I do the same and so far has worked fine. The only differences is I that file my own income taxes and that I give receipts to parents for every payment and I keep a carbon copy of all payments and at year end I add all the income. I am currently using excel only for tracking attendance and for my assistant's payroll, but next year I am planning on stop using the carbon copies and add parents payments to my excel program (to be more efficient). I will still keep children information/forms in paper. My policies and related info are in my webpage and accessible to clients only.