The introduction to the chapter emphasizes that there are several reasons to keep accurate financial records, including the legal requirement of filing taxes, the needs of the administrators, and the ways in which it helps keep the business on track. Too methods of accounting are discusses: accrual vs. cash basis. An accrual system counts income and expense when the money is committed. A cash system records income and expense when the money come in or is spent. Both systems will add up to the same totals in the end, but the methods are difference. Small businesses are advised to use a cash basis system because it is simply easier to keep track of. Accrual systems are the standard for larger businesses. The chapter goes on to list what documents are necessary to keep and which can be discarded and how to use these documents in keeping financial records. The basic documents are a check register and bank statements. Using just these two items, the chapter gives a seven-step instruction guide to reconciling a bank statement. Reconciling your bank statement is the cornerstone of keeping accurate financial records. An income register, billing records, payroll records, and a balance sheet are other important financial documents discussed. The importance of each and examples of what the spreadsheets look like are included in the chapter. Chapter 6 also discusses how to keep financial records and discusses manual systems, computer spreadsheets and financial accounting software. The chart of accounts is also discussed, as this information defines how the financial information gathered will be organized.
Chapter 7 — the Decision-Making Process
This chapter discusses the role of the administrator in making decisions.
Na administrator is often called upon to make decisions in a variety of areas — capacity, ratios, hiring, ordering supplies, tuition rates, etc. The chapter begins by discussing the administrators role. The fist bit of advice is to not to try to make all the decisions for everyone at the center. This does not enable leadership in your staff and you will get nothing else done. The goal, instead, is to make the fewest decisions yourself and to let your staff make most of the day-to-day decisions. They are in the classroom and know what is needed when and where. The decisions of the administrator are those that affect the organization as a whole. This does not mean the staff is not involved. Chapter seven promotes inclusive decision making, where others are included in the decision making process, as a teaching team. In this model, the entire teaching team is involved in making decisions about how the classroom is to be run. If agreement does not come, however, the head teacher may need to assign tasks instead of letting the team flounder. Inclusive decision making has a profound effect on the way your staff runs. While the “best” results are not always achieved, the community of staff is healthier because they were all involved in the process and had their input heard and considered. The chapter cites examples of what inclusive decision making looks like in hiring a teacher, budgeting, performance reviews, moving children up in age groups, etc. The conclusion of the chapter is that, although it may be difficult for an administrator to give up the decision making process, the.