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Keeping track of your expenses and income is crucial for your childcare business. Payments need to be easy to receive, process, and track so you can minimize errors and spend more time in the classroom.
Luckily, you have more options than ever when it comes to selecting a payment system. Digital childcare payment solutions offer a faster and more convenient way to manage your payments. Some daycare digital solutions can even track expenses, attendance, meal logs, and events.
If you’re new to tracking daycare payments, this guide can help you learn:
- Why to track your daycare payments digitally
- What to consider when researching daycare payment solutions
- How to track childcare payments
The benefits of tracking childcare payments digitally
Digital payment solutions are critical for any modern childcare business. Not only do they increase accuracy and reduce admin work, but they also offer families a seamless, secure transaction experience. This approach streamlines operations while also fostering trust and confidence in your services, laying the groundwork for long-term success.
Below, we discuss the benefits of using technology to track childcare payments.
Streamline your workflow
A software solution for your childcare payment process can streamline your administrative workflow and bookkeeping. For example, with a solution like brightwheel, you can set up recurring invoices. You can also automate the delivery of electronic payment receipts (another timesaver and parent-pleaser).
Digital payment solutions help you manage your tuition and billing from one centralized platform. You can safely and securely connect your bank account and set up direct deposits, saving you those dreaded trips to the bank. Save time, get paid faster, and avoid lost invoices or misplaced checks.
Improve your internal business practices
A childcare payment software can do more than handle daily tasks—it can also improve how you manage your business.
Daycare payment software can track your income and produce detailed reports about your payments. For example, brightwheel allows online viewing of your outstanding, pending, and past-due payments in an easy-to-read dashboard format.
You can also track revenue by classroom, child, or date, and forecast future revenue by week, month, or year. This report also allows you to track any subsidies or discounts, which can be a huge timesaver. Tracking childcare subsidy payments can be time-consuming and cumbersome. It requires determining how much parents owe each month and how much is covered by the subsidies. The balance owed by each party may fluctuate, adding more complexity to the process.
With a tool like brightwheel’s subsidies feature, you can easily track and manage payments across all payers and admins can quickly understand who owes what. This includes improved processes for calculating the amount owed by families and agencies, tracking completed or outstanding payments, accessing enhanced reports, and editing and backdating subsidy payments—everything you need to streamline your billing practices.
Another helpful brightwheel report is the aging report, which allows you to easily track past due payments by child, classroom, or enrollment status. Having this data at your fingertips is helpful when sending payment reminders to families regarding late or missing payments.
Offer families ease and choices
These days most financial transactions already happen in the cloud and paying for childcare shouldn’t be any different. Giving families the option to pay via online transfer or credit cards means easier payments for families and faster deposits for you.
With brightwheel, you can conduct your billing and tuition collection entirely online, which is a huge benefit for busy families. Parents can even enable an automatic payment option, so they don’t need to remember to pay their bill.
Digital payments help families keep a digital record of their childcare expenses that can easily be used for tax filing. Families might also be interested in using credit cards for budgeting purposes or to reap points with purchases.
Make your childcare program stand out
Offering an online solution can be a great way to signal to prospective families that you run a modern program and can directly help your marketing efforts. It can be hard to stand out and compete with other child care choices available to families.
Demonstrating that you’re familiar with the latest technologies can build trust and a reputation as a program always striving to improve.
Aside from digital childcare payment logs, brightwheel also offers family communication tools, classroom activity tracking, and other features that can help make your program shine and boost your enrollment.
Free Childcare Billing Guide
Download this free guide to streamline your childcare billing processes and save time.
Drawbacks of digital daycare payment solutions
Ditching manual daycare payment systems for digital solutions can be hugely beneficial for your business, but there are some downsides.
Cost of implementation
One important thing to consider when going digital is cost. While digital payment solutions can save time and enhance efficiency in the long run, the initial cost of setup, including purchasing software and hardware, can be substantial. There are also ongoing costs related to maintenance, updates, and security measures that childcare providers must consider.
Technical challenges
Despite the benefits, implementing digital payment solutions can encounter technical challenges. Not everyone is tech-savvy, and this can create a barrier for some employees and families. Training and support are crucial but can require significant time and resources. It’ll take some time before you can comfortably use all the features of the new technology without making mistakes.
