BUSINESS SERVICES FOR CHILD CARE PROVIDERS · 29/09/2017 · Services providers said they are...

SHARED SERVICES BUSINESS SERVICES FOR CHILD CARE PROVIDERS

Child Care Aware of Washington

September 29, 2017

The Athena Group, LLC 101 Capitol Way North, Suite 300

Olympia, WA 98501 (360)754-1954

www.athenaplace.com

TABLE OF CONTENTS

Summary..................................................................................................................................................... 1

Business Practices Services ................................................................................................................. 6

Human Resources Services .................................................................................................................. 9

Financial Services ................................................................................................................................. 12

Conclusion ............................................................................................................................................... 17

Shared Services The Athena Group Child Care Aware of Washington September 29, 2017 | Page 1

SUMMARY

Background

In June of 2017, Child Care Aware of Washington (CCA of WA) and the Washington Association of Educational Service Districts partnered to learn more about the back-office and other business service needs of child care providers. This effort is funded by the Department of Early Learning, which wanted to explore ways to leverage funding and services to improve the quality of child care and increase the capacity of providers through a shared service model. Ultimately, the goal is to reduce the burden of running a business for family and center child care providers by offering back-office business support services, enabling providers to focus more attention on providing high-quality care to the children and families they service.

CCA of WA’s portion of the project included two efforts to collect information on child care providers’ back-office service needs: a survey of all child care providers in the state, and focus groups with providers in two communities. Based on the results of the survey and focus groups, CCA of WA will conduct pilot projects in two communities in Washington.

The survey and focus groups explored child care providers’ experience and needs for three categories of back-office services: business practices, human resources, and financial services. Examples of each kind of service are included in Exhibit 1.

Exhibit 1

Back-office services Business Practices Services Human Resources Financial Services

Training on running a business Marketing Cost modeling Setting tuition rates

Payroll administration Benefits administration Background checks State and federal reporting Employment separation issues

Billing Purchasing Insurance support

Summary of results

How are providers currently meeting their business needs?

Most providers indicated that they are managing their business needs with in-house staff, and that often the director carries out this work. The large majority of survey respondents are not paying for external business practices services, human resource, or financial services, as shown in Exhibit 2. Additionally, only about 30 percent of respondents said that they use a Child Care Management System, which could help with administration, invoicing, and accounting.

“My background is in early childhood education. That's what I'm good at. I'm not good at doing taxes and keeping track of tuition payments. I want to spend time preparing curriculum, educating our children, and supporting families.” - Survey respondent


Exhibit 2

Most providers are not paying for external business services Are you currently paying for business services?

Source: Survey of child care providers, 2017.

Are providers interested in receiving CCA of WA help with business services?

The survey and focus group results show that most providers are interested in potentially using business services offered by CCA of WA, and they are interested in all categories of services to some extent. Survey respondents indicated that 55 percent are likely or very likely to use business practices services, 49 percent are likely to use human resources, and 44 percent are likely to use financial services, as shown in Exhibit 3.

Exhibit 3

Providers are most interested in business practices services If CCA of WA offered support services today, how likely would you be to try them?


In the focus groups, we gathered additional detail about the types of services providers say they need. As shown in the following table, some needs are common to all types child care providers, such as calculating operational costs, finding quality staff, increasing purchasing power, and help with tuition invoicing a payment collection. Large and small providers, and both centers and family child care providers, expressed a desire to receive business support services from someone who has specific knowledge of the child care business, rather than from general service providers.

Other types of needs are specific to certain types of providers. For example, new providers expressed a need for support and information on starting a child care business; larger providers wanted more in-depth human resources support; and smaller providers could use support with bookkeeping and accounting.

