A Guide to Streamline Payment & Billing at Daycare

A simple and straightforward payment and billing process is crucial to success. It will not only simplify billing but will also streamline the tax filing process at the end of the year.

Furthermore, standardizing your billing procedures will free up more time to spend with the kids, staff, and parents at your childcare center. Read on to learn how to streamline payment and billing at your daycare.

Create Billing & Payment Policies

Create transparent billing and payment policies for inclusion in the enrollment packet. You should specify how you plan to bill and what kinds of fees will be included in the invoice. You must set your prices to yield a profit after deducting all of your necessary operational costs.

You should also consider the possibility of unexpected circumstances not covered by regular tuition when establishing standards, such as late payment penalties or installment payments. Having a policy that addresses school closures is also important. It will help keep your business afloat in times of regulatory uncertainty. For example, you can collect a portion of the tuition in the event of a sudden closure.

Pick a Payment Method

Consider what will work best for your business and the families you cater to in terms of payment alternatives to ensure on-time payments. Here are different payment methods you can consider.

• Bank Deposits: With this method, parents can make payments directly to your daycare center. However, tracking payments to families may be difficult.

• Online Payments: The safest method of making contactless payments is through an internet service. Payment apps can streamline the payment process for daycare providers by allowing users to pay with a credit card or debit card without leaving the app. However, you may have to pay the tiny proportion usually associated with these services if you value your safety and convenience.

• Cash Payments: Some daycares may also allow parents to pay in cash at the daycare center. However, it can be hard to keep track of payments, and you will not have a digital payment trail. Therefore, cash payments are generally avoided.

Employ the Right Daycare Forms

Keeping accurate payment records is crucial so that you may disclose any differences to parents and avoid any unpleasant surprises come tax time. It includes making budgets, invoices, tax documents, and financial reports.

The best way to go about this is to employ the right daycare forms. Here is a list of daycare forms that can help you communicate with parents and keep track of transactions.

· Daycare Receipts/ Tax Receipts

· Daycare Enrollment Form

· Daycare Donation Form

· Daycare Income and Expense Form

· Daycare Late Payment Notice

· Daycare End-Of-Year Tax Statement

· Daycare Personnel and Staff Forms

Communicate Your Policies

As a daycare provider, you must clearly communicate your payment and billing policies to your clients. Here are some examples:

• You may provide more flexibility for parents with partial payment plans. However, specify when the last installment is due if you're willing to accept installment payments.

• If your childcare facility charges by the week, you'll need to let parents know whether or not they'll be expected to pay for the holidays, as well as any other special arrangements you've made.

• If you plan on increasing daycare rates, inform the parents in advance through Daycare Rate Increase Form. You should also post a notice on your website or social media handles.

These are a few tips that can help you streamline your billing and payment policies and processes. As a result, you will improve your cash flow and decrease your accounts receivable!