Hi there, it sounds like your business is off to a terrific start. =) Good for you ! I don't think it's necessary to hire an accountant for your taxes. I do my own and it's pretty straightforward. That said, being organized is important - and it'll make things so much easier for you. =) I pay my taxes in one lump sum every year and I find that it works pretty well for me. This past year I had to pay (approximately) $4500 - gulp ! What I found helpful was as soon as the new year rolled around (in January) I filled out my tax paperwork online (Netfile). Don't submit it though - you're just trying to get the dollar amount that you owe. Once I knew how much money the taxman wanted I still had the better part of four months to save up what I needed. (I had underestimated what I would owe by about $1500 so my "tax" savings account was a little skinnier than it needed to be. LOL) If you set about $500 a month aside for your taxes you should be fine. Do keep those receipts though - things add up in a hurry. I'm always amazed when I calculate what I've spent on expenses every year - last year my food bill was $8000 ! (It costs me about $5 a day to feed my monkey's which I gather is pretty typical) Still - you want to be able to claim that kind of expense for sure ! I assume that you're issuing receipts to the parents, so it should be pretty straightforward for you to track what you've earned in a year. In addition to toys, craft supplies, cleaning supplies, and food (all of which you can claim 100% of the costs) there's a bunch of other stuff that you can claim as well. i.e. professional memberships (do you belong to Child Care Provider's Resource Network or any other caregiver groups - if there's an annual fee you can claim it) job related training that you paid to participate in (i.e. St. John Ambulance training) You can also claim a percentage (I claim 10%) of your heating bills, your hydro bill, your internet (if you use the internet for advertising purposes) and your water bill. I also claim a portion of my home insurance (because I have additional insurance for my daycare) You can also claim office supplies that you are using for daycare purposes - I claim a couple of printer cartridges every year (printing out contracts) and my friend claimed her new printer (she uses it to print out flyers/newsletters for parents) Lastly, you can also claim any equipment that you need to buy for the daycare (playpens, high chairs, strollers, wagons) Hope this helps, and hope things keep going well for you. =)