Child Care Center and Development

Question: Identify at least three ways how a child care center could be financed and explain how each may impact the financial management plan of the business. Discuss, in terms of applying these general concepts to your child care site how financing and management plan may or may not help you as a director of a child care development center. Critically analyze how the cash flow tutorial and record keeping forms that you completed can benefit a center director. Answer: Introduction: The two articles have used as a reference for gaining the knowledge regarding the starting and development of childcare center. The first article taken show the ways in which a childcare center is marketed and promoted and bring out various ways in which a childcare business sold. The article provides with the ways in which the childcare center would be financed by preparing a proper financial packages and funding methods. In addition, the current approach of funding the childcare center is suffering from various flaws and one of the reasons is low level of financing. In order to establish the center, there is a need to analyze the current funding system and propose a reform of center financing to suit the starters. Discussion: The childcare center could be financed using a combination of financing mechanism, which would raise enough money for running a quality childcare center (Makowiecki et al., 2012). A business proposal is needed when starting a new business and it would display a comprehensive budget needed for the operation of the business. The three ways in which a childcare center could be financed is a) through federal funding and this would include subsidy program for the working poor families. This would help poor families to prepare for school and life. b) The private sources contribute more than 55% to the expenditures concerning childcare. So private expenditures sources is another way of raising fund and it has no legal limit on the amount borrowed and as compared to the commercial sources it is much flexible. c) Funds can also be accessed through financial institution (Moore Johnson, 2015) The management and financing plan is of great help to the directors in carrying out the day-to-day operation activities and it would provide the director with the estimated income and expenses and their realistic projection. This would help in allocating the funds properly and according to priority. Moreover, he would be able to source the income generation (Strandell, 2012). Cash flow tutorial would help the director in determining the financial condition of the business and it would be possible for him to make a prediction regarding the cash flow of the business in the long run. Whether the business needs adjust the service or price of the product can be depicted through cash flow. In addition, the record maintenance would enable the business to operate efficiently. It would help the director to deal with the tax related issues and fringe benefits from tax return and sound business decision is taken if there is a track of the stakeholders of the company or business(Bonoli, 2013). Here, one of the points in notion is that the directors need to make projections not just for the cash on books but also on the actual flow of cash. The difference between the actual and the estimated value also needs to be projected and the realistic parameter needs to be considered rather than the theoretical one. Another point is to be taken in mind by the director is that t he actual cost of execution needs to be projected than going to the revenue as per the book opportunities. Conclusion: After researching the two articles several recommendations is made regarding the financing of childcare center and it provides the directors with several strategies. The financing of the center needs the attention of the government and funding by them needs to be expanded. The modeling of the proposal should be done to raise the needed funds and this would help in estimating the revenue and costs, which would enable to offset the cost. Reference: Bonoli, G. (2013).The origins of active social policy: Labour market and childcare policies in a comparative perspective. OUP Oxford. Moore, Q., Johnson, A. (2015). Is there a need for more school-based health centers in low-income neighborhoods?.Health Policy Research newsletter,10(3). Strandell, H. (2012). Policies of early childhood education and care. InThe Modern Child and the Flexible Labour Market(pp. 222-240). Palgrave Macmillan UK. Taguma, M., Litjens, I., Makowiecki, K. (2012).Quality Matters in Early Childhood Education and Care: Finland. OECD Publishing. 2, rue Andre Pascal, F-75775 Paris Cedex 16, France.