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Running a successful childcare business involves managing a large amount of administrative tasks, especially when it comes to billing. Money can be a sensitive topic for families and your billing and payment systems can be complicated and time-consuming. By optimizing your childcare billing process for efficiency, you can save yourself and your families valuable time and reduce costly errors.
This article provides ten practical tips for faster and more efficient childcare billing. You’ll learn how to make payments more convenient for families and how to streamline your internal processes by leveraging automation.
Here's what we'll cover:
- Enforcing your payment policies consistently
- Offering convenient digital payment options
- Sending regular and automated reminders
- Communicating early and effectively
- Streamlining your internal billing system
Read on for ten ideas to implement in your childcare program today.
Childcare billing tips for families
Making billing as effortless as possible for families is not just about enhancing efficiency at your childcare center; it's about demonstrating care and respect for the families you serve, ensuring that their experience with your center is seamless and stress-free from start to finish.
1. Enforce your policies
Creating a clear, consistent payment policy is the foundation of a healthy billing system. Outline your policies at enrollment so families understand expectations from the start.
Be upfront about key details, such as:
- Your payment grace period and any associated late fees.
- The consequences of missing a payment.
- Whether families can adjust a child's enrolled hours mid-session.
- Your accepted payment methods.
While it can be tempting to offer leeway, especially with long-term families, inconsistent enforcement often creates more significant problems. If other families learn that policies aren't applied equally, it can lead to feelings of favoritism and undermine trust. Being firm and fair is the best approach for you, your staff, and every family in your program.
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2. Let families pay digitally
Offering digital payment options is one of the most effective ways to get paid on time. It allows busy families to pay from anywhere, anytime, instead of relying on cash or checks.
The benefits of digital payments include:
- Convenience: Families can pay invoices instantly from their phone or computer.
- Speed: Funds are transferred quickly, improving your program's cash flow.
- Tracking: Digital systems automatically log payments, simplifying record keeping.
A tool like brightwheel’s billing feature empowers you to accept digital payments via credit card or bank transfer, giving families the flexibility to view and pay invoices on their schedule. Removing barriers to payment is a simple way to encourage timely payments.
90% of preschools report that more families pay on time with brightwheel.
If your program still accepts check payments, brightwheel billing makes it easy to deposit and track checks directly in the app. Skip the trips to the bank and get access to your funds faster with this new feature.
I would say that if you are a new program that you should definitely jump on brightwheel and just experience it. It’s tools that help make your life easier as the owner and director. There’s no reason not to, with the cost and the effectiveness, it’s 100% a yes for me.” Crystal D., Owner & Director at Lil’ Ranch Hands Family Childcare Home in Minco, OK
As I build my new program, the billing features are a game changer. I can easily invoice parents, and everything is automatically tracked—especially helpful come tax season.” Emily K., Owner of Emily Finzen Childcare in Lake Benton, MN
Experience Curriculum allows you to lean into creativity while following the curriculum. It’s all right there, it’s all prepared for you, and then you can lean into it.” Leinani G., Owner of Creative Minds Learning Academy in Bothell, WA
Brightwheel helps us in every way possible. From their onboarding and support team to the features that keep us organized, on track with planning, and communicating smoothly as a team to parents and each other. I couldn't imagine a better management system for our program." Harida H., Administrator at Play Pals Daycare in Maumee, OH
3. Send regular reminders
Sometimes, all families need is a friendly reminder. Building automated reminders into your billing routine can significantly reduce late payments. Consider sending reminders five days before a payment is due to give families ample notice.
You can use several methods to remind families, including:
- A friendly sign on your program's front door.
- Verbal reminders during drop-off or pick-up.
- An automated email or in-app notification.
These simple nudges are a courtesy to families and help ensure your program maintains a steady cash flow.
4. Include late notices with daily reports
A discreet note in a child’s daily report can be an effective and confidential way to remind a family about a late payment. Families already expect to review these reports for important updates, so adding a payment reminder here ensures it gets seen.
This approach is best suited for a first-time late payment or as a gentle nudge during a grace period. It avoids handing a family another piece of paper that might get lost. However, for chronic late payments or large outstanding balances, a more direct conversation is necessary.
5. Communicate early
If you notice a family is consistently struggling to pay on time, it’s best to address the situation early. An open and honest conversation can help you understand their challenges and find a solution together before the problem escalates.
Arrange a time to speak with them face-to-face. While emails are great for reminders, a direct conversation is often more effective for resolving sensitive issues. This can be a tough discussion, but it's essential for maintaining a positive relationship and ensuring your program remains financially stable.
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6. Automate invoices
Automation is a powerful tool for reducing paperwork and saving your staff countless hours. Instead of manually creating and sending invoices each month, you can automate the entire process.
It’s important to understand the difference between automated invoices and automated payments. Automated invoices notify families that a bill is due, while automated payments automatically withdraw the funds.
With a system like brightwheel, you can set up recurring payment plans that automatically generate and send invoices on a schedule you choose. This eliminates a repetitive administrative task, freeing up your team to focus on more important work.
7. Automate payments
Autopay is not just convenient for families, it's also a great tool for lightening your administrative load. With automated payments, families can authorize their card or bank account to be charged on a specific day each month. Statistics show that businesses that offer autopay see a significant improvement in on-time payments.
This system gives you predictable revenue, allowing you to balance your books without chasing down outstanding invoices. Digital billing software also lets you track and manage all payments in one centralized location, giving you a clear view of your program's financial health.
8. Prioritize security
When families entrust you with their payment information, they expect it to be secure. When choosing a payment processing software, select a vendor that prioritizes security and is compliant with industry standards like PCI.
Highlight these security features when introducing your digital payment system to families. You can add a reassuring statement to your payment reminders, such as, "You can make a payment with our secure online system.” Helping families feel confident in your system’s security removes another potential barrier to timely payments.
9. Consider offering partial payments
Flexibility can go a long way in helping families manage their finances. Allowing partial payments can help them stay on track and reduce the amount owed at the end of a billing cycle.
Every family's budget is different. For some, making smaller payments throughout the month is more manageable than paying a single lump sum. Offering this option can lead to fewer overdue balances and shows that you’re willing to work with families to find a solution that fits their needs.
10. Take attendance digitally
If your billing is based on attendance, a digital check-in system can save you a significant amount of time on calculations. Instead of manually tallying hours from paper sign-in sheets, a digital system does the work for you.
When your attendance and billing systems are integrated, like they are in brightwheel, you can centralize all your information in one place. This allows you to go from reviewing attendance records to sending an accurate invoice in just a few clicks, eliminating the need for calculators and calendars.
Optimize your business
Your mission as a childcare providers is to provide a safe and enriching environment for children to learn and grow. A strong financial foundation is essential to fulfilling that mission.
By creating an efficient billing system, you can reduce administrative stress, improve cash flow, and build stronger relationships with families. Investing in digital solutions and prioritizing clear communication will set your childcare program up for long-term success.
