| The three most important words in the home | | | | Fiscal Policies |
| daycare industry would be PLAN, PLAN, and | | | | This includes, determining when the staff is to be |
| PLAN. But yet most home daycares that open | | | | paid (weekly, biweekly, and monthly), late fee |
| their doors fail to do this. | | | | payment policies. Will you bill parents on a weekly |
| If your business is to succeed, you'll need a sound | | | | or monthly basis? There may be other policies |
| budget. | | | | that you will think of, so write them down and |
| You will need a plan that provides a realistic | | | | include them as part of the child care contract. |
| projection of actual estimated expenses and | | | | Audits |
| income. | | | | An audit also provides you with an accurate |
| Preparing both a start-up budget and an operating | | | | financial statement and recommendations to |
| budget will tell you what you will spend, now and | | | | improve your financial management. |
| in the future, and where the money will come | | | | Many funding sources require a financial statement |
| from for starting and running your home daycare. | | | | or audit as a condition of future grants or |
| Most important, these budgets will indicate | | | | contracts. You should, therefore, budget for an |
| whether your projected income will meet your | | | | audit or look for an accountant who will do it for |
| expenses. | | | | little or no charge. Contact your local accounting |
| Some budget plans you will have to put together | | | | association for accountants who can help you. |
| include: | | | | Also, to ensure sound fiscal management of your |
| Start-up Budget | | | | center, contact an accountant or an accounting |
| Operating Budget | | | | firm to help you set up your books. This help will |
| Monthly Operating Expenses | | | | be very useful. |
| Balancing Income and Expenses | | | | |