Daycare.com Forum
Daycare and Taxes>Describe The Experience Of Using A Tax Preparer?
earlystart 09:23 AM 01-17-2013
Can anyone describe the experience of paying a tax preparer who is specialized in daycare for their taxes? 2012 was my first year in daycare, so I've never done daycare taxes before. I'm curious as to the process of using a tax preparer - will they give me a list of information they need from me? Will it require multiple face-to-face meetings, by email, by mail? Will I just give them copies of everything I've saved (food & supply receipts, tuition receipts, bank statements, etc), or will they expect me to add things up myself and just give them certain totals? I'm just curious about the whole process, so if anyone can enlighten me, that would be great! thanks!
butterfly 10:52 AM 01-17-2013
Here's how I do it. 
Before starting daycare I took a book keeping class for daycare. It covered the time/space, what things were deductible, etc. So I kept all receipts for purchases and entered everything into a Quicken program - similar to a spreadsheet, but I can print very specific categories so I can print the items that I need to give the tax preparer. I made sure to work with a tax preparer that was familar with daycare businesses. - Ask a fellow daycare provider in your area to see who they use. We met initially with the tax preparer to make sure that everyone involved was familar with my business and what items they needed to actually do my taxes. Now, after that first year, I only have to drop off my information at their office - don't even have an appointment or meet with them. I have most everything figured for them. (I print out all my categories from Quicken) I tell them my hours that I worked for the year and give them my tax papers (interest earned from bank, etc) All communication is through phone or email and then we go back in when they are finished to review and sign our return and pay. It's a very easy process for me.
Before starting daycare I took a book keeping class for daycare. It covered the time/space, what things were deductible, etc. So I kept all receipts for purchases and entered everything into a Quicken program - similar to a spreadsheet, but I can print very specific categories so I can print the items that I need to give the tax preparer. I made sure to work with a tax preparer that was familar with daycare businesses. - Ask a fellow daycare provider in your area to see who they use. We met initially with the tax preparer to make sure that everyone involved was familar with my business and what items they needed to actually do my taxes. Now, after that first year, I only have to drop off my information at their office - don't even have an appointment or meet with them. I have most everything figured for them. (I print out all my categories from Quicken) I tell them my hours that I worked for the year and give them my tax papers (interest earned from bank, etc) All communication is through phone or email and then we go back in when they are finished to review and sign our return and pay. It's a very easy process for me.
itlw8 11:27 AM 01-17-2013
Originally Posted by earlystart:
Can anyone describe the experience of paying a tax preparer who is specialized in daycare for their taxes? 2012 was my first year in daycare, so I've never done daycare taxes before. I'm curious as to the process of using a tax preparer - will they give me a list of information they need from me? Will it require multiple face-to-face meetings, by email, by mail? Will I just give them copies of everything I've saved (food & supply receipts, tuition receipts, bank statements, etc), or will they expect me to add things up myself and just give them certain totals? I'm just curious about the whole process, so if anyone can enlighten me, that would be great! thanks!
It would cost you a fortune to do it that way. Take Toms webinare and buy his book on recordkeeping. Then add up all your reciepts in the catagories in the book. Anything you do not know what to do list on a paper and take it along.Can anyone describe the experience of paying a tax preparer who is specialized in daycare for their taxes? 2012 was my first year in daycare, so I've never done daycare taxes before. I'm curious as to the process of using a tax preparer - will they give me a list of information they need from me? Will it require multiple face-to-face meetings, by email, by mail? Will I just give them copies of everything I've saved (food & supply receipts, tuition receipts, bank statements, etc), or will they expect me to add things up myself and just give them certain totals? I'm just curious about the whole process, so if anyone can enlighten me, that would be great! thanks!
I make sure I know enough so I can question them if needed. The 1st year I had an exclusive use space plus shared space I said ... I know I can do this here is the article. So she just had to figure out the way in her computer program ( she asked the boss ) and we were good to go. Last year I had a new person and her not only disagreed with me about adding the cost of the new furnace he made me think he did not really know about family childcare. So even though the owner checks the returns I called and complained. My appt this year is with the owner. Know enough to stand up for yourself but be willing to back down when shown your mistake. That is why you use the expert.
But really you need to do all your own prep work. I pay 125 for 30 minutes of their time . What would it cost if they had to spend 40 hours sorting a box of reciepts.
They do send me a packet each year that shows what I had in each catagory last year I like that.