1. Have efficient & compliant software.
Utilise a registered and cloud-based Child Care Subsidy System (CCSS) and Inclusion Support Management System(ISMS), and a cloud – based accounting to assist with accurate keeping record.
Software suggestions:
- Qikkids/Xplor (CCSS and ISMS)
- Kidsoft (CCSS and ISMS)
- Xero (accounting)
2. Maintain accurate and accessible records for CCS and ISMS payments.
Ensure all records comply with the Child Care Provider Handbook. Such records include enrolments, attendance and absence records, invoices and receipts for child care fees, and Statements of Entitlement.
3. Manage reports and retrieve sessions of care and absences.
Session reports must be submitted within the required time to ensure compliance with Family Tax Law. The submission and retrieval of sessions of care allows the Commonwealth to correctly calculate and allocate to the account for each child any subsidies that are relevant for care provided
4. Implement effective debt management and recovery processes to help improve your cash flow.
- Consider an upfront bond/deposit payment from families prior to attendance and ensure terms of payment and notice periods are signed and acknowledged by parents/guardians prior to attendance.
- Utilise the direct debit systems within the CCSS software.
- Reconcile the debtor ledger with the general ledger each month end inclusive of any CCS debt recovery from the Commonwealth.
5. Maintain healthy cash flow and have a working budget
- A healthy and positive cashflow is essential to enable you to pay wages, creditors and taxes on time. A cash flow projection assists you to see how the business uses or spends cash.
- Establish a cashflow forecast framework specific to your business. This framework will enable a forecast of future cash and what is needed to achieve revenue goals.
- A working budget allows for actuals vs. budgeted income and expenditure analysis and the opportunity to correct budget variances.
6. Pay all taxes on time to avoid interest charges and penalties.
- Lodge Business and Instalment Activity Statements (BAS and IAS) by due date to simplify ATO compliance.
- Report and manage tax and superannuation using the government online business portal.
7. Outsource to a specialist Childcare Accounts Bookkeeper
- Outsourcing frees up the time you would spend on CCS administration and compliance, allowing you more time to focus on delivering quality care for the children.
- Specialist support ensures you are kept up to date with current CCS legislation and regulations, stay on track with spending and debt management, and have access to real time advice regarding utilisation and financial decisions
