Many found that managing a preschool involves a lot of thing on children and education only. It will be mainly on developing curriculum and modules with choices of best teaching method and practices.
Yet, many did not realized the importance of other part in managing an education business entity which is cash management.
Well, in any business organization there will be different team which has different task. In a usual setting of an education business the team involves are, education, operation and finance.
Education team mainly focus on education and quality control area while the operation involves in human resource and all related to operation. In many cases, finance and accounting activities become part of the operational team function. This will differ from a company to another based on their management style.
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In a small and unpopular preschool setting, cash management become more important for the organization to grow.
This is what usually happens:
+ cash we managed personally by the owner
+ all expenses will be separated and used in cash
+ income of the school does not flow through the bank account
The impact:
+ the company which manages the business remain small with only one transaction per month in the bank account
+ the amount of petty cash is very high which lead to ‘untraced expenses’ being unrecorded
+ cash management become poor as it is not being separated with the business owner’s personal expenses and the company’s expenses
When one talks about expanding his education business, he needs to walk through the process and system of cash management and handling to move on.
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