Bookkeeper duties for a daycare is not altogether different than those of a bookkeeper for any other service-based business, but the responsibilities are considerably larger. Since daycares are required to give total year receipts to the parents of the children for tax purposes, greater care must be taken to record transactions accurately.
Because of the unique nature of the daycare business, specifically with parents deducting the amount they pay for childcare from their taxes at the end of the year, the bookkeeper must get the amounts paid by each customer correct. If the daycare offers before and after school care, a record must be kept of all the amounts paid for just that service, and receipts are sent.
When completing the payroll paperwork, daycare bookkeepers use accounting software provided or the tax tables found on the IRS and state's websites. The bookkeeper will have to use the Electronic Federal Tax Payers Service and for each pay period complete a 941 payment (this is for the company's contributions to Social Security, Medicare and Federal Withholding along with the employee's contributions as well.) The bookkeeper uses the site, www.eftps.com and enters the company's EIN and PIN number.
On a quarterly basis a daycare bookkeeper will have to provide a Form 941 and mail it to the IRS. The Form 941 form will be a total of all 941 payments made each payroll period and must be signed and mailed in each quarter. The bookkeeper must also make the calculated payments from the accounting software and send in the Federal Unemployment Tax (FUTA) every quarter. In addition to these requirements, every quarter the bookkeeper must also complete the form for the state's unemployment tax. (SUTA).
A bookkeeper in a daycare must keep track of all accounts receivables to ensure that all customers are paying on time and all accounts payables to ensure that the building, utilities and other monthly bills get paid on time. Each month the bank and credit card accounts must be reconciled by comparing bank and credit card statements with the accounting software and making sure the bank/credit card statements agree with the accounting software.
Canceled checks, copies of invoices from vendors and receipts from expenses are filed on a weekly basis to make sure all hard copies are available for inspection and audits.
The bookkeeper will complete an analysis of revenue per child, keeping in mind the legal ratios of children to teachers. The ratios will vary in each state according to state law. The bookkeeper must use this information to construct a plan for hiring more teachers or running a cost analysis per classroom.
Additional duties include collecting all checks and cash payments, recording them as accounts receivables and filling out the deposit slips for the daycare owner, who will double-check all totals, to deliver to the bank. Receipts for payments made will be printed and given to each customer on a monthly basis.
Printing monthly financial reports, including the Profit and Loss Statement, Balance Sheet and a Cash Flow Forecast, maintaining the records for the petty cash fund and keeping receipts to reimburse the fund for all expenses paid are also generally part of the job.