Managing the business side of things.
February 8, 2013
We are just back from meeting with our accountant. This may sound completely weird, but I LOVE our accountant. He is friendly, helpful, wise, and above all, I trust him and his advice completely! After working with him for over 3 years, I would like to pass some of his advice about running a business on to you. If you are the kind of person who has, in the past, put all your dayhome business receipts in a shoe box, and then spent HOURS figuring out your expenses and income and taxes come February, this is the year to change. Trust me, a few minutes a month will save you SO much time later down the road.
When running a dayhome, or any home based business, you first of all need to know what expenses you can claim, and how much of each you can claim, too! For a dayhome, those categories are (but are not limited to)
- Utilities – a % of your home in which your dayhome is run.
- Transportation – Mileage, Gas costs, car repairs (a % of your total costs)
- Equipment purchases – highchairs, cribs
- Cleaning supplies
- Art and Craft Supplies
- Advertising (remember, $5/month to be featured and advertised on social media with us!)
- Office Supplies – folders, papers, computer software, printer ink, etc.
- Field trip Costs
- Cost of any classes or certifications you take related to child care
- Home improvement and repair
- Housing costs – the % of your home in which your dayhome is run.
As is often the case, the Government of Canada has a great website that outlines, in even more detail, what you can and cannot claim. You can check that out at http://www.cra-arc.gc.ca/tx/bsnss/tpcs/dycr/menu-eng.html.
With all the expenses you can claim, you can actually run your business at a loss, which means you will end up paying no tax on it, so keep good records, and stay on top of the paperwork. And, if like us, you love your accountant; take him a coffee. He’s working some LONG hours right now Have a happy tax season!
**proviso – I am NOT an accountant, so if you have any questions, i can help you out, but an accountant is the official word**