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Controlling cash in daycare and nursery school accounting

One of the difficulties in the Daycare and Nursery School Industry of Chicago is controlling cash.

First of all, we want to make sure that all of the cash that comes into the center is reported and given to ownership. Second, if we have an Action For Children student with a co-pay, we want to make sure that this money gets collected. Third, if the cash comes in and is not accounted for properly, then we could have a problem with either the Internal Revenue Service or the State of Illinois when it comes down to evading income taxes. If we have a problem with the State, then we have some real problems, because we could lose our certification and our funding.

These problems can become even more difficult when you realize that the State of Illinois already has most of the basic numbers necessary to audit your income. They certainly don't have exact numbers week to week on your enrollment, but they certainly know how many Action For Children families that you serve along with their expected co-pays. In addition to that they know how many traditional pay students you have, and can recreate what your income should have been. Its not very difficult for the IDOR to come up with income numbers for your center. This is one of the reasons that centers are audited so regularly. Of course, if you get audited by the State, and they find your income off substantially, it will probably get referred up to the IRS, where you will probably lose as well.

If your numbers are off too far, then you could be guilty of tax evasion which if punishable by additional tax, penalties, interest, and potential jail time.

As highly recommended CPA's and EA's in Chicago with years of experience in the Daycare and Nursery School Industry, we have been solving these types of problems for many years. Don't try to handle this by yourself. If you don't control your cash and income, you put your entire business and even potentially your own freedom at stake. Call Chris Amundson at (773) 267-7500 today. Our experience and easy to implement solutions, if handled properly, will protect your business and your family from these types of problems. Dealing with this yourself is just too dangerous. The Special Accounting Packages section of this page may have what you need. Whether you have a new business, an audit, need returns filed, or just a second opinion, we can help. Call or e-mail Accounting Solutions today.