ABSTRACT
This chapter describes the issue of financial management of an early childhood setting. Early Childhood Education and Care (ECEC) managers are responsible for providing a quality service to children, parents and families; the ability to do this is firmly linked to sound financial management. The chapter examines the key aspects of good financial management, and discusses the various steps necessary to ensure that early childhood education and care managers address financial management effectively. Sound financial management involves five key elements: Operational planning, creating a realistic budget, monitoring income and expenditure to align them with the budget, knowing when to make necessary adjustments. Effective financial management is an ongoing process featuring cycles of good management habits that are fundamental to maintaining a sustainable business. A manager can always seek the advice of an accountant or a financial consultant independently.
