Key Topics for Quarter 4 CPA Meetings

 

Quarterly conversations with a childcare CPA are crucial, especially as the year closes and tax season approaches. Here’s a friendly, in-depth guide from Honest Buck Accounting with the essential questions and actionable steps to take for a successful year-end review and a smooth start to the new year.

Before you wrap up 2025, schedule a sit-down with your CPA to cover these important topics. Tackling them early means less stress and big savings in the long run.

Year-End Financial Reports

Asking to review your financial reports helps you understand how your childcare center performed financially over the year. Examining your Profit & Loss Statement, Balance Sheet, and Cash Flow Statement shows where your money went, where it came from, and if you operated at a profit or loss. This clarity helps you make decisions about tuition, staffing, and buying supplies. Knowing your numbers means you’ll feel less overwhelmed when tax time arrives and more confident in steering your business.

• What to Ask: “Can we review my business financial reports for the year?”
• Action Plan: Run and review your Profit & Loss Statement, Balance Sheet, and Cash Flow Statement together, confirming everything is up to date and reconciled. Use this session to spot any issues and update any missing information before tax time.
• Why It Matters: Accurate financials make tax prep and business planning easier.

Vendor List Cleanup

Updating your vendor list ensures you’re only paying for what helps your center thrive and have correct records ready for tax forms. Cleaning up these lists means no wasted payments and easier filing. It’s a simple way to make sure you know where your resources go and to avoid expensive mistakes or penalties.

• What to Ask: “Is my vendor information ready for tax filing?”
• Action Plan: Update contact info, remove inactive vendors, and link every expense to a vendor. This makes filing those 1099s quick and easy.
• Why It Matters: Saves time and avoids headaches when issuing tax forms.

Tax Document Preparation

Understanding which tax forms need to be filed (like W-2s, 1099s, Form 941 and 940) sets you up for full compliance and keeps your business protected from IRS penalties. It’s about more than just following the rules—it’s about making sure everyone who works with or for you gets the right paperwork. These preparations also help you spot credits or deductions that save money.

• What to Ask: “Which tax forms need to be filed before the end of the year?”
• Action Plan: Review W-2s for employees, 1099s for contractors, Form 941 (Social Security/Medicare), Form 940 (FUTA), and Form 1095c (health insurance). Set deadlines and delegate prep tasks.
• Why It Matters: Missing or late forms mean penalties or lost credits.

Employee and Payroll Updates

Checking employee details and payroll makes sure everyone is paid the right amount and tax records are accurate. Keeping info up to date helps your center run smoothly and prevents payroll headaches. Planning for raises or bonuses shows staff you value them and supports positive morale.

• What to Ask: “Is my payroll and employee contact info current?”
• Action Plan: Verify personal details, update access to financial systems, and plan raises/bonuses with your CPA. Adjust payroll budget as needed for next year.
• Why It Matters: Prevents payroll errors and keeps your team happy.

Staffing and Outsourcing Review

Considering staffing changes or outsourcing needs helps you anticipate costs and avoid surprises next year. It allows you to plan for growth and streamline what your center does best. These moments are perfect for clarifying future budgets and ensuring the accounting matches your real-world needs.

• What to Ask: “Should I hire or outsource in 2026—and what are the tax impacts?”
• Action Plan: Discuss staffing changes or contractor needs, then plan hiring or outsourcing strategies to optimize finances and compliance.
• Why It Matters: Proactive planning avoids last-minute budget stress.

Future Business Needs

Asking about upcoming expenses or upgrades lets you prepare for improvements, plan for big purchases, and spread out costs for better budgeting. This is how smart businesses grow without stress and avoid sudden financial strain. It also makes tax planning smoother since strategic purchases can mean more deductions.

• What to Ask: “What major expenses or upgrades should I plan for in the new year?”
• Action Plan: List needed improvements—software, equipment, renovations—and review expense timing and tax strategies with your CPA.
• Why It Matters: Smart timing may save on taxes and improve budgeting.

Tax-Saving Strategies & Tech Solutions

Maximizing deductions and leveraging technology (like brightwheel’s accounting tools) means your daily work is easier and your business keeps more of its hard-earned dollars. These conversations reveal ways to cut costs, simplify billing, and stay organized. Utilizing new technology transforms paperwork into a breeze and keeps you ready for every deadline.

• What to Ask: “How can I maximize deductions or use modern tools for tax prep?”
• Action Plan: Review eligible business expenses, depreciation, and credits specific to childcare. Explore apps like brightwheel, which streamlines billing, financial records, and reporting for easy year-round tax management.

Learn more about brightwheel and its tax prep features for childcare businesses with a direct demo booking.

Action Steps & Next Moves

• Schedule a quarterly meeting with your CPA before year-end.
• Bring a checklist of topics above and all relevant documents.
• Update financial records using a child care accounting tool/product.
• Back up digital files and review security/access for sensitive information.
• Plan next year’s staffing and budget based on actionable CPA advice.

With each chat and checklist ticked, year-end becomes an opportunity—not an anxiety. Honest Buck Accounting is here to help childcare centers finish 2025 well and step into the new year with clarity and confidence.