Mastering Financial Management | McCormick Center for Early Childhood Leadership

Child care providers find themselves juggling numerous responsibilities that cover a wide span ranging from managing staff, to paying bills, to nurturing young minds. Amidst these demands, maintaining accurate financial records often becomes a daunting task. Child care providers, like many other business owners, generally tend to hate bookkeeping and paperwork, but it’s critically important to have it done and to have it done correctly.

Efficient financial management is one of the keys to success for early child care providers. Key business decisions start with having accurate and up-to-date financial information, which provides critical insight into your business and aids in decision-making.

More and more child care providers find themselves having to navigate accounting tasks independently, as rising costs force them to cut back on many tasks or items they could previously outsource. However, a correctly designed accounting system can aid in this transition and provide the skills necessary to confidently navigate the intricacies of financial management.

The McCormick Center’s upcoming virtual technology training, “Mastering Financial Management: QuickBooks Training for Child Care Providers,” will help child care providers overcome the fear of the financials that plague small business entrepreneurs. There is a saying, “What gets measured, gets managed,” and it is true that meticulous financial tracking can not only optimize operations but also assist with informed decision-making.

A well-structured setup in QuickBooks is crucial for effective financial management, and it can be adapted to meet the unique needs of childcare businesses. Learning to navigate QuickBooks effectively will allow you to use QuickBooks more efficiently to make critical management decisions and reduce outsourcing costs.

key elements of child care program financial management:

Income Transactions: Proper tracking and the categorization of income sources, such as tuition, fees, grants, food reimbursements, and extracurricular activities.
Expense Transactions: Efficient tracking of operational expenses, including rent, utilities, supplies, meals, reimbursements, transportation, and professional fees, as well as processing more complex transactions such as asset purchases, depreciations, bill and loan payments.
Banking Transactions: Accurate utilization of bank feeds to track bank and credit card transactions and monthly reconciliations to ensure accuracy between bank statements and QuickBooks records.
Report Creation: Generating reports essential for tax purposes, management decisions, budgeting, and forecasting.
Year-End Reports: Utilizing QuickBooks for year-end reporting requirements such as financial statements, child care expenses reports for families, and 1099 vendor payment reports.

“Mastering Financial Management: QuickBooks Training for Child Care Providers” will walk participants through how QuickBooks can be used for income transactions, expense transactions, banking tractions, report creations, and year-end reports. In addition, the session will explore strategies for optimizing workflows by automating recurring transactions and demonstrate how to integrate QuickBooks with other software and tools to enhance efficiency.

The May 17 session will also cover challenges encountered by QuickBooks users with insights into how to avoid common errors. Participants will be able to engage in a live Q&A session where they can ask specific questions and gain insight with fellow child care providers.

By adopting the practices outlined in the webinar, child care providers can streamline financial performance enabling them to focus their energies on nurturing the next generation.

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Examining the Role of Employer Benefits and Turnover in Center-based Child Care

By Robyn Kelton, M.A. • June 27, 2025

INTRODUCTION Turnover rates in child care are among the highest in education, with over 160,000 workforce openings predicted annually (Bassok et al., 2014; Doromal et al., 2022; Joughin, 2021; U.S. Bureau of Labor Statistics, 2025). While some turnover is expected and even necessary, the levels of turnover experienced in the field of early childhood education and care (ECEC) are not only alarmingly high but deeply problematic. In 2021, a national survey conducted by the National Association for the Education of Young Children found that over 80% of child care centers were experiencing a staffing shortage, with the majority of those programs reporting one-to-five open roles, but 15% reporting between six and 15 open roles (NAEYC, 2021). Staffing shortages result in lost revenue, financial uncertainty, and program instability, often forcing administrators to operate below capacity and/or under reduced hours (NAEYC, 2021; NAEYC, 2024; Zero to Three, 2024). Limited enrollment slots and classroom and program closures lead to increased waiting lists (Zero to Three, 2024; Carrazana, 2023). In turn, families are placed in a highly vulnerable position of needing to leave the workforce to stay home with their child or turn to potentially unsafe or unregulated child care. Moreover, increased turnover in classrooms interrupts continuity of care and disrupts the relationships built between children and their educators (Reidt-Parker, J., & Chainski, M. J. (2015). Research has begun to highlight some of the programmatic and personnel characteristics predictive of increased staff turnover in ECEC programs. Low wages are most commonly identified as a strong predictor of turnover (Amadon et al., 2023; Bryant et al., 2023; Fee, 2024; Guevara, 2022; Totenhagen et al., 2016). However, workforce advocates and some researchers have begun to expand conversations on compensation to explore the impact the profession’s general lack of benefits such as paid time off, access to health insurance, and retirement benefits has on retention (e.g., Amadon et al., 2023; Bryant et al., 2023; Fee, 2024; Lucas, 2023). While informative, this body of work has typically approached benefits as binary variables (i.e., have or do not have) rather than reflect the spectrum on which benefits are commonly offered (e.g., the number of days off, the percent of insurance covered by the employer, and levels of retirement matching funds). This Research Note aims to expand on previous work investigating the relationship between benefits and turnover by exploring the possibility of a more nuanced relationship between the variables to determine if the level of benefits offered impacts turnover rates. METHOD This study used data collected via formal Program Administration Scale, 3rd Edition (PAS-3) assessments conducted by Certified PAS-3 Assessors between 2023 and 2025. To become certified, PAS-3 assessors must first achieve reliability (a score of at least 86%) on a test conducted after four days of training on the tool. Next, they must conduct two PAS assessments within three months of reliability training. PAS-3 national anchors reviewed the completed assessments for consistency, accuracy, and completeness. The study analyzed data from 133 PAS-3 assessments collected during the certification process across 12 states, the District of Columbia, and the U.S. Mariana Islands. Measures Data for this study were collected using the PAS-3, a valid and reliable tool used to measure and improve Whole Leadership practices in center-based programs (Talan, Bella, Jorde Bloom, 2022). The PAS-3 includes 25 items, each composed of 2-5 indicator strands and scored on a 7-point Likert scale (1 = inadequate, 3 = minimal, 5 = good, and 7 = excellent). Item scores are averaged to determine a mean PAS-3 score. Of particular interest to this study is Item 5: Benefits. Item 5 measures employee access to health insurance and considers what percentage of the cost is paid by the employer, the total number of paid time off days within the first and fifth years of employment, access to a retirement plan, and the percentage at which the employer will match the employee’s contribution. Last, Item 5 explores provisions made to cover the costs of staff’s professional development. Non-applicable is allowed as a response for indicators related to health insurance and retirement if there are no full-time staff employed by the program. Sample Program enrollment ranged in size from four children to 285, with a mean enrollment of 65 and a median of 55. Total program staff for the sample ranged from two to 44 staff, with an average of just under 14 staff (13.93) and a standard deviation of 8.80. Table 1 below provides a detailed breakdown of staff by role and full-time and part-time status.