This presentation will inspire child care business owners to effectively maintain their business budget. " Money is the Life Line of your business and it must be effectively managed."

1. How to Effectively Manage Your Budget in Your
Child Care Business
Presented by Shiketa Morgan

2. Money is the life line in your business and if it is
not effectively managed, you could go out of
business.

3. Topics we will cover…..
1. Why you should create a monthly budget
2. Your budget determines what you and your employees will be
paid
3. If it's not in the budget, don't buy it
4. If you don't like your budget...change your Income or your
Expenses
5. Choosing a Financial Software
6. Maintain receipts/business Expenses
7. Do you need an Accountant?

4. Why should you Create a Budget?
A Budget helps you to create a plan for your money
and it is a overview of how much income is flowing
into your business and where your funds are being
spent.
Let’s take a closer look at a Budget….

5. Rainbow Child Care Monthly Budget
Month: February 2011
Income
Parent Income: 2,000/mo
Subsidized Child Care Fees: 4,000
Total Income: $6,000
Expenses
Your Salary $2,500 ( to pay bills for the home, etc)
Teacher salary $1,200
Payroll taxes (soc, med, state taxes) $130
Telephone $150
Advertising Cost $100
Website fees $10
Food Cost $600
Gas for vehicles $200
Business Credit cards $100
Liability Insurance $75
Business supplies (office, classroom, events) $200
Postage $15
Total Expenses: $5080
Total Profit: $ 920
Subtract Expenses from the profit and you will get your profit!

6. Your budget determines what you and your
employees will be paid
When considering your salary and your employee’s
pay consider your budget. If your gross income is
$6000/month, your payroll should not be more
than $4000 or less to leave room for
(unexpected)expenses or a loss of income.
If you want to pay yourself more, then you will need
to cut from the budget, pay your employee less or
charge more for services.
Tip: When parents ask about your prices, they should know that your prices are based on the
cost of operating the business along with employee wages.

7. If it’s not in the Budget…Don’t Buy it!!!
Example:
You have a desire to buy tables and chairs, however, you have
created a budget to only buy crayons, markers construction
paper, scissors and paint for February. If you buy the
additional items….. You are at risk of over spending!!!
Wait until the next month to create a budget for other
supplies.

8. If you don’t Like Your Budget…. Change It!!
Don’t Like the Income that You see? Here are ways to increase your
Income:
 Raise rates for new families
 Hold 2-3 fundraisers a year
 Collect annual registration fee
 Offer occasional weekend or evening care
Are your expenses too high?
 Evaluate what you are spending your money on and make
necessary changes.
 Where could you save money and reduce the monthly expenses?

9. Choosing a Financial Software
Having a Financial software is a great way to manage
your income and expenses.
Recommendations:
 Quick books ($99-$199)
 Book Keeper ($24-$30)
Both Software's are great for payroll and profit and loss
reports! Quick books offers free trial online

10. Maintaining Receipts and Financial Records
 Create files for receipts (parent Income, food, gas, supplies,
etc)
 Enter Income into a computer software along with
expenses each week
 Plan a time to enter income/expenses into the computer
 Back up financial records to your computer or flash drive
(can be purchased for $10)
 Keep financial records for at least 1o years in the event of an
audit
Keep accurate records for accounting and tax filings to
protect in case of audit. ~Libock & Associates

11. Do You need an Accountant?
Just because you are a business owner, does not mean
that you love to keep financial records.
Signs that you need an accountant:
 Record keeping is not your favorite thing to do
 You are not willing to maintain your income and
expenses on a regular basis
 You prefer that someone else maintains
 your financial records

12. Questions/Answers???
1. Do you have a Monthly budget?
2. Did you consider your Budget before setting your salary
and/or your employee(s) salary?
3. Do you tend to over spend?
4. Do you need to make changes to your budget?
5. Do you use a Financial Software?
6. How is your record keeping?
7. Do You need an Accountant?
Feel free to post your questions….

13. Thank you all for Viewing This Presentation!
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