A streamlined billing process is key to running a successful childcare program. Whether you're using a manual system or another ECE billing platform, these tips can help you save time on administrative tasks—all within the same platform you and your families trust.
Running a successful childcare program involves managing many administrative tasks, especially billing. Money can be a sensitive topic, and complicated billing systems can be time-consuming for you and your families. By optimizing your childcare billing process for efficiency, you can save valuable time and reduce costly errors.
Whether you're already using a system or still relying on manual processes, brightwheel's all-in-one platform can help.
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 demonstrates care and respect, ensuring their experience with your program is seamless and stress-free from start to finish.
1. Enforce your policies with clear tuition agreements
A clear, consistent payment policy is the foundation of a healthy billing system. A great way to establish this is with a tuition agreement at enrollment so families understand expectations from the start. This simple step can prevent future payment disputes by setting clear financial expectations upfront.
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.
Brightwheel offers templated tuition agreements you can use or edit. You can also create your own from scratch. Once signed, billing plans are automatically populated, saving you administrative time.
While it can be tempting to offer leeway, inconsistent enforcement often creates more significant problems. If other families learn that policies aren't applied equally, it can 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 and deposit checks from your desk
Offering digital payment options is one of the most effective ways to get paid on time. It allows busy families to pay from anywhere, at any time.
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.
For families who still prefer to pay by check, driving to the bank to deposit them is inefficient. Brightwheel is the only childcare management software that allows you to deposit checks directly from your desk with no daily limits. You can also easily log offline payments from Zelle or other methods, keeping all your financial records in one place.
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
If you are spending more than 30 minutes weekly on billing, that’s a red flag. Brightwheel has made it where you set up your billing plans, and you just don’t think about it unless you have to make changes.” Miranda E., Director at Little Eagles Daycare in Madison, MN
Billing wise watching what other people have done in the past. For their billing it was like 4hrs every single week. I spend either 0 to 5 minutes.” Bri M., Owner of Cultivate Childcare in Sioux Falls, SD
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 automated reminders
Sometimes, all families need is a friendly reminder. Building automated reminders into your billing routine can significantly reduce late payments. With brightwheel, you can schedule reminders to be sent automatically before a payment is due, giving families ample notice. 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 for a first-time late payment or as a gentle nudge. For chronic late payments, 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. While emails are great for reminders, a direct conversation is often more effective for resolving sensitive issues.
Tips for streamlining your childcare billing process
Beyond family-facing improvements, streamlining your internal billing process is crucial for boosting efficiency and strengthening your business.
6. Automate invoices and late fees
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 with brightwheel.
Set up recurring billing plans that automatically generate and send invoices on a schedule you choose. You can also automate late fees, ensuring your payment policies are enforced consistently without extra work for your team.
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.
This system gives you predictable revenue, allowing you to balance your books without chasing down outstanding invoices. Digital billing software like brightwheel 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 to build their confidence and remove a 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. 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 to generate reports
If your billing is based on attendance, a digital check-in system can save you a significant amount of time. 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 auto-generate accurate attendance-based billing reports with just a few clicks.
Optimize your childcare billing today
By creating an efficient billing system, you can reduce administrative stress, improve cash flow, and build stronger relationships with families. Discover the billing tools already included in your brightwheel subscription, at no added cost.
