Mastering Your Money in Your Child Care Business
I was inspired to write this blog post after processing my monthly payroll and paying the bills in my childcare business. As I wrote checks to pay my business bills, I realized the importance of cash flow. In fact, when you have cash in your business, you are able to buy the things that your business needs and pay your business debts.
Several weeks prior to paying my bills, I realized that I did not finish processing my food program claim, because I was so focused on getting my center re-accredited.
When I realized that I had not finished processing my food program claim, it was too late to receive my payment in the month of February. Unfortunately, I discovered that my payment was going to be late and this was going to cause a delay in my accounts payable.
Several weeks later, I received that my food program payment and I was so glad that I had funds to pay bills. Furthermore, I realized that when there is a cash flow problem, this will cause you to be late paying your bills and it also prevents you from buying what you need for your business.
To assure that you have a constant cash flow in your childcare business I want to suggest the following to you:
- Create a monthly budget for your business
- Only buy what you need for your business
- Never stop marketing your business
- When you are not able to pay your bills, make payment arrangements with your creditors to protect your credit.
- Be diligent about collecting payments from parents. I suggest collecting payments 2-4 weeks in advance.
- Process Subsidized Childcare Payments & Food program claims by the due dates
- Always be on the look out for business grants
- When parents do not pay on time, charge a late fee.
This is just a small list of ways to master your money, because after all…your money is the lifeline of your business. Moreover, when there is no money; there is no Cash flow!
Do you want to become a master of your money? Are you ready to improve your business management skills? Join the Child Care Center Owner eClub. Join Today!
Are you a home daycare provider? Feel free to check out the Family Home Child Care Business Empowerment Club, where you will be empowered and inspired to manage your money and build a quality in-home preschool.
With Your Business in Mind,
Be sure to check out the video below and I look forward to your feedback about this post……