59%

75%

70%

33%

16%

17%

9%

9%

13%

Financial Services

Human Resources

Business Practices

No Yes Not sure/don't know

19%

26%

30%

25%

23%

25%

18%

17%

18%

12%

10%

6%

19%

17%

13%

8%

8%

8%

Financial Services

Human Resources

Business Practices

Very Likely Likely Neutral Unlikely Very Unlikely Not sure/don't know


Exhibit 4

Services providers said they are interested in receiving, by provider type Service type All types of providers Some types of providers

Business practices ✓ Calculating operational costs ✓ New providers: How to start a child care business

Human resources ✓ Hiring and staffing – how to find good employees

✓ Keeping up-to-date with human resources laws and requirements

✓ Larger providers: Help with human resources policies and procedures

Financial services ✓ Increasing purchasing power for supplies and health and business insurance

✓ Getting families and other payers to pay on time

✓ Handling administrative issues related to caring for children receiving Working Connections subsidy

✓ Planning for retirement

✓ Smaller providers: Support with bookkeeping and accounting

Providers also expressed a need for more of a support system given the new state and local requirements going into effect for their profession (such as education and training requirements, sick leave, Early Achievers, etc.). In particular, they said they need help understanding new laws and regulations and how to implement them.

What are provider preferences for how the services would be delivered?

Providers in the focus groups had different ideas about the method of support they prefer:

• In some instances, they want individualized customized services. For example, some family child care providers would like personalized assistance setting up a system for tracking expenses and receipts.

• Other providers would like training, either in person or online. Some providers prefer online training because it fits with their schedule; but others want trainings to be interactive.

• We also heard about the value of peer mentoring, networking, and assistance from experienced child care providers who know the ins and outs of the child care business.

• We also heard that some providers would like a resource directory that would include items such as lists of qualified service providers, training resources, and tools such as best practice guides, sample policies and interview questions. As one center director stated, “It would also be helpful if CCA could put together a network of service providers, brokers, etc. that work specifically with small businesses and non-profits and to offer an annual training or meet and greet for providers to become familiar with their services.”

Generally, providers would like to receive services from CCA of WA because they trust the organization and would like to receive services from people who know early childhood education. However, some providers did have some hesitation to using CCA of WA because of their negative perception of Early Achievers.


Provider business challenges and services When asked about what was frustrating about the business side of their program, providers responding to the survey and attending the focus groups listed a variety of challenges. Themes include:

Finance challenges:

• Billing and collecting payments can be challenging, especially when parents are slow to pay. Also, billing software is available, but providers don’t always know which one is best.

• Managing Working Connections subsidies was cited as a challenge because of low subsidy rates, difficulties with subsidy authorizations and related paperwork, and inconsistent subsidy payments and delays in payment.

• Making ends meet was mentioned by many providers, who described not having enough income even as the costs of the child care business continue to rise. As one provider wrote, “The lack of funds is the most frustrating part of the field as a whole.” Another wrote about the challenge of, “Finding ways to make ends meet each month and still provide quality care/consistency for all children and training/tools for staff.”

• Managing finances was cited as a challenge, especially by small providers. They described difficulties managing and tracking expenses, understanding their spending and operational costs, and managing cash flow.

• Taxes – Paying and understanding taxes are frustrations for some providers. Some small providers experience challenges with tracking expenses and organizing receipts in order to be organized for taxes.

• Financial management processes can be challenging for many providers, including budgeting, accounting, cost allocation, and tracking expenses. Some wrote about not having enough staff or support to be able to manage this.

Other challenges:

• Staffing – It can be hard for providers to find qualified staff and to manage staff issues, such as scheduling, ensuring adequate staffing coverage, inconsistent attendance, and employee turnover. Providers also shared that they cannot afford to pay staff a high enough wage to recruit and retain quality employees.

• Not enough time – Many providers wrote about not having enough time, especially for paperwork and administrative matters. As one wrote, a frustration is, “Never having enough time to get all the necessary paperwork completed.”

• Paperwork – Many providers wrote about there was too much paperwork. One wrote, “There is so much paperwork and hoops that you have jump through.”

• Regulations and requirements – Other providers described the challenge of meeting and keeping up with regulations and requirements.

