Audit mindset (without panic)
Most providers never face a dramatic audit. Still, good records are how you sleep in March. Aim for contemporaneous logs (written near the time of the event) and a single year-end folder you could hand a CPA.
Income records
- Parent ledgers or tuition software exports
- Bank / payment-processor deposits tied to care
- Copies of any 1099-K / 1099-NEC / other information returns
- CACFP reimbursement statements
- Written fee schedules and contracts (even if informal)
Time-Space / home office support
- Floor plan or sketch with room square footage
- Notes labeling exclusive vs regular-use daycare space
- Annual hours log (care + prep/cleanup + other allowed daycare hours)
- Calculation worksheet or calculator printout/PDF showing Time-Space %
- Home expense statements (mortgage interest, utilities, insurance, repairs)
- Completed Form 8829 workpapers
See How to calculate Time-Space % and the free calculator.
Meals & food
- Daily or weekly meal/snack count logs by type
- Rate source note (Pub. 587 year or provisional USDA-derived rates + date verified)
- If using actual cost: grocery receipts with business vs personal method documented
- CACFP menus / claim summaries if applicable
Expenses & vehicle
- Receipts or invoices for supplies, toys, training, ads, insurance
- Bank/credit card statements (business account preferred)
- Mileage log (date, purpose, miles) or actual vehicle expense file
- Licensing and background-check payment proofs
- Payroll records if you have employees
How long to keep files
IRS record-retention guidance varies by situation (often at least three years from filing, longer in some cases such as substantial underreporting or assets). Ask your tax professional for a retention policy that fits you. When you dispose of records, shred sensitive parent information.
Georgia FCCLH providers should also follow DECAL retention rules for children’s records and drill logs (some items are kept well beyond a single tax year). See the Georgia paperwork checklist.
Build the folder as you go
The Tax Workbook produces CPA-handoff style summaries; the Georgia Pack helps licensing files stay complete. Neither replaces official IRS or DECAL documents.