Before you get started on your in home daycare, you need to make sure that you are following all the steps to make this successful. Running this daycare out of your home requires a lot of work, including taking care of the children as well as doing all the record keeping later at night. But it can still be a rewarding career that many people enjoy.
When you are working as a day care provider, make sure that you have the best support team following you the whole time. The professionals at S. Anderson’s are here to help you with all your day care provider needs. Whether you need someone to take care of your records all throughout the year or just need help filing your tax return during tax season, make sure to contact our professionals right away.
Deciding to Get Started
Getting started as a day care provider is a big decision. You need to be sure that you are going to be able to take care of a group of children day in and day out, at least for the immediate future. If you are someone who has a lot of other obligations or plans to be gone a lot, you will have trouble finding parents who will trust you with their children. You also have to be ready for long days that go well into the night when you take into account all your paperwork. Go through your schedule and your other commitments, as well as how committed you are to this new career, and really determine if it’s the right one for you.
Picking Your Entity
The entity that you choose for your business is going to make a huge difference on how you run the business. Many in home day care providers choose to be a sole proprietorship in order to save money and have the opportunity to be completely in control of their business. While this is a great idea, you will be the one in charge, or in trouble, if one of the parents decides to sue your business because of negligence or another wrongdoing. This is why many daycare providers choose another entity that allows them to have some separation of personal property from the business. Then they won’t lose out on everything when the worst happens.
Take the time to study up on the different entities that are available when you open your business and choose the one that is right for your business. The professionals at S. Anderson’s will be able to help you pick out the right entity that provides you as much freedom to run your business while still protecting your personal interests as possible.
Learning About Deductions
As an in home day care provider, there are a lot of deductions that are available for you to choose from. You can deduct the amount of space in your home that you use for the daycare. If you purchase equipment that is meant to help run your daycare, you will be able to deduct this as well. Any employees and their benefits are deductions as well as so much more. While you are going to need to keep really good records of all your expenses in order to claim them on your tax return, you can save quite a bit of money in the process. Make sure to contact the professionals at S. Anderson’s to get started and to ensure you are getting all the deductions that you deserve as an in home daycare provider.
Hiring Others to Help
In many cases, in home daycare providers choose to work on their own and they won’t hire someone else to help them out. Other times, you may want to have that extra support of someone around in case you need to go run errands or something happens to one of the children and you need to give your undivided attention. Hiring on other employees takes on a new world of its own and you will have to decide if you would like to provide them benefits and how much to pay them for working for you. But hiring others can make life easier and can actually save some money on your tax return.
Proper Record Keeping
You are not going to get very far in this business if you aren’t god at keeping track of your own records. You will need to keep track of everything. You will need to send out receipts for payments each month while keeping track of who has paid you, what items you purchased, and how much you are keeping back in savings just in case you one of your children stops coming for some reason or another. If you hired on employees, you need to keep track of this information as well. For those who are tired at the end of the day and can’t keep up with this recording stuff or those who just aren’t good with this process, make sure to contact the professionals at S. Anderson’s to get started.
When you are determining how to become a day care provider or you need help filing your tax return when you’re self-employed, make sure to contact Sharron Anderson with S. Anderson’s in Allan J Rolnick, CPA. We have the experience needed to help you determine which deductions to qualify for, what entity will work the best for you, and can work with you to come up with the best results this tax season.
Allan J Rolnick, CPA, CTC