“As an Executive Director, finding the time to manage every aspect of our administration, including all payroll/employee benefit services, taxes, billing and subsidy program management for our clientele, facility management, and overall budgeting/financial planning. - Focus group participant


A theme from the focus groups was that providers feel like they have to go to too many different sources to find the business resources and assistance they need. Some providers have received business-related training, but it has been one-time only training. They usually get information by word-of-mouth and other informal means. Some know tools and training are probably available, but don’t know how to find them. They feel they would greatly benefit from a more coordinated system that connects them with the services and resources they need.

Methodology

The survey was distributed to all child care providers participating in Early Achievers, both centers and family child care programs, and 485 providers responded to the questions about back-office services. Many of the child care providers who responded to the survey are small, with about half having two or fewer lead teachers, as shown in Exhibit 5.

Exhibit 5

Half of respondents have two or fewer lead teachers Number of lead teachers


We conducted focus groups in Kent and Spokane, with a total of 15 providers. Four family child care providers attended and one child care center director (who provided written comments) participated in the Kent group. In Spokane, five people attended a group for family child care providers and another five attended a group for child care center directors.

5%

7%

13%

24%

51%

12 or higher

9 to 11

6 to 8

3 to 5

2 or less


BUSINESS PRACTICES SERVICES

Business practice services include activities like training on running a business, marketing, and cost modeling for staffing and setting rates. Most providers participating in the survey and focus groups indicated they would be interested in using a CCA of WA business practices service if available. Focus group attendees expressed a particular interest in training and support for new providers who are just starting their business, and for cost modeling. While some providers wanted training and support in marketing, others felt like they were adequately able to fill their spots through word-of-mouth marketing.

How interested are providers in trying a CCA of WA business practices service?

As shown in Exhibit 6, thirty percent of survey respondents said they were very likely to try CCA of WA business practices services, if offered, and another 25 percent said they were likely to try those services. About 20 percent said they were unlikely or very unlikely to try those services.

Exhibit 6

Over half are likely or very likely to try CCA of WA business practices services If CCA of WA offered support services today, how likely would you be to try them?


A major reason why providers said they would try the services is they want to learn about new ideas and potential opportunities for improving their current practices. Those who said they were unlikely to try the services had a variety of reasons, including their corporate ownership or because they are part of a school district or college. Others have been in business for a long time and feel confident in their abilities.

As shown in Exhibit 7, providers who are likely to use CCA of WA business practices services tend to be smaller than those unlikely to use CCA of WA services. Over half of them (54 percent) have two or fewer lead teachers, as compared to 40 percent of providers unlikely to use CCA of WA services.

Exhibit 7

Providers who are likely to use CCA of WA business practices services tend to be smaller Number of lead teachers


30% 25% 18% 6% 13% 8%


40%

54%

26%

26%

15%

11%

18%

9%

Unlikely to use

Likely to use

2 or less 3 to 5 6 to 8 9 or higher


In what areas do providers most want help?

In the focus groups, we explored in more detail the types of services providers are interested in receiving and where they need the most help:

• Starting a business – New providers would benefit from resources and training on starting a business. We heard this both from one provider who is just starting her family child care business, as well as from more experienced providers reflecting on earlier in their career. The provider who is just starting her business said this would be “extremely beneficial” as she has felt like she was completely on her own in figuring out how to get started.

• Cost modeling includes estimating the number of staff they can afford or what tuition rates should be based on operational costs – Some center directors were interested in receiving support or tools to enable them to do this cost modeling. We heard that some providers attended a class that had this information; however, we also heard that many child care providers don’t know how to do this. Our discussion groups reflected the varying degrees of comfort that directors have in analyzing and understanding costs – some have limited ability to do so, and others are much more comfortable with this kind of analysis.

• Marketing and assistance with maintaining full enrollment – Most attendees responded that they receive their business through word of mouth. While many found this to be adequate, some child care providers, generally family child care providers, would like assistance and tools to help them more effectively market their business.

How are providers currently meeting their business practices service needs?