Resistance to change
Change can sometimes be met with resistance. Transitioning to a digital payment system may face pushback from staff or families accustomed to traditional payment methods. Addressing concerns, offering training, and demonstrating the benefits are important but require effort and patience.
What to consider when looking for the best daycare payment solution
With so many daycare payment systems available, choosing the best one for your business can be a challenge. Researching your options is crucial before settling on a solution. Here are some critical factors to consider when looking for a daycare payment software:
Ease of making payments
Ensure the payment solution is intuitive and straightforward for both your staff and the families. A user-friendly system reduces training time and fosters a smooth transition, facilitating a positive experience for everyone involved.
Security
Digital transactions necessitate robust security measures. It’s crucial to consider data safety and digital security policies when finding a daycare payment solution. Look for a system that adheres to the highest standards of security, including encryption and compliance with payment industry regulations, to protect against fraud and breaches.
Integration capabilities
Seamless integration with other systems, such as accounting software or customer relationship management tools, can streamline operations and enhance efficiency. Look for a payment solution that offers easy integration options.
Payment flexibility
Families appreciate flexibility in payment methods. Whether it's credit cards, direct bank transfers, or online payment platforms, offering multiple options can enhance satisfaction and ensure timely payments.
If some families still prefer to pay by check, brightwheel billing makes it easy to deposit checks right through brightwheel. Skip the trips to the bank and deposit checks directly in the app. Track all payments in one place with funds appearing in your account in 1-2 business days.
Customer support
Inevitably, issues arise when implementing any new system. A reliable and responsive customer support team is essential to provide timely assistance and address any concerns your team or families may have. Look for a payment solution provider that offers customer support to ensure any issues are resolved quickly and effectively.
Quick start guide to track childcare payments: A 5-step process
Effectively tracking childcare payments is crucial for financial stability and smooth operations. Follow these five steps to implement an efficient payment tracking system:
Step 1: Choose a system. Select a reliable payment tracking software or platform designed for childcare programs. Prioritize features like automated billing, payment processing, and reporting.
Step 2: Set up family accounts. Input all family and child data, including payment schedules, tuition rates, and any discounts or subsidies. Ensure contact information is accurate.
Step 3: Define payment policies. Clearly outline your program's payment policies, including due dates, late fees, and accepted payment methods. Communicate these policies to all families upfront.
Step 4: Automate billing and invoicing. Configure the system to automatically generate and send invoices, and process recurring payments. This reduces manual effort and minimizes errors.
Step 5: Monitor and reconcile regularly. Review payment reports weekly to identify outstanding balances, reconcile bank statements, and address any discrepancies promptly. This ensures accurate financial records and helps prevent revenue loss.
Frequently asked questions about how to track childcare payment
What tools can I use to track childcare payments?
You can use dedicated childcare management software, like brightwheel, to automate and track payments efficiently. These tools centralize invoicing, payment collection, and reporting, which simplifies your financial management far more effectively than manual spreadsheets or generic accounting software.
What reports should I generate to track childcare payments effectively?
To effectively track payments, you can regularly generate billing and revenue reports, aging reports to monitor overdue balances, and payment history reports for individual accounts. These documents provide a clear overview of your center's financial health and help with forecasting.
What are the common challenges in tracking childcare payments, and how can I overcome them?
Common challenges include managing late payments, manual data entry errors, and tracking multiple payment sources like subsidies. You can overcome these by implementing a childcare management system that automates invoicing, sends payment reminders, and provides a centralized dashboard for all financial activity.
Can I still accept checks with a digital payment solution?
Yes, you can still accept checks with a digital payment solution, however you often have to physically deposit checks at a bank or use a separate app. With brightwheel's billing feature, you can now deposit checks through brightwheel by simply taking a photo. You can track all payments in one place, digital and checks, and funds will appear in your account in 1-2 business days.
Conclusion
Adopting technology to track childcare payments is a transformative step for any childcare business. By moving from manual methods to a digital solution, you can streamline your administrative workflow, reduce errors, and save valuable time.
