Child care centre financial management

child care financial management

Quality bookkeeping services set the foundation for sound financial management in Australian child care centres

Beyond the basic importance of using budgets and financial statements to run a business successfully, understanding the financial status of the centre is essential to planning and undertaking the week-to-week operations, or development or expansion of a child care centre.

Some risks may affect any child care centre including:

  • Economic conditions
  • Population demographic changes affecting demand
  • Corporate fraud
  • Increasing costs that are not offset by increased revenue
  • Loss of liquidity (cash flow)
  • The occurrence of a major event for which there is no insurance

Other risks will vary according to the size and type of provider. Smaller child care centres may face issues about access to financial management skills, maintaining service viability given their small size or obtaining access to capital to fund maintenance and upgrades to their facilities. Some centres may rely on regular payments from government to maintain a positive cash flow.

Larger child care operators may be better placed to deal with these risks in some ways, for example, through more professional management, having easier access to capital, centralising some overhead functions or sharing staff and resources across centres. However, they may also be exposed to additional risks by virtue of being larger and more complex organisations to manage.

We have been specialising in bookkeeping for child care centres since 2004 and have the experience and procedures to work with any child care centre in Australia. We can help establish sound financing data for your centres and avoid problems of non-compliance, unrecognised theft, or inaccurate financial reporting.

Australian child care centre operators

Providers of child care services range from small, single-entity crèches servicing a highly specific region (and possibly an age group of children), to large firms with multiple establishments nationwide that offer services for all ages of children and all levels of education.

Most Australian child care providers are small, operating one or a few services at most. In June 2010 there were 13 899 child care services of all types approved for the purposes of the family assistance law.

The largest numbers were Outside School Hours Care (OSHC) services (7,495) and Long Day Care (LDC) services (5,930). However in terms of the numbers of children cared for (869,770 in total as at June 2010), the majority were in LDC (60.7%), followed by OSHC (29.5%) and Family Day Care (FDC) (12.1%).

Get the support you need to enable sound financial data in your child care centre. Contact the specialists in bookkeeping for child care centres, Accounts Advantage. We have an experienced team on hand to manage your child care centre financial requirements.

We are based in Brisbane and work with child care centres around Australia through remote access to data held in QikKids and other child centre management systems.

Contact us online or call 1300 400 105 for a complimentary introductory discussion.

 

 

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