Currently, 17 percent of survey respondents are currently paying for a business practice service, as shown in Exhibit 8. A slightly higher percent (22 percent) of providers likely to use CCA of WA services currently pay for services.

Exhibit 8

Less than 20% of survey respondents are currently paying for business practices services Are you currently paying for business practices services?


How important are various business practice services to providers?

When asked about the importance of various business practices, the highest percent of survey respondents said maintaining full enrollment was extremely important (55 percent), as shown in Exhibit 9. The next most important business practice was issues around subsidy enrollment (42 percent said it was extremely important).

For each category of services, the providers who indicated interest in using CCA of WA services were more likely to say the service was extremely important that those who said they were not interested. For example, 64 percent said maintaining full enrollment was extremely important, compared to 47 percent of those unlikely to use CCA of WA. At least half of those likely to use CCA

17% 70% 13%

Yes No Not sure/don't know


of WA services also said all the other services were extremely important to them: issues around subsidy enrollment, cost modeling, and training on business practices.

Exhibit 9

Most important business practice is to maintain full enrollment How important do you consider the following aspects of business practices to be to your business?


34%

38%

42%

55%

45%

41%

40%

33%

Training on business practices

Cost modeling for staffing & setting rates/tuition

Issues around subsidy enrollment

Maintaining full enrollment

Extremely important Important Not important N/A


HUMAN RESOURCES SERVICES

Human resource services include activities such as administering payroll, benefits, background checks, state and federal reporting, and employee hiring and separation processes. About half of survey respondents said they were likely or very likely to try a CCA of WA human resources service. In our focus groups, providers were most interested in having access to human resources support that could help them keep track of employment-related legal requirements; provide examples of interview questions, policies, and procedures; and could help them navigate challenging human resources issues, such as employee evaluations and separation. Additionally, they would appreciate information on how to identify good employees in their hiring process.

How interested are providers in trying a CCA of WA human resource service?

Half of all respondents said they were very likely (26 percent) or likely (23 percent) to try human resources services offered by CCA of WA, as shown in Exhibit 10. About one-quarter said they were either unlikely or very unlikely to try the service.

Exhibit 10

Half are likely or very likely to try CCA of WA human resources services If CCA of WA offered support services today, how likely would you be to try them?


Providers said they would be likely to use this service because they are either currently struggling in this area or they know there are opportunities for them to improve. Others said they would like assistance because their budget and time are so tight.

Those who said they were unlikely to try the services had a variety of reasons, including not needing the service because they do not have many staff. Others either already have systems in place, or the services are provided by the larger organization they are a part of, whether it is a corporation, school district, or college.

Provider program size does not seem to affect whether a program is or is not likely to use CCA of WA human resource services. As shown in Exhibit 11, providers who are likely to use these services are similarly sized as those who said they were unlikely to use them.

Exhibit 11

Providers who are likely to use CCA of WA human resource services tend to be smaller Number of lead teachers


26% 23% 17% 10% 17% 8%


47%

50%

25%

27%

15%

13%

12%

10%

Unlikely to use

Likely to use



In what areas do providers need the most help?

In our focus groups, we asked for additional information about what human resources services child care providers are interested in and where they need the most help. We heard two main themes:

A wide range of providers, both family child care providers and center directors, told us they need help keeping up with human resources laws and requirements, such as changing sick leave requirements. One family child care provider told us that she didn’t realize that she was required to offer sick leave until an employee requested it after being sick. In a focus group discussion with center directors, one director proposed a shared human resources office that providers could use to get information on human resources issues, such as policies, employee evaluations, and employee separation issues. Others also said they would like resources for better understanding human resources issues and laws.

Additionally, both family child care providers and center directors struggle with hiring. Many told us that it was difficult to find good employees, and some providers said they could use help knowing how to find good people. Example of services they would find helpful include:

• Interview techniques and sample questions that effectively assess how well the applicant will do on the job, and whether they are a good fit.

• How to do working interviews. • Best practice guidelines for hiring child care staff.

