What is Financial Sustainability?
Educational institutions have been hit hard by the COVID-19 pandemic. In the wake of the pandemic, many institutions such as high schools, colleges and universities are all finding it difficult to cope with providing continuous learning methods to students without there arising a halt or gap in their educational careers. One other sector of institutions that has been hit hard and is often not recognized are preschools and daycare centers.
In the wake of the pandemic, financial management for daycare centers and preschools has become increasingly difficult. Due to poor financial sustainability, most preschools and centers remain closed around the world, with some opening under decreased capacities, in line with governmental regulations. All of this is leading to have a huge regressive impact on the children’s’ growth as well as on the financial model on which these institutions are not only built but also dependent.
In the context of preschool finance management, financial sustainability is the ability of preschools to maintain a financial capacity over a long period of time. This is primarily kept intact with the help of preschools ensuring steady cash flow, regardless of the external environment. In this article, we examine ways to help succeed childcare business, thereby help in ensuring better preschool financial management.
5 Ways to Manage Your Preschool’s Finance and Ensure Long-Term Sustainability
It has become imperative that robust Financial Management Policy for preschools are in place. Preschools need to calculate their operating budget in order to compare their expenses against their revenue generation models. Since preschools and daycare centers have had to revamp their business models due to the pandemic, their operating budgets have been severely impacted. Most parents have pulled their children out of daycare centers and preschools have been operating on an online format, these factors have led to a worrisome situation for preschool business owners.
Therefore, what are the ways in which you can manage your preschool’s finance and ensure long-term financial sustainability?
- Bring Out Your Cash Flow Calculator
Calculate your expenses and revenues on a monthly basis and compare your accounts to get a better understanding of what’s working for your business. Accordingly, slash budgets wherever not required.
- Seek the Payment Protection Program
Childcare providers are flocking towards the Payment Protection Program, a loan provided by the federal government to help business owners in this space cover the cost of utilities and payroll for a short period of time. Create an ideal pitch with previous results and your business revenues and how you are currently facing challenges and how your center can help parents of the children in the neighbourhood.
- Have a Financial Management Policy for Preschool
Having a proper Financial Management Policy for your preschool business can do wonders for the current, and any future contingency situations. A policy can help you identify how funds should be best utilised.
- Maintain Revenues and Create New Revenue Streams
Identify ways in which you can continue to charge tuition fees from students and create new programs such as summer school programs or other virtual sessions where you can give out different learning options to children. Have a policy where you can accept tuition from parents who are unable to afford the full fee currently, in instalments.
Needless to say, reduce expenses wherever possible, especially expenses that involve physical presence like paying mortgage on the property, loan payments, payments on utilities, etc.
Above all, maintain a positive mindset! After all, as a business owner, the one thing you should know is that you’re not affected alone at this time. What most business owners are turning towards during this tough period, is alternative ways of doing business.
As a preschool business owner, you need to find new and innovative ways to take your business digital. Use preschool management apps like Illumine to put you back into the mix.
How Illumine Can Help During This Time
Illumine is the answer to all your problems! Illumine is a daycare and preschool management software that helps you build partnerships with parents, create interactive and immersive learning experiences for students, as well as help in seamless digital and financial administration for your business. With Illumine, you can easily set up your preschool finance management system.
What Are Some Financial Management Features that Illumine Has?
Boasting extensive features, Illumine is an extremely useful app when it comes to financial management.
The app helps your preschool business:
Making it easier for parents to make tuition payments online, the app truly provides a hassle-free experience to parents. It sends notifications, tracks their child’s expenses online, as well as pay fees on time.
- Automates receipts, bills and invoices
With the help of the daycare software, Illumine enables online tracking of all payments. It also helps in creating flexible plans for payment of fees, generating custom invoices and reports.
- Records employee and staff check-ins, check-outs and leaves
One of the best features of the app is that it allows for seamless staff management, preparing reports on employee attendance, and linking this to salary payments.
- Assists in an easier admission process
The app helps you convert leads and inquiries, as well as aids in the overall admission process by sending automatic emails and follow-ups to prospective parents.
In addition to the above financial management features that Illumine has, it also possesses one of the best preschool attendance app systems where you can record a child’s attendance digitally, as well as the attendance of the staff and employees.
Illumine for Preschool Financial Management and Childcare Businesses
Illumine is used by over 300 preschools and daycare centers around the world to facilitate easier school operations, communication between teachers and parents, and create a better virtual learning environment for children. It truly is an answer to a cry for help for preschool business owners that require better preschool finance management.
The best part? To try Illumine, you don’t even need a credit card! The first 30 days are free of cost. Sign up for an Illumine trial today, and experience childcare management of the future.