FAQs
Real answers for real preschool and daycare owners.
Running a childcare business is tough—finances shouldn’t add stress. Our FAQ page offers clear, practical guidance for providers, from tax deadlines to bookkeeping tips. Still have questions? Our childcare accounting experts are just a call or message away.
Strategy & Value Questions
What makes Radius different from other accounting firms?
We specialize in childcare businesses—and we’re preschool owners ourselves. That means our advice is rooted in real-world experience, not just theory. We know what works because we’ve been in your shoes. Our tax & accounting practice is led by Michael, PricewaterhouseCoopers alum and former agent with Large Business & International and Small-Business at the Internal Revenue Service.
Our purpose is to deliver a return on investment for every dollar spent on tax & accounting. This is different how most small businesses operate where the objective is to simply complete a tax return at the end of the year.
Do you only work with childcare centers?
Yes. We serve only preschools, daycares, and early education businesses. This singular focus allows us to offer industry-specific insights you won’t find at a general tax & accounting firm.
Our sole focus is to optimize your tax and accounting process so that it gives you the information you need and delivers a return-on-investment with value-added insight.
Do I need a Childcare CPA?
Put differently, do you want a general physician if you need a heart procedure? This detail is what other industries have known for years. If you run a childcare business, whether for-profit or not, own property, plan to expand, or retire comfortably a CPA with industry experience and insight is invaluable. Starting, growing and maintaining a successful childcare center means making smart financial decisions—from choosing the right business entity to maximizing legal tax deductions.
Our goal is simple: to help you keep more of what you earn so you can reinvest in your business and your future. Our clients typically have healthy profit margins. If this is not you, you need an experienced CPA who can help you focus on what matters.
Can I put my kids on my childcare center’s payroll?
We bet your children already work in your business. Whether helping with clean-up, social media posts, or helping with admin tasks—you can put them on payroll. Not only is this a great way to teach them about responsibility and income, but it can also be a tax-smart move. And- this income can be tax free to them.
Should I buy or lease a vehicle for my childcare business?
This depends on how much you’ll use the vehicle for business. If over 50% of the time is for business use—like transporting children, picking up supplies, or attending offsite events—then buying may be the better choice long-term. If business use is less frequent, leasing can offer a lower monthly payment.
IRS rules allow deductions for business-related vehicle expenses, but the percentage of business use must be well documented. We’ll help you determine the right choice for your situation.
What’s the failure rate for childcare businesses?
The good news is that childcare businesses have relatively low failure rates compared to other small businesses. Families always need reliable, high-quality care. However, the success of your center depends on sound financial planning, smart budgeting, and proper cash flow management. That’s where a specialized childcare CPA comes in—we help you build a sustainable tax & accounting foundation and avoid common missteps.
Should I buy an existing childcare center or start my own?
Ask yourself: How much financial risk am I willing to take on? Starting a center from scratch can be rewarding, but it often takes longer to build enrollment and cash flow. Buying an existing center typically comes with an established reputation, staff, and income stream—though you inherit any inefficiencies too.
The key is to:
- Evaluate the location and demographics
- Understand the value of assets (equipment, curriculum, client base)
- Review financial records and licensing status
We can help you assess your options and make a decision that aligns with your goals.
Common Pain Point Questions
I’m behind on my books—can you still help?
Yes. Many of our clients start that way. We’ll clean up your books, bring everything up to date, and build a system you can rely on moving forward—without the stress.
I’m not sure if I’m profitable. Can you help me figure it out?
Absolutely. Through custom financial reports and monthly review calls, we help you understand where your money is going, where you’re losing it, and how to improve margins.
Bookkeeping is eating up my time—can you take it off my plate?
Yes. We manage your books, reports, and strategy updates so you can focus on running your center. You stay informed, but we do the heavy lifting.
I’ve been using spreadsheets. Is that okay?
It’s a great place to start—but as you grow, manual spreadsheets can hold you back. We’ll help you migrate to accounting software like QuickBooks and automate processes to save time and reduce errors.
Service Clarity Questions
What’s included in your monthly services?
Our core plans include full-service bookkeeping, monthly reports, cash flow and budgeting support, and 1-on-1 strategy calls. We also provide year-end tax-ready financial packages and optional tax filing services.
Do you offer tax preparation?
Yes. We offer business and owner-level tax preparation for our accounting clients, so your books and taxes stay aligned under one roof.
How does your pricing work?
We offer transparent, flat-rate pricing based on the size and complexity of your center. No hidden fees. No surprise bills.
System Support Questions
Can you work with my existing QuickBooks account?
Yes. We can take over your current setup or optimize it for better visibility. If you’re not using accounting software yet, we’ll help you get started.
Do you help with budgeting and planning?
Absolutely. We don’t just record your numbers—we help you understand them and use them to plan smarter for staffing, tuition, expansion, or transitions.
Growth & Future Questions
I’m thinking about opening a second location. Can you help?
Yes. We’ll run financial projections, assess cash flow impact, and help you build a data-backed expansion plan.
I want to retire or sell in a few years—when should I start planning?
Now. Exit planning works best when you start early. We’ll help get your finances in order, improve valuation, and prepare for a smooth transition.
We Are Your Financial Experts.
Let’s Build a Financial System That Works for You
Whether you’re stabilizing operations or preparing to scale, we’ll help you stay on track every month.
Monthly Core Services
Strategic accounting and advisory services built specifically for daycare and preschool owners.
Tax & Financial Planning
We help you protect your revenue, forecast expenses, and build a long-term growth plan.
Childcare Financial Consulting
From bookkeeping to financial reports, we handle the numbers so you can focus on running your center.
Transition
Support
Whether you’re launching a new location or preparing to sell, we guide you through every financial step.
