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Sample Family Child Care Cash Flow / Financial Projections Spreadsheet - EXCEL Format (formulated for computer)


Sample Family Child Care Cash Flow / Financial Projections Spreadsheet- PDF Format

(to print out and fill in)

*Please note-documents print on

legal size paper

It’s hard to stay afloat in either business or personal finances if you don’t have, and follow, a budget. Your budget tells you how much income you are bringing in, how much you are paying out in expenses, and what you have left over – your profit. If you don’t already have one, you need to develop a budget.
It’s hard for many people when they first sit down to develop their budget because they have no real idea how much they are bringing in or what they are spending. It’s critical that you develop a method of record keeping and are diligent about recording your earnings and expenditures. For some people, the easiest way to do that is in a spreadsheet on the computer, for others, pen and paper are most effective. Choose the method that is easiest for you because if it isn’t convenient or natural, you won’t be able to keep it up.
When putting together your budget, be sure to include the following as well as any other income or expenses unique to your business and family:

 

Cash Flow Projections and Planning for the Future  

Cash flow projections

A budget allows you to project future cash flow, which makes it possible to plan for expansion or quality improvements. When projecting future cash flow, keep in mind that there are several issues and/or events that can affect income such as:
• Expansion, Natural ebb and flow of enrollment cycles, Economy,Changes in family/location/spouse’s income
and Marketing

 

Long-term financial planning

Budgeting also makes it possible to plan for long-term financial goals. There are some steps you can take now to ensure stability and security when you are ready to retire. Remember to **Pay yourself first! Saving even $25 a month can add up, and if you put nothing away now, you have nothing later.  

I would advocate that paying yourself first also includes investing in insurance. Life is full of uncertainties and investing in Liability, Home, Renters, Auto, Health or Life insurance today, could prevent you from losing everything in the future.

 

 

 

 

Nakali Consulting, Inc

Natalie Brutto 
1485 Bayshore Blvd. #110 
San Francisco, CA 94124
Ph: 415-505-1590
Fax : 415-874-9282
natalie@nakaliconsulting.net 

 

Family Child Care

Budget, Cash Flow and Financial Projections

 

Income

 

Business Income
Private pay parents
Subsidy payments
Food program
Evening/weekend care

Outside income
Part-time job
Spouse
Rental income
Retirement/SSI
Other

 

Expenses

 

Business expenses

Rent/Mortgage
Utilities, Phone/ Internet
Food

Payroll

Supplies and Materials
Liability Insurance
Marketing
Training and Conferences 

 

Personal expenses
** Pay yourself first! 

Car –car payments,

gas and insurance
Food
Childcare /Education
Medical
Credit Card/Loan Payments

Personal Costs – clothing, gym, and salon appoints, etc.
Other – Be Sure to Allow for Children’s Activities, Special Events & Holidays

 

Enrollment in family child care is constantly going up and down.  To ensure that you will be able to cover expenses if a child leaves without notice, I recommend that providers try to budget for one child less than they anticipate enrolling. 

 

 

 ** “A phrase commonly used in personal finance and retirement planning literature that means to automatically route your specified savings contribution from each paycheck at the time it is received.  Because the savings contributions are

automatically routed from each paycheck to your investment account, this process is said to be "paying yourself first", or before you begin paying your monthly living expenses and making discretionary purchases.”  --INVESTOPEDIA.COM

 

 

Some interesting Business Articles

 The Four Pillars of Financial Security

 

 Too Small to Fail

 

Establishing Rates

 

One of the most important, and perhaps the most difficult, processes a provider will need to complete is establishing her rates.  Most providers anguish over the question, “How much should I charge" The answer to that question is individual and different for every provider. The answer is NOT what the provider down the street is charging.  The answer is NOT what the subsidy agencies will pay.  And the answer is definitely NOT a different arbitrary fee for each individual family.  To come up with the answer to this question, a provider must ask his or herself the following questions and then use the information to come up with a rate that is right for that individual provider.


* How much do I need to charge in order to cover my expenses?

* What services am I offering that will be covered by this fee? 

* Are parents willing to pay more for higher quality care?
* How much can parents afford to pay?
* Are there any subsidies or programs, like the Child Care Food Program, I can    participate in to help cover the cost of care so I that can offer a scholarship to parents that can’t afford to pay what I need to charge?

Many providers worry that parents will question the justification for charging the rates they do. In fact, I would hope that parents do question a provider’s rates. Parents have the responsibility of ensuring that they are paying for quality care for their children, and it is the provider’s responsibility to ensure them that they are. If a provider believes in the value of her profession and is able to articulate to parents the value and the quality of the services she provides, parents will be confident that they are getting their money’s worth. 

 

It is necessary to periodically increase rates to keep up with the increased cost of providing quality care, and to continue to cover all business, and often, personal expenses.   It is NOT necessary for providers to apologize for increasing their rates.  All businesses need to do this; and child care IS most definitely a business.  Parents themselves usually receive a cost of living increase every year, so why should a provider feel guilty about implementing an increase in rates that will keep her business viable and allow her to continue to provide high quality child care??

 

When increasing rates, inform parents in writing AT LEAST 30 days in advance of the increase.  Some providers prefer to increase their rates annually, often at the beginning of the calendar year, or at the start of a new school year.  Some providers raise rates for all families currently enrolled, and some charge the increased rate to new enrolling families, but leave current families at the old rate.  It is up to the individual provider to know which method works best for his or her business.  The important thing is to take the action.  I will say it again, If a provider believes in the value of her profession and is able to articulate to parents the value and the quality of the services she provides, parents will be confident that they are getting their money’s worth.