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. That’s why it’s vital to find the right accounting partner—especially one that specializes in providing accounting services for daycare businesses in Minneapolis.
Daycare Accounting Challenges
Daycare companies are service businesses, and the cost of labor is their largest single expense. With adult-to-child ratios governed by regulations and a tight labor market, managing staffing and payroll expenses is often the number one concern for many daycare centers. However, they also face other significant challenges.
- Depreciation and Amortization: Daycare centers invest heavily in equipment that creates a stimulating environment for children. Yet, this equipment doesn’t last forever. Knowing how to correctly account for their useful lives, and when and how to calculate depreciation and amortization, is crucial for managing center finances.
- Budgeting and Cost Management: Daycare companies operate on various child and staff schedules. Therefore, accurate and timely budgeting and cost management must remain an ongoing priority.
- Enrollment and Pricing: Child enrollment directly impacts staffing and regulatory requirements. Consequently, determining how much to charge for services, and managing 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 thorough understanding of regulations and business factors. Haworth & Company assists daycare providers with the following services:
- Accounting: Tracking client accounts across multiple locations can overwhelm daycare providers. Many offer different enrollment options for families. Our expert guidance and systems simplify this task, ensuring accuracy.
- Tax: Many daycare providers are eligible for government subsidies or grant programs. These benefits are valuable for families needing childcare but complicate tax management for the provider. We offer solutions to navigate this complexity.
- Payroll: Payroll is the largest cost for most daycare providers. Accurate tracking and payment of this expense are vital. We alleviate this burden by providing tools like Employer on the Go and HR on Demand.
- Consulting: Whether you need advice on pricing, increasing your profit margin, investing in new equipment, or opening a new location, our Business Advisors are here to help.
