child care accounting
Being a child care director is both a challenging and exceptionally rewarding job. The nuances of combining physical care and education in a nurturing environment requires a special person, because there is so much to do.
More than providing high quality care for each child, building curriculum and working together with parents to ensure development, you are also running a business. This means taking care of time consuming administrative tasks to ensure the continued success of your center, such as collecting tuition, calculating payroll, managing supplies, and more.
Of course, there are also state licensing requirements that must be addressed to ensure your child care business complies with legal standards. These include attendance and meal tracking, monitoring employee training and certifications, and assuring that proper teacher-student ratios are met.
Child Care Management Checklist
Here we have created a mini-checklist to guide you through the many management tasks in your center, as well as solutions to help streamline the process.
While receiving just one payment might seem like a small thing, accepting the check, writing a receipt and recording it in a ledger or spreadsheet can be a 5 minute task. Easy, right? If you have 60 families and you’re handing payments this way twice a month, you could be spending up to 10 hours on managing payments alone. That is once you have tracked each payment down. Parents are busy and can often forget when their next payment is due, leaving child care providers to track them down at check-in time or the end of the day.
Procare’s Tuition Express® gives you easy options to process all payments at once or let parents pay at check-in and online. Since it’s fully integrated with Procare, each payment is automatically posted to the the family’s ledger.
Maintain Room Ratios
Juggling teachers, aides and children between rooms is an all-day, everyday chore. If one teacher goes on a break, you could go over your limit. In addition to licensing requirements for each age group that dictate a certain number of staff members must be present per child, ratios can also affect your finances. Having too many teachers staffed on a day when there are fewer students means you are spending money unnecessarily. That is why an accurate view of how many children are in your care on a daily basis is necessary.
Procare’s dashboard offers you at-a-glance classroom counts and shows any that may be understaffed.
You know the drill—climbing a mountain of paperwork each month to compile your meal reports. If you’re participating in the CACFP and you’re not using Procare’s Meal Tracker to handle meal counts and help with reporting, you’re working too hard.
Laugh at Your Bottom Line
Weekly and monthly financial tracking by itself, is a full-time job. If you don’t have a bookkeeper on staff, you know that tracking, reporting, and reconciling takes time. Procare’s Expenses and Ledger module handles these tasks and more… tracking expenses, generating overall financial reports, and helping you manage your budget all year long.
Child care management is a dynamic job that requires interpersonal skills as well as business acumen. With this checklist, child care professionals can ensure they are maintaining their business, while saving time.
Learn how Procare helps child care providers complete administrative tasks everyday.
Interested in learning more about saving time at your child care business? Check out these related articles:
How did you celebrate the start of the year? Perhaps you had colorful noisemakers and party hats to mark the occasion.
But now that the calendar has made its annual transition from December into January, it’s time to be thinking of new year tasks for your child care business.
To help answer your typical end-of-year and new year questions, we’re offering a free webinar called “Start the Year Right with Procare”. If you’re currently using Procare Software and have accounting information entered for the last year, you’ll want to attend this session which is offered multiple times throughout January.
We’ll cover Family Accounting tasks, like end-of-year statements for parents, as well as holiday hours and W2s for employees, overall financial reports, and setting beginning balances for the new year.
Best wishes for a successful and happy new year, and until next time, cheers!
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Have you ever tried to compare two child care accounting reports and been puzzled why the numbers don’t always match up? Long time readers may recall the article Apples, Oranges and Accounts Receivable, which had a similar theme.
For today’s take on comparing apples to oranges, we’re pleased to welcome guest blogger, Steve Suarez, from the Technical Support team at Procare Software®.
Deposit Reports and the Charge Credit Summary
Many people try to tie their Deposit Reports to their Charge Credit Summary reports as a check to see that all funds have been deposited correctly.
Although it’s possible the payment totals could match up on these two reports, often they do not. That’s not an indication that anything is wrong, it’s just that apples (Deposit Reports) don’t necessarily look like oranges (Charge Credit Summaries). Continue reading
Are you burning through your jar of pencils trying to manually track receivables and payments for each of your child care and after school programs? Let Procare Software® save the wear and tear on your eraser with the newly released Fund Accounting feature mentioned in our recent article on What’s Coming Soon to Procare.
Fund Accounting is the perfect way to track accounts receivables, as well as the funds collected, for each of your individual programs. For example you may want to know what is owed for preschool separately from school age or registration fees. Continue reading
If you work in early childhood education running a childcare center, daycare or preschool you’re certain to be familiar with weekly and monthly tuition fees charged to families and subsidizing agencies. In fact you may even use Procare Software to help with daily child care management tasks, especially when it comes to charging recurring child care fees.
With Procare, Child Care Billing may be automated by setting up regular billing cycles like “Weekly” and “Monthly” to easily process tuition charges for all families at once. This is a great time saver, but of course sometimes fees change based on the calendar. You may charge one amount during the school year and another for summer. Or, the rates may change when a child reaches a certain age and moves to a new classroom. Wouldn’t it be great if that weekly amount could be tied to particular dates on the calendar – allowing the amount to change automatically based on the dates entered? Continue reading