How are providers currently meeting their human resources needs?

Three quarters (75 percent) of survey respondent reported that they are not currently paying for human resources services, and indicated that their director or internal staff carry out these responsibilities. Only 16 percent of providers reported paying for a human resources service, as shown in Exhibit 12. This percent is slightly lower than the 18 percent of respondents likely to use CCA of WA services who currently pay for human resources services.

Exhibit 12

16% of providers likely to use CCA of WA are currently paying for human resources services Are you currently paying for human resources services?


For forty percent of responding providers, the director or owner does the payroll, as shown in Exhibit 13. Twenty percent reported that payroll is done by in-house accounting or human resources. Then another 20 percent use an external or contracted service, whether a payroll service (14 percent), or accounting or human resources (6 percent).

Providers likely to use CCA of WA are slightly more likely to have the director or owner doing payroll (44 percent) than providers unlikely to use CCA of WA (34 percent). Instead those providers unlikely to use CCA of WA are more likely to use in-house accounting or human resources (30 percent, compared to 15 percent of those likely to use CCA of WA).

16% 75% 9%



Exhibit 13

The director or owner does payroll for almost half of providers Who does your payroll?


How important are various human resource services to providers?

Background checks are the human resources area that the highest percent of providers said was extremely important (55 percent), followed by state and federal reporting (45 percent) and payroll (44 percent).

Exhibit 14

Most important human resources practice is background checks How important do you consider the following aspects of human resources to be to your business?


The percent of those who responded that each category is extremely important is higher for those providers likely to use CCA of WA services. For example, the percent of those responding that background checks are extremely important was 63 for just those providers likely to use CCA of WA services, but only 49 percent for those unlikely to use CCA of WA. Over half of respondents likely to use CCA of WA services also said that state and federal reporting (56 percent) and payroll (55 percent) are very important.

19%

6%

14%

20%

40%

Other

External/contracted accounting or HR service

External/contracted payroll service

In-house accounting or human resources

Director or owner

26%

34%

44%

45%

55%

38%

38%

29%

37%

31%

14%

9%

11%

6%

5%

22%

19%

16%

12%

10%

Employment separation issues

Benefits

Payroll

State & federal reporting

Background checks

Extremely important Important Not important N/A


FINANCIAL SERVICES

Financial services can include activities such as billing, purchasing, managing cash flow, and insurance support. Although less than half of survey respondents stated that they would be likely to use a CCA of WA financial service, this was the area where focus group respondents identified the most needs. They told us they need help with administrative issues related to caring for children receiving Working Connections subsidy, increasing their purchasing power, and planning for retirement. Smaller providers also told us they could use help with accounting and bookkeeping, and managing cash flow in general. Statewide, about one-third of providers responding to the survey said they are currently paying for financial services.

How interested are providers in trying a CCA of WA financial service?

Financial services is the area where the smallest percentage of survey respondents said they were interested in receiving a CCA of WA service; however, a substantial percent of them are still interested. A total of 44 percent still said they were either very likely (19 percent) or likely (25 percent) to try a CCA of WA service. Thirty percent said they were unlikely or very unlikely to try the service.

Exhibit 15

Less than half are likely or very likely to try CCA of WA financial services If CCA of WA offered support services today, how likely would you be to try them?


Those who said they were likely to use these services said they need help and support in these areas. Several wrote about wanting support so they can spend time on other things instead. As one wrote, “…as a director I get stuck in these things instead of helping staff with training and resources.” As with the other areas, those who said they were unlikely to try the services had a variety of reasons including already having systems in place or receiving these services through their corporation, school district, or college.

As shown in Exhibit 16, providers who are likely to use CCA of WA financial services tend to be smaller than those unlikely to use CCA of WA services. Over half of them have two or fewer lead teachers, as compared to 41 percent of providers unlikely to use CCA of WA services.

Exhibit 16

Providers who are likely to use CCA of WA financial services tend to be smaller Number of lead teachers


19% 25% 18% 12% 19% 8%


41%

55%

26%

27%

17%

11%

15%

6%

Unlikely to use

Likely to use



In what areas do providers need the most help?

