Accounting Expertise For Daycare Companies
Daycare is a vital service in today’s economy. Families in the Minneapolis/St. Paul region need reliable, high-quality daycare options that won’t break the bank. At the same time, daycare companies need to deliver great care, maintain staffing, and comply with regulations, all while maintaining profitability. Given the specifics of the daycare market this is no small task, and why it is vital to find the right accounting partner.
Daycare Accounting Challenges
Daycare companies are service businesses, and the cost of labor is the largest single expense that they face. With adult-to-child ratios governed by regulations and the tight labor market, many daycare centers find managing staffing and payroll expenses to be their number one concern. But there are other challenges that they must face as well.
- Depreciation and Amortization: Daycare centers make significant investments in equipment that provides children with the kind of stimulating environment they need for development. But none of that equipment lasts forever, and knowing how to correctly account for their useful lives and when and how to calculate depreciation and amortization is important to managing center finances.
- Budgeting and Cost Management: Because daycare companies operate on a variety of child and staff schedules, accurate and timely budgeting and cost management must be an ongoing priority.
- Enrollment and Pricing: Because of the connection between child enrollment, staffing regulatory requirements and the cost of providing care, determining how much to charge for services, and how to manage through fluctuations in enrollment must be a top priority for management.
Specialized Accounting For Day Care Facilities
In addition to the standard accounting concerns of most businesses, daycare providers face specific challenges that require a good understanding of the regulations and business factors they face. Some of the specific services that Haworth & Company assists day care providers with include:
- Accounting: Tracking the volume and variety of client accounts across multiple locations can be overwhelming for daycare providers who may have many different enrollment options for families. Our expert guidance and systems can simplify this task and help ensure accuracy.
- Tax: Many daycare providers are eligible to participate in government subsidy or grant programs. These options can be very beneficial for families in need of childcare, but can also make managing taxes a more complicated burden for the daycare provider. We can help.
- Payroll: Payroll represent the single largest cost faced by most daycare providers. The importance of ensuring accurate tracking and payment of this major expense can’t be overstated. We take that stress off your shoulders and empower your team with tools like Employer on the Go and HR on Demand.
- Consulting: Whether you need advice on how to manage your pricing and increase your profit margin, or whether it makes sense to invest in new equipment or open a new location, our Business Advisors are ready to help you.