I deal with things that happen during the day with the children as a part of my job. Stuff happens. If I have to put a child into a timeout that's my business and I'm teaching the children how to socialize in their peer group setting, how to share or take turns. I only tell the parents if we have a big issue and I've had to put a child into timeout several times during the day for one particular problem.
I don't have communication books or any paperwork. I give the parents a verbal update at the end of the day. But I do have a daily logbook for my own reference, making notes for myself about the food the children like or don't like, diaper changes/successful potty times with bowel movements and nap times. This information is all for me but anytime a parent asks me a question I have the answer to the most important info regarding their children.