3 Steps To Monitoring Your Expense and Income

Are you shocked or surprised by the overwhelming skill set that it requires to own and manage a successful childcare business? Several childcare business owners, like yourself, just truly thought, caring for kids would be easy, and simple, and all you had to do was love and nurture them.

However, behind the scenes of every successful childcare business, there has to be some type of financial business knowledge about your income, and expenses, and how to prepare for your weekly worksheets  to cover your income and expenses in your childcare business. In order to create a worksheet for income and expenses, you must be able to monitor your business. You must be able to monitor what goes in your business and what comes out of your business every single month, week, and day.

Now for those of you who have a bookkeeper, or CPA, or an accountant, kudos for you, but there are several of you childcare business owners who haven’t hired the right professional to help you take your business to the next level. Now as you read this blog, it’s only intended for self-help and to clue you in on what are some of your options that you will need to do to really track your income and expenses. I highly recommend that you check out a professional to help you get your financial records in order so that you can be on your way towards success and business.

One of the things I know is that your confidence and your ideas all spring from a place of your finances. What do I mean by that? If you’re financially happy in your life and in your business, then your soul or your emotions are happy, as well. You must take a look at your finances so that your finances are in line with your goals, your vision, and your dreams for your life so that out of your heart can spring forth happiness.

I want to give you a few ideas of what you need to know every single month, day, or week, in your business to help you track your income.

#1 The first numbers that you need to know in your business is to understand what income you’re receiving directly from your parents.

Having the idea of how much income you’re receiving directly from your parents is key. Every single week, or day, or month, you’re going to experience an expenditure for caring for the kids. Be sure that you understand how much income you can expect from your parents every single week. This is why I love my task management system. My worksheets prompt me every single month to know what it is that I am expecting to make from my parents in my childcare business.

#2 The next step is know how much you are due to receive from any type of childcare assistance or government agency funding.

Keep track of your food program reimbursement and your anticipated enrolled children who are billed to receive your services.  You want to be able to calculate the amount of children that you have enrolled to determine what your income will be for that month. Knowing what you’re receiving from your food program is necessary so that you can budget out and know what you should order so that you’ve generated some of that as income.

 #3 Next, you want to know what you have going out of your business as expenses.

Your expenses will help you determine whether or not your business is financially healthy and making profits. Now you may say, “Andrea, what is considered as an expense?” An expense is whatever it costs you to care for a child in the day-to-day running activities of your business and just be sure to know that that list can go one and on!  You definitely want to make sure that every single month that you’re keeping up with these costs so that when it comes to you knowing what you’ve spent in your business, you have a clear picture of what’s expected of you and where your money is going.

If you’ve never created a budget before, then some of the things that I’m telling you about may seem weary or out of the norm for you. I have a system inside of my Childcare Acceleration Program that will make this process so easy for you. I want to get you this system, and my system for budgeting is so easy it lays everything out for you, it shows you what you need to make sure that you tally every single month in your business to stay in control of your finances. To find out more, log onto www.ChildcareAcceleration.com.