In the focus groups, we explored the types of financial services providers are interested in receiving and where they need the most help. Although financial services is the area that the fewest survey respondents said they were likely to use CCA of WA, it is the area where focus group providers identified the most needs:

• Administrative issues related to Working Connections subsidy – We heard from both family child care providers and child care centers about how they would like support with administrative challenges related to caring for children receiving Working Connections subsidy, including tracking authorizations and payments. One provider even told us that she consistently underbills DSHS because it is less hassle and she has a lower risk of dealing with the stress and risk of overpayments, but the result is, “I always lose money.” Additionally, some providers caring for a high percentage of children receiving subsidy mentioned the cash flow challenges they face, especially because subsidy payments and children’s attendance can vary. They would benefit from assistance managing this. Some providers also struggled with the financial cost of keeping a slot open for a family, but then that family doesn’t show up as planned, which can be financial difficult for a child care provider.

• Purchasing – We also heard from a range of providers that they would like to be able to increase their purchasing power for supplies as well as health and business insurance, such as through discounts or negotiated prices.

• Retirement planning – Several providers said they would like help planning for retirement, whether it is a basic savings account or a retirement plan. One provider said, “There is a child care provider near me who is still working at 70 because she doesn’t have money to retire. I don’t want that to be me. How do I avoid it?”

• Bookkeeping and accounting – Some family child care providers talked about needing help with bookkeeping and accounting, including tracking and managing their expenses and preparing for taxes since they don’t have staff who handle this. For example, one provider told us about seeing her total income for the year, but then wondering where it all went. As she said, “It is hard to keep track of expenses.” Others were concerned about their ability to track expenses for filing taxes or in response to program requirements, such as the USDA child food program.

How are providers currently meeting their financial services needs?

The survey asked several questions about how providers currently manage their financial services. As shown in Exhibit 17, one-third use QuickBooks and another 16 percent use a spreadsheet or Excel. Those who answered “other” had a variety of replies including using a business or corporate office, having their own system (such as paper systems), having no system, or not knowing.

Providers likely to use CCA of WA services are more likely to use QuickBooks (43 percent) compared to providers unlikely to use CCA of WA services (28 percent). However, those providers unlikely to use CCA of WA services are more likely to use another accounting software (15 percent, compared to 7 percent of likely providers).


Exhibit 17

One-third of survey respondents use QuickBooks What accounting program are you currently using?


Providers vary widely in how often they reconcile their bank accounts, although the highest percent reconcile their accounts monthly, as shown in Exhibit 18. These responses are very close to the responses of those likely to use CCA of WA services (34 percent of providers likely to use CCA of WA reconcile their accounts monthly).

Exhibit 18

Just over one-third reconcile their bank accounts monthly How often do you reconcile your bank accounts?


Altogether, one-third of respondents said they currently pay for financial services, as shown in Exhibit 19. The percent of those likely to use CCA of WA currently paying for services is higher (40 percent) and the percent of those unlikely to use CCA of WA is lower (25 percent).

Exhibit 19

One-third of providers currently pay for financial services Are you currently paying for financial services?


As shown in Exhibit 20, half of providers budget less than $100 a month on accounting and payroll services. The others vary widely in what they spend. These responses are very similar to those of

31%

9%

10%

16%

34%

Other

Bookkeeping service

Other accounting software

Spreadsheet/Excel

QuickBooks

14%

12%

10%

5%

35%

16%

8%

Other

Never

Infrequently or Sporadically

Quarterly

Monthly

Weekly

Daily

33% 59% 9%



providers likely to use CCA of WA services. Most of those who selected “other” said they either don’t know or that this service is handled by the owner, school district, or college.

Exhibit 20

Half of providers budget less than $100 for monthly accounting and payroll services How much do you budget for monthly accounting and/or payroll services?


