First Considerations in Starting a Family Child Care Busine…

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Monthly Expenses Review the expenses in your annual budget and separate out the income by the month in which you expect to pay those expenses. For regular occurring operating expenses like food and supplies you can simply take your annual budget and divide it by 12 months and enter this number into your cash flow worksheet for each month. Do not forget to include your own salary. If you expect to have changes in your income over the course of the year, such as changes in enrollment in your program, be sure to adjust the related expenses accordingly. For example if you expect lower enrollment in the summer you can also expect your food cost to also be lower. For irregularly occurring expenses, such as quarterly tax payments or maintenance cost, enter those costs in the months they will be paid. See the example below and take note of how large planned maintenance costs affect you cash flow.

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