Here you will find 3 vodcasts relating to financial management,
The first is an overview of financial management of your childcare business;
Voluntary managed childcare settings may also find this document on financial controls and procedures useful.
The second vodcast is on key financial documents and introduces the annual business forecast, monthly budget report, cash flow forecast, financial records, profit and loss statement and balance sheet;
The basic income and expenditure monitoring template referred to in the vodcast can be downloaded here.
The third and final vodcast on financial management relates to pricing your childcare service. We consider how to price your services, establish your pricing strategy and key things to consider to ensure your business will remain sustainable;
As an additional note, some types of childcare businesses which make profits are liable for Corporation Tax. This is a tax on their profits, not on their income, and it is calculated on the level of surplus showing in the annual accounts at the end of the businesses financial year. It is recommended that you seek professional financial advice in relation to your tax returns, corporation tax issues and all taxes related to your employer status as part of your normal financial year end procedures.
Despite the cost of living pressures, many families are missing out on financial help because they're unaware what they could be benefitting from.
Information on promoting the early years entitlements to parents and information to help with childcare costs can be found here.
In addition, Tax Free Childcare can be used to reduce the cost of any additional hours parents require, above those supported through the free early years entitlements for 2, 3 and 4 year olds.
- Registering for Tax Free Childcare can support providers achieve additional income by promoting this to families to utilise to take up provision but also reduce their childcare costs.
- Parents can use Tax Free Childcare to pay for Ofsted registered childcare with providers (including day nurseries, pre-schools, childminders, schools, breakfast, after school and holiday clubs) that are signed up with Tax Free Childcare, with the Government paying up to £2,000 per annum per child (aged 11 and under) and up to £4,000 up to 17 years of age if the child is disabled.
- Although not available to parents receiving Tax Credits, Universal Credit or Childcare Vouchers, Tax Free Childcare can support working families, including those who are self-employed, if they're working a minimum of 16 hours a week at the National Minimum Wage and less than £100k per year.
- More information on Tax Free Childcare for Childcare Providers can be found on the Childcare Choices website
The following webinar from Hempsall's provides more information on Tax Free Childcare for childcare providers;