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Old 11-28-2008, 04:29 PM
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sookiewon sookiewon is offline
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Default Bookkeeping Problems

What type of accounting form is best suited for a daycare that receives child care assistance from the gov't (cash basis accounting or accrual basis accounting)? I know that many small businesses (service-based businesses) use cash basis accounting (cash is accounted for as it is received). But with the parents receiving child care assistance, that is money automatically guaranteed to the daycare, how that can be accounted for if the daycare haven't actually received the money yet? I am trying to figure this one out. Maybe I am thinking about this one too hard. I wanted to know what type of bookkeeping software (i.e Quick Books, Peachtree, etc) is best suited for a daycare. I am planning to take over the bookkeepers' job for a daycare. I wanted to make sure that I am not going into this blind. This is my first time doing bookkeeping for a daycare. I want to provide the best service to the daycare and I want to make sure that I can handle the account for I accept it. Please help me out!!!!
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Old 04-19-2016, 06:17 AM
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When I accepted subsidy, I still used the cash method. I'm assuming your daycare is a center with employees? One thing to consider with the accrual method is that it doesn't offer an accurate picture of your bank account. The cash method is much more accurate when you have a lot of flow in/out and have to be 100% certain that the cash is there for paychecks/withholding and such. With accrual, you may show the subsidy on your income ledger, but if it's not really in the bank you may run into a cash shortage problem.

Good luck!
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Old 04-19-2016, 06:22 AM
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For me, the cash method is the only way I go. It is just the only thing that works for me.
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Old 04-19-2016, 06:26 AM
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Old 04-19-2016, 06:57 AM
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NoMoreJuice! NoMoreJuice! is offline
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Omg, thanks for that. I didn't even pay attention to the date. Someone had posted a reply, that's why it popped up...then the reply disappeared? I'm not crazy, I swear.
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Old 04-19-2016, 07:37 AM
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Quote:
Originally Posted by NoMoreJuice! View Post
Omg, thanks for that. I didn't even pay attention to the date. Someone had posted a reply, that's why it popped up...then the reply disappeared? I'm not crazy, I swear.


I deleted the first reply because it was spam.

Even another mod replied and didn't realize it was an old thread or that there was a spammer posting so NO, you aren't crazy...
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