I recently had an amazing conversation with a childcare provider in our community that inspired this post. The provider shared how she had been receiving expensive quotes from accountants or bookkeepers in her search that felt completely out of alignment with the services she actually needed. It got me thinking about how overwhelming it can be for us, as childcare owners, to find the right financial help at a price that makes sense. So, if you’ve been in the same boat, hang tight because I’m about to walk you through the process of finding an affordable accountant or bookkeeper for your childcare business.
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Why Do I Need a CPA, Accountant, or Bookkeeper?
You might be wondering, “Do I really need an accountant or bookkeeper? Can’t I just handle everything myself?” Well, let me tell you, while we all have our strengths (and I know many of us have gotten pretty good at juggling multiple hats), handling the financial side of a childcare business without professional help can be risky.
“It’s about saving you time & avoiding mistakes”
Hiring an accountant or bookkeeper isn’t just about tracking your income and expenses. It’s about saving you time and avoiding mistakes that could end up costing you way more than a professional would. Plus, as childcare owners, we deal with specific financial issues—like payroll for our staff, food program reimbursements, and tuition payments—that require expert handling. Messing up here can lead to unhappy parents, fines, or even tax trouble. Yikes!
But when should you start thinking about hiring someone? Here are some signs that it might be time to call in the pros:
You’re spending more time crunching numbers than caring for children. (And let’s be real—that’s why we’re here!)
- You find yourself up late at night wrestling with your books.
- You’re unsure about tax deductions or childcare-specific financial rules.
- Your revenue is growing, and things are starting to get complicated.
The Search Process: How to Find the Right Fit
So, where do you start when looking for someone to handle your childcare business finances? There are a few ways to go about it, but here are the steps I recommend:
1. Ask for Recommendations
The best way to start is by asking around. Talk to other childcare providers or small business owners in your area and see who they use. You’d be surprised how willing people are to share their experiences—good and bad! A strong recommendation from someone you trust can save you hours of research.
2. Do Your Research
Once you have a few names, do a little digging. Check their credentials, look for reviews, and visit their websites. You want to make sure they have experience working with small businesses, especially childcare businesses. This way, they’ll understand your specific needs (like how to handle child-related deductions or food program reimbursements).
💡Pro Tip: Don’t forget to reach out to your local Child Care Resource (CCR) organization. They often have great referrals for accountants, bookkeepers, or CPAs who understand the childcare industry!
3. Set Up Interviews
This may sound a little formal, but hey, you’re hiring someone to manage your money—it’s worth taking seriously! Set up interviews or consultations with potential accountants or bookkeepers. Most offer free consultations, so take advantage of this to ask them key questions about their experience, fees, and services.
What Should I Ask?
When you sit down to interview a potential accountant or bookkeeper, don’t be shy. This is your chance to make sure they’re the right fit for your business. Here are a few important questions to ask:
- What software do you use?
Some accountants and bookkeepers use specific software (like QuickBooks or Xero). You want to make sure you’re comfortable with whatever system they’re using. - Do you have experience working with childcare businesses?
This is critical. The rules and deductions that apply to childcare businesses can be tricky, so you want someone who understands your industry. - What specific services do you offer?
Are they just doing bookkeeping, or will they also handle taxes, payroll, and financial planning? You need to know exactly what you’re getting. - What’s your fee structure?
Do they charge hourly, monthly, or by the task? You’ll want to make sure their pricing structure makes sense for your business size and your budget. - How do you communicate?
Will you get regular updates? Do they offer meetings to review your financials, or is it more of a set-it-and-forget-it situation? Clear communication is key to a successful partnership.
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How much will an accountant cost?
How Much Should I Expect to Pay?
Now comes the part that can get a little tricky: How much should you expect to pay for these services? Unfortunately, there’s no one-size-fits-all answer, but I can give you a general idea.
For bookkeeping services, expect to pay anywhere from $300 to $800 per month, depending on the size of your childcare business and the complexity of your finances. For accounting services, especially for tax preparation, the cost can vary between $1,000 and $3,000 annually.
💡Pro Tip: To save some cash, consider a DIY approach! You can use a program like QuickBooks to manage your day-to-day finances, then have a bookkeeper review everything for accuracy. It’s a great way to get professional oversight without paying for full-service bookkeeping.
That being said, if someone is quoting you significantly more than this, you might want to pause and rethink. The price needs to align with the services provided. Don’t overpay for services that are outside the scope of your needs.
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- $Daycare Income Calculator
- Emergency Reserve Fund for Childcare Business
- The Best Months To Increase Daycare Rates
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Budgeting for an Accountant or Bookkeeper
I get it—adding another monthly expense might feel a little overwhelming, especially in an industry where every penny counts. But here’s the thing: investing in an accountant or bookkeeper can actually save you money in the long run. Not only will they help you stay on top of your finances (and avoid costly mistakes), but they’ll also help you find deductions and tax savings that you might miss on your own.
To budget for this, take a look at your financials and figure out where you can cut back or make adjustments. Maybe there’s a subscription service you don’t need anymore, or perhaps you can adjust your supply ordering system. Just remember: this is an investment in the health of your business.
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How to Know If You’re Paying Too Much
Let’s face it—no one wants to overpay for services, especially when you’re trying to run a lean childcare operation. If you feel like you’re being quoted way too high, don’t hesitate to shop around. There are plenty of qualified bookkeepers and accountants out there, so you don’t need to settle for someone who doesn’t fit your budget. Remember, the key is finding someone whose services match your needs, not someone who’s just trying to upsell you.
Final Thoughts: An Investment in Your Future
At the end of the day, bringing on an accountant or bookkeeper is one of the smartest moves you can make for your childcare business. Sure, it’s an added expense, but it’s also one that will free up your time and give you peace of mind knowing that your finances are being handled by a professional.
Think of it this way: you’re not just hiring someone to crunch numbers. You’re bringing on a partner who will help your business grow, thrive, and avoid costly mistakes. And isn’t that what we all want?
So go ahead and take the leap! Find the right accountant or bookkeeper for your business, and you’ll be able to focus on what you do best—caring for kids and running a thriving childcare business.
