The first step in how to keep track of your preschool expenses is getting a business bank account. It allows you to separate your personal income/expenses from business income/expenses.
Even though you probably had a few expenses on your personal bank account to start with, we can move all the reporting for your business into one place (your Profit/Loss Statements) and from here on out, all income and expenses will run through your business bank account. You should use your business debit card or credit card every time you create a new subscription or buy something for your preschool.
If you’re shopping at a store for both personal AND business items, then simply separate your order into two orders: one personal and one business. Then keep all your business receipts stored in a simple envelope system (one envelope for each category below).
You can put a rubber band around all the envelopes for one year, and label it that year. Keep all receipts for a period of 5 years. After 5 years, you can toss the receipts.
Create an envelope for each category below to store your receipts:
- Advertising (flyers, ads, t-shirts, postcards, promo materials, etc.)
- Contractors (1099 teachers you pay)
- Dues & Subscriptions (Google Workspace, GoDaddy, etc.)
- Events (events, field trips, graduation, activities, etc.)
- Gifts (teacher gifts, parent gifts, etc.)
- Insurance (liability insurance)
- Licensing (all fees associated to licensing, including city permits)
- Meals (food you buy for events or business lunches)
- Office Supplies (cleaning supplies, paper, ink, computers, etc.)
- Payroll (W-2 teachers or director you pay)
- Postage (USPS or UPS postage to mail items or letters)
- Professional Fees (lawyers, DBA, LLC, Preschool System purchases)
- Rent (money you pay to a church or a lease for your preschool)
- Repairs (any repairs/maintenance for anything in your preschool)
- Supplies (playground, curriculum, arts & crafts, furniture, etc.)
- Taxes (estimated payments, quarterly filing, etc.)
- Utilities (internet bill, cell phone bill, utilities for rented space)
We hope this has helped you learn how to keep track of your preschool expenses. Be sure to check out this article too: How to Create a Preschool Budget.