When asked what they look for in a bookkeeping service, quality of service was rated the highest (39 percent said it is most important to them). Other important considerations are knowledge and price.

Exhibit 21

For those who have looked for a bookkeeping service, quality is most important factor What is most important to you when you are looking for a bookkeeping service?


Providers who are likely to use CCA of WA services are more likely to have looked for a bookkeeping service than those unlikely to use CCA of WA services. While 28 percent of those likely to use CCA of WA said they had never looked for a bookkeeping service, over half (56 percent) of unlikely providers said the same.

How important are various financial services to providers?

The financial service that the most child care providers said was extremely important is business tax returns (57 percent), as shown in Exhibit 22. The next most important service was invoicing for state and private pay (51 percent).

As with the other business practices and human resources, more providers who are likely to use CCA of WA financial services said each are was important than providers unlikely to use those services. For example, 65 percent of those likely to use CCA of WA services said business tax

22%

8%

2%

5%

3%

11%

49%

Other

More than $501

$401-$500

$301-$400

$201-$300

$101-$200

$0-$100

42%

9%

13%

24%

25%

39%

I have never looked for a bookkeeping service

Other

Availability

Price

Knowledge

Quality of service


returns are extremely important, compared to only 45 percent of those unlikely to use CCA of WA services.

The other services that more than half of those likely to use CCA of WA services said are extremely important are invoicing for state and private pay (59 percent) and making sure bookkeeping is accurate (54 percent).

Exhibit 22

Most important financial service is business tax returns How important do you consider the following aspects of financial services to be to your business?


32%

35%

35%

38%

41%

43%

45%

51%

57%

39%

36%

36%

43%

34%

39%

31%

31%

29%

14%

14%

12%

8%

10%

8%

11%

7%

3%

16%

14%

17%

12%

15%

10%

13%

11%

11%

Prepared financial statementswith comparisons

Cash flow forecasting

Collections of overdue invoices

Day-to-day bookkeeping

Account reconciliations(including bank reconciliations)

Budgeting

Someone to make sure yourbookkeeping is accurate

Invoicing: state & private pay

Business tax returns

Extremely Important Important Not Important N/A


CONCLUSION

Child care providers experience a range of challenges in managing their businesses, and many of them need help with their business needs. Some business needs are common to all types of child care providers, such as calculating operational costs, finding good staff, increasing purchasing power, getting families and other payers to pay on time; meeting administrative requirements related to caring for children receiving subsidy; and planning for retirement. Other types of needs were specific to certain types of providers. New providers specifically expressed a need for support and information on starting a child care business; larger providers want more in-depth human resources support and assistance with working with employees; and smaller providers could use support with bookkeeping and accounting.

In addition to business challenges, providers shared that they are struggling to keep up with regulatory changes, whether it is changes in the laws and regulations related to early childhood education, human resources and employment law, or other business requirements. They are feeling overwhelmed by the changes and would like help keeping track of new and changing requirements.

The survey and focus group results indicate that most providers are interested in CCA of WA business services, and that there is a varying amount of interest across all categories of services. Generally, providers would like to receive services from CCA of WA because they trust the organization, and also would appreciate receiving services from people who are very familiar with the early childhood education business. However, some providers had some hesitation to using CCA of WA because of their negative perception of Early Achievers, or because they were concerned that voluntary support services could become required regulatory services.

Providers feel like they need to go to many different sources to find the business resources and assistance they need, and that many of the resources they find are not specific to the child care field. They usually get information by word of mouth and other informal means, and know there are probably tools and training available to them, but don’t know how to find them.

Providers had differing opinions of how they would like to receive or access these business services. Some want individualized customized services, while other providers would like training. Additionally, some providers would like a resource directory or a menu of best practices and examples they can use, such as sample policies or interview questions. Providers also really value peer mentoring and assistance from other child care providers.

Overall, providers feel they would benefit greatly from having a more streamlined, centralized way of accessing business support services and resources. They would also greatly appreciate having services, tools, and resources that are specific to the child care business.

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