A budget planning indicates whether a predicted revenue matches the planned expenses. Budgeting is a crucial phase in which the roadmap is established for the program year and program goals are achieved. It includes the financial mechanism for any company with good planning which should be performed annually or monthly with objective planning meetings and goals. The budget would thus allow an organisation to assess program viability and to make resolutions on the number of workers, the size and the ages to be served. In order to finance the programme, the budgets would also demonstrate the external financing needed. Therefore, I am tasked with the creation of a budget and fund development plan for an early development childhood Centre.
The early childhood Centre will serve pre-school children that are aged between 6 months to 6 years old. The program necessitates a fundamental shift in policy focus – from child care to early learning that is critical for human growth and development. It is crucial to note that learning is a process that must be carefully nurtured from an early age. The Centre will hence integrate early learning with the child care system. Additionally, the program goal is to ensure that early childhood education is student oriented with valuing respect for the individual as whole and respecting the language, gender, culture, and abilities. With the objectives of the program in mind, the program will strengthen its focus on the literary skills of the children and individual student achievement.
The program will incur some major cost in the budgeting therefore, it is critical to note some of the cost that will be expected. First, the cost will include the taxes expected to be paid to the government for running the facility. As a small business, the organization is obliged to file business income tax information with the respective federal and state agencies and paying other required taxes for an early childhood Centre. Hence taxes are a must for any budget for a child care business. Hence, the respective state revenue department has information about required state tax laws which ought to be followed to the latter. Moreover, the Internal Revenue Service (IRS) has the necessary information about which federal taxes apply to one’s business. Another major source of expense includes the wages of the staff mandated to run the organization. Due to the nature of child care being labor intensive, personnel cost will be one of the largest expense. Also, there are costs related to planning and the construction of the facility which include the Land, buildings, and equipment. The capital cost for the facility includes;
The cost of the property if the business is buying a land or abuilding
The infrastructure and construction costs which may include utility connections, labor and material costs and landscaping cost.
Fees of professional services for project manager, project planning and oversight which includes the engineers, architects and lawyers
Application and filling fees, the cost of site appraisal and survey and liability insurance.
There are many sources of revenue that can be used to fund the proposed project. First, one can apply for grants and loans to help get the business started. Commercial banks, Federal government, and credit unions are some of the common sources of loans for businesses. Notably, Loans requires one to pay interest on the amount that is borrowed. Major lenders require evidence of most additional sources of money to back up the loan request. On the other hand, Grants are given without an expectation of repayment from the business or organization. Hence Loans tend to be more common than grants for start-up funding of any proposed project. Other sources of finance include financial assets such as savings or investments.
Some of the additional sources of funding sources include State Loan Programs. Some states sponsor loan programs that can be commissioned to early care and education organizations. Besides direct loans, some states offer partial loan guarantees to private lenders or interest rate grants to diminish the cost of borrowing, thereby increasing the amount a nonprofit might be eligible to borrow from a private lender. Another source of funding may include State Tax-Exempt Bond Financing. The federal tax code offers a tax exemption on the interest earned on qualifying loans to nonprofit organizations or social development programs. These are known as tax-exempt bonds. The advantage of this kind of supporting is that the tax exemption ought to translate into a lower interest rate for the borrower.
Some of the foundations