Using Lillio to Simplify Tax Receipts in Early Childhood Education

As the 2025 tax season approaches, childcare center directors and owners are faced with the annual task of organizing and processing tax receipts for families. Managing this crucial aspect of your childcare center’s operations can often feel overwhelming, but with the right tools, it doesn’t have to be. Lillio’s comprehensive childcare management app offers valuable solutions that can streamline your tax preparation, saving you and your families time.

In this blog, we’ll explore how Lillio can simplify your 2025 tax season and provide essential tips for managing your tax filing efficiently, ensuring your childcare center remains compliant while making tax time easier for everyone.

→ Read our Directors Guide To Tax Season here

1. Prepare Early with Accurate Information

One of the most critical steps in preparing for tax season is ensuring that your center’s information is up to date. This includes the center’s address, tax ID, and contact details, all of which are necessary for generating tax receipts. Lillio makes this process simple by allowing you to easily update your center’s details within the app.

All Lillio users have to do is navigate to logins & configurations in their director dashboard and click on center settings, where they can enter or update their center’s address and tax ID. After this, the system will pre-populate this information in tax receipts, ensuring that everything is accurate and ready when the time comes to generate and publish the receipts.

2. Streamline Tax Receipt Generation with Lillio Billing

Lillio’s billing and payments system simplifies the process of generating and managing tax receipts for the families at your childcare center. Tax receipts are issued based on completed transactions for a given year, and Lillio allows you to generate, review, edit, and publish them all within the app.

Here’s how easy it is for Lillio users to get started:

• In your Lillio director dashboard go to Billing & Subsidies → More → Tax Receipts.
• Select the Tax year for which you’d like to issue receipts.
• Click on Generate Tax Receipts. It’s recommended to wait until all transactions are completed to avoid missing any unpaid or pending balances.

That’s it! This simple process reduces the stress of manually tracking payments and ensures that all tax receipts are accurate and ready for publication.

3. Edit and Finalize Tax Receipts with Confidence

Once you’ve generated tax receipts, it’s important to double-check the details before making them visible to parents. Lillio allows you to edit tax receipts if any mistakes are found, such as incorrect payer names, childcare fees paid, or refunded amounts.

To edit a tax receipt, Lillio users simply need to:

• Navigate to generated tax receipts within their Lillio account.
• Click on the three dots (⋮) next to the receipt and select Edit.
• Make the necessary changes, and click Save.

It’s essential to verify all details before you publish tax receipts, as any adjustments made after publishing will be visible to the parents in the Lillio parent app. This ensures full transparency and reduces the risk of errors.

4. Publish Tax Receipts for Parents

Once you’re confident that all details are correct, it’s time to publish the tax receipts. Lillio allows you to publish tax receipts directly to the Lillio parent app, where parents can view and download them.

Here’s how easy it is to publish tax receipts in Lillio:

• Navigate to Billing & Subsidies → More → Settings.
• Select the tax year from the dropdown menu.
• Enter the issuer’s name and optional signature.
• Click Publish Tax Receipts, and confirm.

Once published, parents will receive a notification in the Lillio app that their tax receipts are available for viewing. These receipts will be locked and cannot be edited after publication, which ensures that the final figures are accurate and secure.

5. Ensure Correct Payer Information

Tax receipts are generated per payer, meaning each parent or guardian will receive a separate tax receipt based on the payments made for their child. If a payer has multiple children enrolled at your center, Lillio will automatically generate separate receipts for each child.

If a payer’s information is missing or incorrect, you can manually add them to the child’s profile to ensure the tax receipt is generated in the future. This feature helps maintain accurate records for every family, streamlining the process and avoiding confusion during tax season.

6. Unpublish and Make Changes If Necessary

If you need to make changes to the tax receipts after they have been published (e.g., correcting an address or tax ID), Lillio offers a simple way to unpublish them and make the necessary updates. To do this:

• Go to Billing & Subsidies → More → Settings.
• Select the tax year and click Clear fields and unpublish.

This feature allows you to control access to the tax receipts, ensuring that parents only see the finalized version once all adjustments have been made.

7. Communicate with Parents Efficiently

Lillio’s messaging center makes it easy for childcare providers to notify parents when their tax receipts are available. Once you’ve published the receipts, you can send a message directly through the Lillio app to inform parents that their tax documents are ready for viewing.

This proactive communication helps reduce confusion and ensures that parents are aware of when and where to access their tax receipts. It also improves the overall experience for families by providing a centralized location for all important tax-related information.

8. Maximize Tax Benefits for Parents

With Lillio’s streamlined tax receipt system, parents can effortlessly access their tax receipts to use when filing their income taxes. Many families may qualify for tax benefits such as the Child Tax Credit from the IRS, which offers a tax break on eligible expenses for families in the U.S. with young children. In Canada, families may be eligible for the Canada Child Benefit, a government program designed to assist with the cost of raising children. Additionally, parents may be entitled to other tax deductions related to childcare expenses. By providing accurate tax receipts promptly, you help families maximize these valuable benefits while also improving their experience with your childcare center.

9. Stay Organized Throughout Tax Season

One of the most important aspects of managing tax season is staying organized. With Lillio, you have access to comprehensive tax reports that ensure you remain on top of everything. Whether it’s tracking gross income from childcare fees, monitoring tax forms, or reviewing your filing status, Lillio offers all the tools you need to stay organized and on track.

Conclusion: Lillio Makes Tax Season Easier for Everyone

Tax season doesn’t have to be stressful. By using Lillio’s child care software, daycare centers can simplify the process of generating, managing, and publishing tax receipts. The app not only streamlines the workflow for directors and owners but also enhances the experience for parents by providing them with easy access to necessary documents.

Curious to learn more? Request a demo today and see how Lillio’s billing and payments feature can transform and simplify your tax season today! Click here for more information!