As we continue our topic this month on Daycare Budgeting, childcare money management, and all things Profit I want us to focus our attention this week on having an actual budgeting system.
Budgeting in itself can be an overwhelming tasks, but daycare budgeting and budgeting for your business can be even more overwhelming if you don't have systems in place to make it easier.
I'm just going to be very real with you here. You can not have a successful business, and not budget! You have to know how much you have coming in, what's going out, and most importantly you need to know if you are profiting each month. Because as I always say, if you are not profiting in your childcare business, you are simply running an expensive hobby!
So the question I want to ask you, is "Do you have a Budgeting System?" To help you answer this question, I am going to show you what a budgeting system looks like.
Before we jump into that, let's talk about what a system really is.
According to google definitions, the definition of the word System is:
So when we talk about having a budgeting system, this means that you have a step by step process of what you do when you budget. It's that simple.
Now, let's get into the three things that will make up your Budgeting System.
1). Accounting Software:
Any business should have software that helps them account for revenue, expenses, payroll, taxes and all the things it takes to run a successful company. Having an accounting software really takes out all of the guess work out of accuracy. And when we are talking about money, you definitely want to make sure that your numbers are accurate. Inaccurate numbers can really cause your childcare business to fail in no time at all. Accounting software also allows for you to have data, reports, family accounts, and helps you keep up with past financial history. I don't know how many times that having my accounting software when I ran Ashley's Angels saved me thousand of dollars. And we all know how some families love to try and get over on you, if they can. Having accounting software that allows you to quickly pull up their account, run a payment history report and email it to them during a payment dispute can save you so much!
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2). An Excel Budgeting Workbook:
So why should you have an excel budgeting workbook, when you have your accounting software? Well because your accounting software is not going to be totally customize for a childcare business. Having an excel budgeting workbook, allows you to completely customize your budgeting needs, and acts as an extra "pair of eyes" so to speak. So for me, my excel workbook allowed me to forecast, create scenarios, look at percentages of revenues, and also calculate how many children I currently had enrolled and how many I needed to profit.
Using excel, allows for automation because the formulas will do the work for you, and you don't have to worry about calculated something wrong. With an excel Budgeting Workbook, the sky's the limit as to how much you can customize it, to fit your program needs.
Currently here is what my excel budgeting workbook looks like which is what I offered to Owners and Directors who are enrolled in my Childcare Business Budgeting Made Easy Course.
3). A Budgeting Schedule:
If you are going to be great at money and ensuring profits in your childcare business, you have to set time aside to do that everyday. Nothing from nothing equals nothing right? Don't expect to be successful at anything if you are not spending time in that area. A budgeting schedule basically is going to set up you up to have specific days and times that you will work on specific budgeting task. And once you have those task set up, the next part if being discipline to complete those tasks daily!
I have had the privilege to talk to many childcare Owners and Directors since launching Childcare Success Tools in 2016, and I was actually kind of shock to learn that most of them don't really budget, and if they do, they don't have an actual system in place. So I hope that this blog post helps you to get a system in place if you are just getting started, and if you have been in business for years, I hope this helps you to rethink about what you are currently doing to see if there are any improvements you can make to your current system!
This is the month of PROFIT here at CST! And Profit is something you have to Plan for! Budgeting is your plan to Profit! So get out there, roll your sleeves up, and get to budgeting!
What's your thoughts on Budgeting? Do you have a budgeting system for ensuring that your childcare program is profiting? Be sure to leave your comments below, and I will be sure to respond back!
Check out the other blog posts in this series: