Business Finance Homework Help

Seneca College Accounting in Early Childhood Centre Spreadsheet

Staff Pay Scale: Remember that you must staff your center and meet all requirements according to the regulations set out in the Childcare and Early Years Act(ensure you account for Supervisor, Cook, cleaning staff, part-time staff if needed to cover breaks etc). Create your own rates of pay for staff, as well as rates for child care – must be in line with present day rates (not necessarily equal to) in the area (reminder minimum wage is now $14.00/hour (Effective January 2018) and employers are responsible to pay EI, CPP etc. contributions as well) Consider whether your staff will have a benefit package which either they contribute to and/or employer contributes to). Wage Enhancement $2.00 per hour can be applied to wage but mock application must be made for this amount.
Expenses: List all expenses your center will incur on a monthly basis. e.g. Mortgage/Rent, Property Tax, Gas/Hydro/water, Garbage collection, Training, Inspections and Licensing fees, Snow Removal, Groceries, Supplies, Insurance, Payroll, New Equipment etc.
Income: Create a financial worksheet that will include monthly income (Childcare rates and subsidy amounts) and monthly expenses.
Profit or Loss: Use the information from your monthly income statement to determine if your centre will have an annual loss or gain of income. You must be as realistic as possible. Centers are not typically full all year long, parents take holidays and sometimes don’t pay their bill! 