Family child care homes that have good administrative and business practices have more stability and are able to provide the environment, equipment and materials needed to support children's safety, healthy development and learning.

When systems are in place to support sound financial operations, recordkeeping, risk management and planning, family child care programs operate smoothly and avoid problems and crises that could threaten their quality or disrupt operations. Providers increase their financial stability, improve cash flow and are able to set aside funds to tide them over in emergencies when they implement practices to keep their programs at full enrollment, oversee income and expenses and get all the tax benefits available to them as home-based business owners.

Program quality also rests on the skills and knowledge of all of the adults who provide care. A high quality program that employs assistants or alternates has personnel practices that attract, retain and develop reliable employees who can provide child and family interactions that promote positive child outcomes.

There are a number of administrative and management self-assessments specific to early childhood programs. They include the Business Administration Scale (BAS) and the self-study for National Association for Family Child Care Accreditation (NAFCC).

Family child care business owners can use management self-assessment tools to evaluate their management practices, recognize strengths, identify areas that need improvement, and create concrete plans to enhance management systems. Self-assessments also provide a benchmark to measure progress and change over time.