Childcare
Multiple revenue streams, strict staff ratios, and parent payments that don't always arrive on time. Your books need to keep up with the chaos.
The Industry
You opened a daycare because you care about children and families. But every day you spend more time on spreadsheets and payment tracking than you ever expected. Tuition from 40 families hitting your account on different days of the month. State subsidy payments arriving weeks after you provided the care. Food program reimbursements that require documentation for every meal served. The money comes from five different directions and lands at five different times.
Then there’s the staffing math. Michigan licensing requires specific staff-to-child ratios and those ratios drive your biggest expense. One infant room needs more teachers per child than a room full of four-year-olds. Payroll gets complicated fast when you have lead teachers, assistants, floaters, and part-time help all at different rates. Add in required training hours, background check renewals, and turnover that seems constant in this industry. Labor costs can run 60% or more of revenue. If you don’t track it properly, you won’t know if you’re profitable until it’s too late.
Who This Covers
Who This Covers
Daycare centers, preschools, in-home childcare providers, early learning programs, before and after school care. Any childcare operation in Metro Detroit managing parent payments, state subsidies, or food program reimbursements.
What Makes It Complex
What Makes It Complex
Revenue from multiple sources with different payment timing. Tuition that varies by age group and schedule. State CDC subsidy billing and reconciliation. CACFP food program tracking. Payroll for staff at different rates and varying hours. Licensing fees, insurance, training requirements, and compliance costs that add up quietly.
What We Handle
Parent payments need tracking by family so you know who paid, who is late, and who owes a balance. State subsidy reimbursements from the CDC program need reconciliation against the care you actually provided. Did the payment match your attendance records? Are you missing reimbursement for any children? Food program claims require meal counts and documentation that tie back to actual reimbursements received. We set up systems that track each revenue stream separately so you can see exactly where the money comes from and spot problems early.
Payroll in childcare is not simple. Teachers, aides, and support staff at different hourly rates. Hours that vary week to week based on enrollment and coverage needs. Overtime that creeps in when someone calls out sick. We handle payroll processing so your staff gets paid correctly and on time. Tax withholdings and deposits happen automatically. You stop spending your evenings calculating hours and hoping the math is right.
Revenue Tracking and Reconciliation
Revenue Tracking and Reconciliation
Tuition payments tracked by family with aging reports showing outstanding balances. State subsidy reconciliation matching CDC payments to your attendance records. CACFP reimbursement tracking tied to meal documentation. Monthly reports showing revenue by source so you understand where the money actually comes from.
Payroll and Expense Management
Payroll and Expense Management
Weekly or bi-weekly payroll for staff at varying rates and hours. Overtime calculated correctly. Tax deposits handled automatically. Expense tracking for supplies, food, licensing fees, insurance, and training. Clear visibility into labor costs as a percentage of revenue by classroom or age group.
What Goes Wrong
Subsidy payments don’t always match what you expected. A child’s eligibility changed mid-month. Attendance records didn’t get submitted correctly. The state processed the claim differently than you calculated. Without reconciliation, these discrepancies go unnoticed. You provided the care but didn’t receive full payment and never caught it. Over a year, those missed payments add up to thousands of dollars left on the table. Parent payments create similar problems. Families fall behind slowly. A week late becomes two weeks, then a month. Without aging reports, you don’t realize how much is outstanding until someone owes you six weeks of tuition.
Cash flow becomes a guessing game when you can’t predict when money will arrive. Tuition is due the first of the month but half the families pay late. Subsidy payments show up two to four weeks after you submit claims. Payroll is due Friday regardless. Directors end up floating the business on personal credit cards or skipping their own paycheck to make sure staff gets paid. You might be profitable on paper but constantly short on cash because the timing never lines up.
Missing Money You Earned
Missing Money You Earned
Subsidy payments that don’t match attendance records going unnoticed. Parent balances that grow slowly because nobody sends statements. CACFP reimbursements that came in lower than expected without anyone checking why. Revenue you earned but never collected because tracking systems don’t exist.
Cash Flow Surprises
Cash Flow Surprises
Payroll due on Friday but subsidy payment won’t arrive until next week. Parent tuition running two weeks behind. Scrambling to cover expenses that were predictable but not planned for. Making decisions based on bank balance instead of actual financial position.
What Changes
Every revenue stream gets tracked separately. You know exactly how much came from tuition, how much from subsidies, and how much from the food program. Subsidy payments get reconciled to your attendance records so discrepancies surface immediately. Parent accounts show current balances and payment history. When someone falls behind, you know it right away instead of discovering it two months later. You stop losing money you already earned.
Payroll runs without eating your weekend. Staff gets paid correctly every time. You see labor costs clearly and can make informed decisions about staffing and scheduling. Cash flow becomes predictable because you understand the timing of each revenue source. You can plan for slow periods and build reserves for the months when enrollment dips. Most importantly, you get time back. Time to focus on the children, the families, and the reason you started this business in the first place.
Clear Financial Picture
Clear Financial Picture
Revenue tracked by source with monthly reports showing actual performance. Subsidy reconciliation catching underpayments early. Parent balance tracking with aging reports. Understanding of true profitability by classroom and age group. Data to support decisions about tuition rates and enrollment.
Time Back for What Matters
Time Back for What Matters
Payroll handled without your involvement every pay period. Books closed monthly without a pile of receipts to sort through. Tax obligations tracked and paid on schedule. Evenings and weekends back for your family or for rest. Focus on running a great childcare program instead of chasing numbers.
Metro Detroit's Small Business Bookkeeper
The Next Step:
A Short Conversation
Tell us about your business and your current bookkeeping situation. We'll listen, answer your questions, and give you a clear quote.
