INDUSTRY · CHILD CARE
Bookkeeping for daycares
and child care centers.
Bookkeeping for daycares records parent tuition, state subsidy payments and CACFP food reimbursements as separate income, matches each subsidy deposit to the children and weeks it covers, books payroll from the payroll report, and keeps what each family paid so year-end statements are right. ZeraBooks bookkeeping services keep child care books from $150 a month.
Free call · from $150 a month (USD) · centers and home daycares
WHAT MAKES DAYCARE BOOKS DIFFERENT
Why is bookkeeping for a daycare different?
Child care runs on thin margins and money from three directions: parents, the state and the federal food program. Each pays on its own schedule.
Parents pay weekly or monthly
Tuition comes in by card, ACH or check, often a family at a time. Registration and late pickup fees are small lines worth keeping separate from tuition.
Subsidy arrives in lumps
State child care subsidy for eligible families is paid in one deposit for many children, usually after attendance is submitted. The deposit has to be matched to the families and weeks it covers, or the parent copay looks short.
The food program pays a month late
CACFP reimburses meals and snacks served, after the monthly claim is filed. September’s deposit is often August’s meals, so food costs and reimbursements rarely line up in the same month.
Payroll is most of the costs
Ratios set how many staff you need, so wages are usually the largest line by far. The books record gross pay and employer taxes from the payroll report, not the net deposits.
Parents need a year-end statement
Families claiming a dependent care FSA or the child care credit need what they paid and your taxpayer ID. That only works if tuition was recorded by family all year.
Tell us about your books. We’ll scope the work and quote it before anything starts.
CHART OF ACCOUNTS
What chart of accounts does a daycare need?
A starting list for a licensed center. Home daycares use the same income lines and add home expense accounts.
| Account | Type | What goes in it |
|---|---|---|
| Tuition, private pay | Income | What parents pay |
| Subsidy income | Income | State child care assistance payments |
| Food program income | Income | CACFP reimbursements |
| Registration and other fees | Income | Enrollment, late pickup, activity fees |
| Wages | Expense | Teachers, aides, director, from the payroll report |
| Food | Expense | Groceries and meal supplies |
| Classroom supplies | Expense | Art, learning materials, diapering supplies |
| Prepaid tuition | Liability | Tuition paid for weeks not yet provided |
WORKED EXAMPLE
What does a daycare’s month look like in the books?
Little Acorn Learning Center is a fictional licensed center with 48 children enrolled. Here is September 2026, cash basis.
| Line | Amount | Account |
|---|---|---|
| Parent tuition, card and ACH | 38,700.00 | Tuition, private pay |
| State subsidy deposit, 14 children | 11,240.00 | Subsidy income |
| CACFP reimbursement for August meals | 2,165.00 | Food program income |
| Registration fees, 3 new families | 450.00 | Registration and other fees |
| Payroll, gross wages | (29,800.00) | Wages |
| Employer payroll taxes | (2,279.70) | Payroll taxes |
| Groceries | (3,980.00) | Food |
| Classroom supplies | (1,120.00) | Classroom supplies |
| Rent | (7,500.00) | Rent |
| Liability insurance | (890.00) | Insurance |
| Card and ACH fees | (420.00) | Merchant fees |
| September profit | 6,565.30 |
Revenue is $52,555 and expenses are $45,989.70. The $2,165 food deposit pays for August’s meals while September’s $3,980 of groceries will be reimbursed in October, which is why one month’s food line never looks right on its own. Compare food cost with food income over a quarter instead.
HOME DAYCARES
How do home daycares handle the house in their books?
A home daycare uses part of the house for the business, often for long hours. The IRS lets daycare providers work out a time-space percentage: the share of the home used for child care times the share of hours it is used. Rent or mortgage interest, utilities and insurance are then deducted at that percentage (IRS Publication 587). The books keep the household bills and a log of hours; your accountant does the calculation. Home providers who also need a general guide to the year can read year-end bookkeeping.
WITH ZERABOOKS
How does ZeraBooks keep a daycare’s books?
Our team keeps the books on our own AI-native ledger. You upload documents and see every month in a read-only login.
- 1
A free call
Center or home, how many children, which subsidy and food programs you take part in and how families pay. The price is agreed on the call.
- 2
Upload each month
Bank and card statements, your child care software’s payments report, subsidy and CACFP remittance notices and the payroll report.
- 3
Every deposit placed
Tuition, subsidy and food program money in their own accounts, with subsidy deposits matched to their remittance notices.
- 4
Year-end statements ready
Payments by family kept all year, so January’s parent statements come from the books. See monthly bookkeeping services for what each month includes.
MORE INDUSTRIES
Books for other kinds of business
- Church accounting softwareFunds, restricted gifts and several bank accounts in a general ledger.
- Bookkeeping for nonprofitsRestricted grants, functional expenses and a worked month.
- Bookkeeping for restaurantsPrime cost, tips and sales tax, with a worked month P&L.
- Bookkeeping for law firmsTrust accounts, three-way reconciliation and a worked month.
- Bookkeeping for property managementTrust accounts, deposits and a 12-unit worked month.
- Bookkeeping for contractorsRetainage, over and under billing, and subs.
How much does daycare bookkeeping cost?
ZeraBooks starts from $150 a month in U.S. dollars, with the exact price agreed after a free call. A home daycare with one account sits at the low end; a center with subsidy and food program money costs more.
Do you file subsidy attendance or CACFP claims?
No. Your center submits attendance and food program claims. ZeraBooks records the payments when they arrive and matches them to the remittance notices you upload.
Do you send parents their year-end tax statements?
We prepare the totals by family from the books so you can send them. The statement itself goes out from your center, with your taxpayer ID.
Is a nonprofit child care center different?
Yes. A nonprofit center tracks grants and restricted funds and files a Form 990. Our guide to bookkeeping for nonprofits covers that side.
Does ZeraBooks connect to my child care software or bank?
No. Export the payments report and upload it with your bank statements. Each month is checked against the bank statement to the cent. Centers that have fallen behind can start with catch-up bookkeeping.
WE DO YOUR BOOKS
Look after the kids.
We’ll look after the books.
Tuition, subsidy and food program money, proven every month from $150 (USD). Book the free call. Prefer to do it yourself? The same ledger is available as ZeraBooks AI bookkeeping.
Last updated November 4, 2026 · Written by Damin Mutti, founder of ZeraBooks