PNL: Counting more than kids!
Revenue minus controllable costs
What is controllable contribution - the top line on your PNL?
This checklist provided by the facilities department reduces trip charges by consolidating work into a single monthly task list.
What is the handyman checklist?
When enrollment temporarily dips, this strategy helps optimize labor by combining classrooms who have capacity to fill.
What is collapsing or consolidating classrooms? (For Montessori, we would aim to do this at session starts ideally or in anticipation of back to school if we predict a shortfall.)
Enrollment divided by school capacity
What is Utilization?
This tool is there to control your operating expenses in a given week or month, based on budgeted percentages for controllable spend categories and your weekly or monthly revenue.
What is the Expense Tracker?
More than monthly swings, these financial periods are the most important timeframe to monitor and balance your PNL in order to hit your KPIs.
What is focusing on quarterly performance and balancing the PNL within each quarter?
Fiscal Year Quarters: April-June, July-September, October-December, January-March
A facility related cost that is over $500 (not including labor or other non-material charges) and extends the life of the asset or replaces the asset.
Before scheduling staff each week, leaders should review this to ensure the right number of teachers are planned for the number of children enrolled.
What is the projected enrollment or attendance?
Including these two pieces of information in the Service Channel ticket system ensures vendors arrive fully prepared with the necessary tools and materials, reducing delays, avoiding additional trip charges, and saving both time and money.
What is uploading photographs and key details - such as model numbers for equipment - in the ticket itself?
This tool is there to determine your optimal labor hours based on enrollment weekly or monthly. You can also account for staff hours for parent events or teacher meetings using this tool.
What is the Labor Scheduling Tool
These two key variable expense categories on the PNL should decrease proportionally with revenue—when fewer dollars come in, these should go down too.
What are labor and food costs? (But really all areas -General and Administrative and Operating Costs should go down.)
This staffing strategy involves prioritizing full classrooms over partially filled ones to align with ratio requirements and reduce unnecessary labor costs.
What is Labor Optimization.
Filling classrooms to capacity first rather than several half full classrooms which require more staff. Look at your ratios and match them with group sizes as you fill classes to reach maximum optimization.
This software platform drives your optimal labor each day/week based on child sign in and out (actual attendance).
What is Kaymbu
While cost-cutting helps, this top-line strategy can often be the most effective way to cover overspending and improve your profit margins.
What is Revenue or Enrollment
This tool on the BI will help you keep your eye on overtime costs and repeat offenders each week.
What is the Labor Flash - Hours and Wage Trends Tab?
This number represents revenue/tuition collected minus employee or family discounts and should be the number used for your Expense Tracker.
What is Net Tuition?
Bringing these programs in house to be taught by staff at school can significantly boost your revenue in a year.
What are enrichment/extra curricular activities. (Ask us how!)
If this key expense category isn’t aligned with current enrollment, you may be overstaffed and overspending.
What are labor costs relative to revenue?
The five Performance metrics that dictate school leader bonuses each quarter.
What are NPS Scores (Q1/Q3) / Net Tuition to Budget (Q2/Q4), Controllable Contribution, Utilization, Voluntary Experienced Teacher Turnover, Visit to Registration Conversion Rate?
This tool will show how much enrollment is needed to meet budget, meet or beat prior year, and the number needed to reach capacity.
What is the Classroom Planner/Forecaster?
Budget is important and it reflects typical seasonality at a school in terms of enrollment, however, dropping below this data point (included in the budget and in the classroom forecaster) is typically a red flag.
What is Prior Year?
Reviewing these in UKG midweek allows school leaders to adjust schedules proactively, preventing unnecessary overtime and controlling labor costs.
What is staff hours/timecards in UKG?
According to the Labor BI, this percentage range represents the ideal proportion of labor costs relative to gross tuition revenue.
What is 35-45% - labor dollars should equal between 35 and 45% of your gross tuition dollars? **Your percentage is found in the Labor Flash - Hours and Wage Trends tab.
This timely action in the CRM process is most closely linked to higher conversion rates when enrolling new families.
What is contacting new leads within 24 hours?
This tool is important to review before each billing cycle to ensure no children are left out of billing, billed at the correct rate, or to ensure no families are double billed and classroom schedules are up to date for forecasting purposes.
What is the Classroom Planner - Upcoming Schedule Changes and Exception Details tabs?