Family Day Care Advice from your friendly local Family Day Care Accountant
Family daycare business is as challenging as any other business. FDC makes it even harder when you are trying to look after kids and managing books for the business without professional assistance. As a leading firm in providing specialised accounting services to Family Day Care educators across Australia, we understand your accounting needs very well because we keep ourselves up to date with latest changes to government policies and taxation law.
We receive lots of queries about what educators can and can’t claim for their Family DayCare business. There is no straight forward answer to this as it totally depends on educators individual circumstances. As a specialised Family day care accountant, we can guide you through every step from setting up your business, how to keep good records and at the end of financial year lodging your tax returns. Following are some areas where most educators make mistake in their record keeping.
Home based business expenses: Make sure you are claiming the right percentage of your running expenses. If you are renting you may be entitled to claim part of your rent for the area you exclusively use for Family Day Care Business. If you running a business from your own home and that is your primary residence as well, be aware about future CGT implications if you claim Council rates, Mortgage interest and sewerage costs.
Motor vehicle: You can generally claim running expenses such as fuel, repair and registration. If you are using your car for business and privately, then you must apportion the business use and private use. We recommend you complete logbook for twelve continuous weeks so at the end of year we know how much you can claim. But if you use your motor vehicle exclusively for business you may be able to claim 100% (Substantiation required).
Repairs and Improvements: If you repaired some area of your house that was damaged exclusively related to family day care business then you are entitled to claim full amount. But if you have done major improvement ((e.g. adding room, huge renovation etc.) to your house then you may not be able to claim the full amount.
We at Key Business Accountants understand this industry very well. If you have any question please feel free to contact our Family DayCare Accountant on 1800 979 888 to make an obligation free appointment.