Operating a daycare center in the Washington DC area requires a love of children (and a lot of patience!). But once you get your daycare off the ground, it can be one of the most fulfilling businesses to own. It’s not just a matter of nurturing the kids with arts & crafts, music time, lunch, imaginary play and making sure families are happy but also about running a solid, profitable business. keeping your accounting in order. By the time all the kids are picked up the last thing you want to think about is your company’s accounting!
If you’ve come to the realization that it’s time to hire an accountant to assist you with your bookkeeping and/or payroll, here are 7 questions to ask during the interview process.
7 Questions To Ask A Washington DC Daycare Accountant
1) What previous experience do you have with daycare business owners?
Having a practical experience in the same sector will help them understand your business strategy and operations faster.
2) How can you help me grow my business?
Accountants are financial and tax experts. Therefore, they know which opportunities best promote growth and what you need to steer clear from. Your accountant can track your financial progress and see what’s holding your business back (e.g., overspending on XYZ). They can also help you project your cash flow so you can better plan for future expenses and opportunities.
3) What business expenses can I deduct?
Things like toys, mats, electricity, cleaning supplies, food and beverages, stationery, safety equipment etc. are some of the many recurring expenses of a daycare business.
When considering tax deductions, you need to be careful. Each type of deduction has a specific set of rules you must follow. Your accountant can help you decide which ones to take advantage of and how to claim them.
4) How much should you charge per student?
Even though this decision is ultimately yours, it’s important to have this discussion with a daycare accountant so that you can afford your monthly expenses and earn a stable profit.
It is common for business owners to not know if they are charging the correct amount, per their business strategy, or if any changes are needed.
5) What are the fixed expenses?
Every state has their own tax rates, insurance rates and licensing requirements. These charges must be paid at fixed intervals of time. They should be noted and discussed with your accountant so that you can avoid any penalties for late payments/default.
Click here to understand the standards for licensed child day care centers in Washington DC
6) How much should you spend on marketing & branding?
Marketing your business leads to higher chances of success. Annual growth and free cash flow are important factors to decide your budget. Get detailed input from your accountant before making any major decisions.
7) How will they help you automate your billing/payments?
An accounting software and faster communication is essential to keep a track of your revenue, operating cost, and miscellaneous expenses etc.
Running a daycare business comes with many responsibilities, and accounting is one of them. While it’s easy to get intimidated by the numbers, the good news is there are experienced daycare accountants (like ClienTax!) to assist you.
We recommend interviewing several daycare accountants to find the best fit for your business.