During a time of austerity, when an increasing number of parents may be struggling to pay fees and local authorities are tightening their belts, it is more important than ever that nursery groups manage their finances efficiently.
This means ensuring meticulous day-to-day management of expenditure while also adhering to a financial overview that is designed to ensure sustainability - no easy matter in the current climate, when all costs are soaring.
What has not changed in recent years is that staff wages remain the highest cost, but the problem is exacerbated by the fact that nurseries are currently reluctant to raise fees.
Sarah Steel, managing director at the Old Station Nursery, believes that for large groups, staff costs can be around 58 per cent of revenue, but among smaller groups, or those with buildings that can be used less efficiently, it could be 70 per cent or higher.
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