Childcare & Education
Bookkeeping for daycares and learning centers where revenue has a ceiling and every dollar of labor is tied to state-mandated ratios.
The Industry
Childcare has a ceiling. You can’t add more kids than the building holds or the license allows. Staff-to-child ratios are set by Ohio law. One caregiver per four infants. One per seven toddlers. Break the ratio and you risk losing your license. Follow it and labor becomes your largest fixed cost regardless of how many kids show up that day.
Most businesses grow by adding customers. Childcare grows by adding square footage, staff, and licensing capacity. There’s no squeezing in one more enrollment. Full is full. That makes financial management different than almost any other business. When revenue has a hard cap, every expense matters more.
Who This Covers
Who This Covers
Daycare centers, preschools, in-home childcare, after-school programs, learning centers, tutoring services, early intervention programs. Any business caring for or educating children on a tuition or fee basis.
What Makes It Different
What Makes It Different
Revenue capped by licensed capacity. Labor costs locked to mandated ratios. Tuition collected from parents alongside state subsidy payments. Payroll for teachers, aides, and floaters with different schedules and rates. Ohio PFCC reimbursements that arrive on their own timeline.
What We Handle
Monthly bookkeeping with tuition revenue tracked by family and subsidy payments tracked separately. You see what’s been paid, what’s outstanding, and what’s sitting in the state system waiting to arrive. When a parent is three weeks behind, it shows up before it becomes three months behind.
Payroll for staff at multiple rates, multiple schedules, and varying hours. Lead teachers, assistants, floaters, part-time help. All processed correctly with Ohio withholding and BWC handled. Books that show you what the center actually made after all the labor and overhead, not just what tuition was supposed to come in.
Tuition and Subsidy Tracking
Tuition and Subsidy Tracking
Parent payments and PFCC reimbursements tracked separately. Outstanding balances flagged. You know exactly who owes what and which subsidy payments are still pending.
Payroll
Payroll
Teachers, aides, substitutes, admin staff. Multiple pay rates, variable hours, different schedules. Processed accurately every pay period with Ohio compliance handled.
Common Problems
The gap between what you’re owed and what’s in the bank is where childcare centers get squeezed. Tuition was due Monday. Some parents paid. Some didn’t. The PFCC reimbursement for last month hasn’t arrived yet. Payroll is due Friday regardless. You’re covering staff costs on money that hasn’t shown up.
The other problem is visibility. You know enrollment is full and tuition rates seem reasonable, but there’s never much left at the end of the month. Without tracking labor costs against revenue by classroom or age group, you can’t see where the margin is thin or which programs are actually covering their costs.
Collection Gaps
Collection Gaps
Tuition due dates and actual payment dates don’t match. Subsidies run weeks behind. Payroll and rent don’t wait. Cash flow stress becomes constant without a system to track what’s coming and when.
Labor Cost Blindness
Labor Cost Blindness
Staff costs eat 60% to 70% of revenue in childcare. If you’re not tracking labor against enrollment by room, you can’t see when ratios are costing more than they need to or where scheduling adjustments would help.
What Changes
You know where the money is. Which families have paid, which haven’t, which subsidy payments are pending. When cash is tight, you know why and when it will improve. When a family falls behind, you catch it early instead of discovering it months later.
You see the real cost of each classroom. Infant care is more expensive to staff than preschool. The numbers show whether your rates reflect that. You can make decisions about tuition, staffing, and capacity based on what the business actually needs, not what feels right.
Cash Flow Visibility
Cash Flow Visibility
Receivables tracked by family and by source. Subsidy payments reconciled when they arrive. You know what’s outstanding and can plan around the gaps instead of being surprised by them.
Pricing Confidence
Pricing Confidence
Know your actual cost per child by age group including labor, overhead, and supplies. Set rates that cover costs and leave margin. Stop underpricing programs that are expensive to run.
Northwest Ohio’s Trusted Bookkeeping Partner
The Next Step:
A 15-Minute Discovery Call
Let's talk about your current bookkeeping situation. We'll assess your needs, outline a plan of action, and give you a clear quote.
