Business planning and finance

As a committee you are responsible and liable for the smooth running of the childcare business. Please read the points below for some guidance.

• Forecasting - Financial forecasting tells whether the setting is headed in the right direction, estimating the amount of revenue and income that will be achieved in the future, and comparing it to the expenditure. This can be achieved by looking at your portal to calculate your income.
• Budgeting setting - Creates a baseline to compare actual results to determine how the results vary from the expected performance. It is essential to keep track of money coming in and out of your accounts. The best way to achieve this is by setting a budget and monitoring it closely.
• Fundraising - It is vital to increase your income and you will need to think creatively about how to achieve this. You may for example, join your local school or community in their planned events. Some committees will have a sub group whose sole purpose is to raise additional funds for the committee. This group is not part of the committee so therefore have no voting rights; they do not need to attend committee meetings as they will have a nominated committee member to feedback to.
• Lease/rental agreements - It is important to understand your arrangements and seek support where necessary.
• Staffing expenditure policy - It is wise to have a staffing expenditure policy in place to be clear about staff reimbursement. For example, payment for training, overtime approved and agreed in advance and spends.
• Business and marketing plans - These plans need to be considered and support tools are in development.
• Finance - Committees must send an annual return to the Charity Commission or report their income and spending every year: www.gov.uk/guidance/prepare-a-charity-annual-return.
• Portal access - Your manager will have access to the Early Years Portal however, it is beneficial for the treasurer to also gain access to be able to monitor your income.