Childcare is a growing industry. Nearly six out of ten children between the ages of 4 and 5 attend center-based care before entering kindergarten. In 2018, around 8.74 million pre-primary school children were enrolled in a childcare center. While a daycare center seems a lucrative business, running one is never easy, especially when it comes to billing and payment collection.
Billing is just one of the many tasks a childcare owner or director needs to accomplish – doing it manually can be very tedious. It requires you to prepare and send out invoices on set schedules to the families of every child under your care. You also need to track overdue bills, penalties, and additional fees. If you’re taking care of children with benefits from the government, you might also need to send statements and reports to regulatory authorities for payment collection.
All of these administrative tasks can take so much of your time. This precious time could very well be spent on more important tasks. However, automating the billing process through the use of childcare billing system can simplify and speed up things.
Below let’s take a look at some of the benefits of using childcare care billing software.
Efficient billing process
Childcare management software introduces efficiency into the billing process. It automates repetitive tasks, such as gathering of customer data; invoice preparation, generation, and sending; calculation of dues; and application of discounts, penalties and co-payments. With such software, all you need is to encode the client details, select the applicable billing codes and payment scheme, and set the default invoice mailing schedule.
Unlike manual billing where you prepare invoices one by one, childcare billing allows you to create invoices by batches or on a fixed or variable schedule. You can also create one-time charge or temporary invoices. Parents can opt to receive invoices through email, adding convenience.
An efficient billing system reduces your workload, giving you more time to focus on core functions.
Transparency of data
Concerns regarding billing and payment are not uncommon. With childcare billing system, you can easily access financial records. Hence, you can provide answers to questions and offer solutions immediately. This will help foster good relationship with families.
Transparency of data is important when you undergo an audit, either internally or from an external regulator. Data is highly customizable depending on your needs. You can check individual accounts or review invoices (both paid and unpaid) in a given period. This data can give you useful insights about the business.
Developers of Prime Childcare Billing note that one of the best benefits of childcare software is remote access. The system comes with a mobile app where administrators can access invoicing features anytime, anywhere.
You can create, manage, and track billing even where you’re away from office. This means there will be no delays in invoicing and collection.
Improved client relationship
In childcare business, developing and fostering good relationship with your clients is essential. Many parents now prefer to pay via e-payment options, receive reminders and invoices through email, and be able to register online. The fact is that everything has migrated to the digital world – and your business is expected to offer this feature.
Regularly track invoices
Automated billing systems enables you track all issued invoices and ensure that they are paid on time. You can also schedule notifications so parents are reminded of incoming invoices. This way, parents can prepare ahead of time and minimize late payments. Billing software makes it easier to track check payments, whether they have been cleared or have bounced.
Delays in payment can result in cash flow problems. If not addressed early on, total uncollected revenues might balloon and lead to operational issues. With childcare billing, you can achieve faster payment processing, thus more cash available for operating capital.
Ensure accuracy and timeliness
By minimizing the involvement of employees in the process, childcare billing systems reduces the risk of manual errors. In manual billing, there is the possibility of miscalculation, errors with the client name, delay in sending the mail, or faulty address. All of these can be avoided with automated invoicing.
Nowadays, clients have no patience for errors and delays. Proper billing and communication reflects so much about your childcare center. Parents would surely want to place their children in a center that know what it is doing.
A billing system generates significant savings for a childcare center. Aside from eliminating the costs associated with paper-based invoicing (such as paper, ink, and mailing costs), you also reduce the time and manpower involved in this process.
The billing software shortens (even eliminates) the tasks involved in billing; hence, you will save up on manpower costs. And since the billing process has been simplified, your employees can finish earlier and focus on their childcare functions.
As a childcare center, it is your mission to provide children with an environment that fosters learning, exploration, and growth. Parents entrust their children to under your care because they trust you can do this.
To fulfill this mission, it is vital that you have a healthy financial cash flow. A childcare billing system can help ensure that payments are collected timely and accurately. Investing in automation proves is very beneficial and is crucial in every childcare center.