Read Learn Child My To Tips
My daughter's kindergarten teacher uses flash cards with what she calls "sight words" -- words that kids should know on sight.
a, an, the, then, than, for, is, you, I, me, we, us, and words that are so common like that. It really does help. She also recommends when you are reading to follow along with your finger so that kids get an idea of how we read from left-to-right, top-to-bottom. Sound out words, don't just read them. My daughter has made real progress with this, and is able to sound out or recognize a lot more words now. She'll be 6 in a few weeks, and is starting first grade on Monday. Very exciting!
I wish you luck with your daughter! This is a very magical time for kids this age -- everything is new, and they get such a sense of accomplishment with each step forward.