Keeping track of your expenses and income is crucial for your childcare business. Payments should be easy to receive, process, and track so you can spend more time focused on your daycare.
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
Why you should track your childcare payments digitally
The benefits of using technology to track childcare payments include:
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 purposed for tax filing. Parents are keen to use 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.
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.
One important thing to consider when going digital is cost. Switching to a digital billing solution will most likely impact your budget and daycare payment solutions pricing varies by provider. Choosing the best software for your business will require thorough research and preparation.
Also, implementing new technology always requires some training time upfront. It’ll take some time before you can comfortably use all the features of the new technology without making mistakes. You’ll also need to communicate any new procedures that use the technology to your staff and families.
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
Working families are usually extremely busy, and making daycare payments should make their lives easier, not more complicated. One way you can simplify this process is by switching to an online payment solution so they can make payments easily from anywhere, anytime. They can save even more time by automating their payment process by setting up a recurring billing option.
Data breaches are on the rise in the US and you don’t want to compromise your family’s and child’s private information. It’s crucial to consider data safety and digital security policies when finding a daycare payment solution.
How to track childcare payments | Frequently asked questions
What time do banks release funds?
You should expect direct deposits in your bank accounts between 12 a.m. and 6 a.m. on the same day or within one business day after the client makes payment. Knowing when direct deposits hit your bank is crucial to your daycare business operations.
How long can a bank hold your money?
Banks can hold your money for up to two business days, even if you’re cashing an “on-us” check, which are checks that are issued and received by the same bank.
They can also hold your funds for an extra five business days, meaning you might wait a total of seven business days to access them when dealing with local checks. Sometimes, banks can hold your money for lengthier periods when they deem fit.
Can checks be tracked?
There’s nothing you can’t track in the era of technology, including checks. But it’s only easy to track checks that you’ve already cashed. Often, banks keep a record of the transaction, making it easy to track cashed checks.
The best daycare payment solution—consider brightwheel
Moving your childcare payment logs to a digital solution is one of the best decisions you could make for your childcare program. You’ll save time, improve workflow, and make your families happy.