Nurseries and their accounts

[mrsbucketxx]

i am often told that they may little to no profit, yet on the other hand charge 40 quid a day per child.

more than most peoples mortgages or salaries.

i have never a break down of what goes in and out and what profits are made. its tough to believe that they are hard done by when there are few places available and charge so much

aibu to think that you cannot moan about this without evidence to back it up.

Here - have a .

thank you no tea to go with it

I dont know about nurseries specifically but there are many costs to businesses, to name a few rent/mortgage, business rates, water, electric, gas, employee and public liability insurance, staff costs.

Ultimately people can moan about whatever they want... Lots of people moan about their finances we don't ask for a breakdown of their income and expenditure.

They are also a business not a charity.

Well even on the minimum wage of 6.31, with on costs (employers NI tax etc.) the hourly rate for staff would be 7.57. Let's say you have 10 FT staff on a 9 hour day the wage bill alone would be 3406.50 per week, so £177138 per year for wages, then rent, utilities, insurance, food, health and safety, staff training/recruitment your probably looking at overheads of at least 250k per year - and I've been very minimal in my staffing estimate.

I don't know

40 per day, say 8 hours, that is (counts on fingers) £5 per hour

Staff salaries, Staff training, premises expenses like utilities, insurances, resources, food, cleaning etc etc.

on balance yabu

Assuming a 1:3 ratio means £120 per day to cover a member of staff, building overheads, toys and materials, food (if provided), tax, insurance. Then there are there is the admin, training etc.

Doesn't sound like a bad deal to me. You can get copies of accounts from companies house if you want to do some investigation.

yeah but you need to pay Daltons and business for sale say its up to a 30% profit that's great for any business these days

I don't understand your most recent post

wages......equipment.....lease.....staff training.......admin....the list is endless.

Do you think they should look after your child for free then? Why would they give you a breakdown? I don't really understand what you are getting at.

try being a CM . With only 3 little ones allowed each it's almost impossible to make a decent amount unless you do 12 hour days ( which I do!)

They're a business, why would they share with you their profits/accounts.

YABU

Plus......if you moan to someone you are skint do you then show them your bank statement to prove it.

Seriously!

Staffing costs are a large part of it and dictated by minimum wage at least. The ratio for nursery children is 1:3, as someone already mentioned.

Then the list could go:

Food (including baby formula)
Nappies (my daughter's nursery used to provide them)
Equipment
Electricity
Gas
Maintenance and repairs
Telephone
Cleaning
Water
Business overheads such as loans, local taxes and rates
Insurance (they can't operate without it)
Administration.

I am sure there is more.

Nursery fees are a large amount to fork out when you have young children, but a good one can never be cheap and a full breakdown on a daily basis (being what you seem to want) would be impossible.

If they are setup as business they want to maximise profits. Surely that is obvious?

On the other hand, private schools can cost double that (£80/day, albeit billed termly), for a shorter day. And they are registered charities with published accounts.

I don't really see the point of your post?

all childcare seems a lot to pay, but not a lot to charge.

my dds went to various childcare options that ranged up to around £120 pw each at various points. now £240 is a huge amount to pay, but it only broke down to £3 per hour per child. i was never really sure how the nursery kept going, i concluded that the owners must have owned the building outright.

To add to the list above

Registration fees
Training
Printer ink / stationery
Craft resources
Batteries
New toys
Loo roll
Wipes
Decoration / upkeep of premises

I have a good friend with an accountant husband who specialises in nurseries and says that they absolutely rake. it .in. So much so in fact, he wants to quit accounting and them to open their own nursery together. Friend is a cm so not completely unrealistic.

The ratio is only 1:3 for under 1's. The nurseries my children have been to usually go up to age 4.

At my DD's nursery they have 1 staff member for 8 children (in the room for 2 & 3 year olds). If the staff member is a graduate, I think it can be 1:16.

Also, many nurseries have trainee staff, or teenagers who receive a lower minimum wage because of their age.

OP, I agree with you, I think they must be very profitable businesses. A childminder at home is probably in a very different situation though.