Record Keeping!

[lunademiel]

How do you all organize all of your receipts?

Especially grocery receipts?

I am new to the business. I grocery shop on Sundays only for my family and the daycare. I shop at Superstore so a lot of misc supplies are also bought there. For example kids plates, crafts, toys, toilet paper, cleaning supplies, food etc. Does this all need to be separated? What categories should I keep them in? How do I separate the food from what is for the daycare, what's for my own kids, and what is for my family meals? Things like toilet paper, hand soap, paper towels etc? I'm feeling so overwhelmed LOL! Some of the food I make is for dinner one night and lunch the next. How the heck to separate that?

Some of the supplies I bought were at the end of last year for my business that is not technically open until this year. Can I still claim those expenses? How do I sell myself things like the playpen that is being used for the daycare now?

I bought a bookshelf for the daycare, I think I read somewhere that you can't claim furniture?

How many of you do your own taxes and how many have someone to do it for you?

Sorry for so many questions! I really just want to have a good understanding of my business!

Thank you!

[playfelt]

Go to the revenue canada site there is a booklet that you can download. It is only somewhat helpful though as it isn't very detailed.

Anything you buy specifically for the daycare like the bookshelf is claimable and you use the depreciation chart for most furniture or major purchases. However when you sell the bookcase or stop doing daycare you also need to claim the sale amount as income.

Groceries you separate from other supplies. Even though once figured out it all gets lumped together on the same line on the tax form. Toys, craft supplies etc for the daycare are 100% unless you have your own kids that will be using them while daycare is closed and then you do a percentage. For meals you add up the number of meals being served and divide out your grocery bill. That takes care of the supper tonight and lunch tomorrow thing. It isn't as daunting as it sounds. Just keep a record for a month and use that as your guideline unless things change drastically. Remember to count family meals on the weekends. Just popping in quickly so can't go into detail right now.

Things you bought before you opened you sell to your business - for supplies use the actual cost. For things like a playpen you already had in the house you sell it to yourself as if you had bought it at a garage sale. So if you put it out for a sale and someone came to buy it put a price on it and that is what you use to claim. Just write down the items and the date the use changed to business.

Some childcare associations arrange for tax workshops if you are lucky enough to hook up with one of those that would be very helpful.

[lunademiel]

Thank you Playfelt.

I have read the booklet, not enough detail for me! Plus I like to know what other providers are actually doing. I need experience!

How do I figure out the depreciation chart for furniture? When I stop doing daycare do I need to sell it to myself?

As for toys, well yes my kids will be using them after daycare hours... Again how do I figure out the percentage? Hours/Days of the month sort of thing?

Thanks for the tip on the associations. I'm going to have to check the MB childcare association. Unfortunately until I'm licensed I cannot become a member, and I am waiting on the government for that Hopefully soon though...

Thanks again for all your advice!

[KingstonMom]

I believe all furniture is 20% deductable. (But you can claim for 5 years I think??)
But things like an appliance is 100% deductible for the amount of time it is being used by the daycare.

I am not experienced, just some things I have read into recently as well.

[Cadillac]

I use quickbooks. after the cost is entered i put my receipts in an envelope under their appropriate heading such as food, daycare supplies, hydro, etc. soooooooooooo simple. you dont even have to add up all those stupid receipts at the end of the year.

[Cadillac]

I believe all furniture is 20% deductable. (But you can claim for 5 years I think??)
But things like an appliance is 100% deductible for the amount of time it is being used by the daycare.

I am not experienced, just some things I have read into recently as well.

I bought my couch 2 years ago and didn't claim it last year, can I claim 20% of it every year for the next 4 years?

[playfelt]

If the couch is in the playroom then it is claimable. Not if it is in the livingroom and not used by the daycare specifically.

The 20% refers to the depreciation chart. Major expenses are claimed at a percent I think it is which is 20%. But also remember that it is only based on 50% of the cost the first year so the trick although too late for this year is to buy anything you want for the next year in the fall of the previous year so that you are using the full price in the year you actually use the item. The chart for the claim is in your tax package.

[lunademiel]

How do you seperate what's your families groceries and your daycares?

I use quickbooks. after the cost is entered i put my receipts in an envelope under their appropriate heading such as food, daycare supplies, hydro, etc. soooooooooooo simple. you dont even have to add up all those stupid receipts at the end of the year.

[Play and Learn]

How do you seperate what's your families groceries and your daycares?

Just highlight what you use for the daycare. We also put this on a spread sheet (for each month).

[playfelt]

For groceries I do a total of the bills and then portion it out according to how many family meals I serve and how many daycare meals I serve.