify in to what sector has the most profits and which one your business is losing money.

For cash flow, this will help you track to where you spend your money and to which you made your payment. It also helps you to identify on how much money you pay for certain bills, for example, how much do you pay for your electricity and some other expenses in your daycare. And for tax returns, having a detailed financial record will help you track all of your expenditures and this will also help you to file for rebates. Having all of these in records will make things easier for you.

Keeping record is very crucial and important in all of the aspect of your daycare. You must update all of the records in a daily basis. So that, you wont be missing a lot of information and will keep you in track of all of these records. Also, this will help you lessen the paper works that you need to do everyday. Updating records everyday is a good practice to check the status of the financial stability of your daycare.

Keep the receipts under proper headings, these tracks the expenses that you made or the payment that you made. This also compute how much did you spend for a month. A monthly report for the expenses is a good advice, so track all the receipts that you have. Have a separate record if you have different business aside from your daycare, this will help you track down financial status of each business and if you’re really earning in a certain business that you have.

Have a filing cabinet or safety deposit box for important documents. Make sure you organized each of the records, labeled them as much as possible. Just in case you need to review a certain report; you have this easy access to all of your records.

See: How To Start Your Own Daycare

Dolson McArt - Author of: Record Keeping Tips for Your Daycare
Contributing to EzineArticles.com since March 2007

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