As a childcare provider, you have many responsibilities to keep track of every day. Staying on top of the billing process is a common challenge for many providers. Your finances are the main resource that allows you to run your business, so having some type of digital childcare billing software is crucial. It makes sure your doors stay open, your supplies remain stocked, and your employees get paid on time.
To help you find the support you need, we’re sharing everything you need to know about childcare billing software.
What Does Childcare Billing Software Do?
Unless you use some type of childcare software to help you with billing, it can be overwhelming to effectively manage this process. You, your accountant, and the families you serve can all benefit from a childcare center billing software. Here’s how.
Have you ever sat down at your computer at the end of the month to realize how much time is wasted creating new invoices for each family? Sending invoices manually means you have to wait for parents to send their payment, then sometimes wait days for tuition payments to process.
With childcare billing software, you can set up automatic recurring invoices every month. You can also customize childcare bills for each family. Some childcare platforms even allow you to record late pickup fees as they occur, so you never forget an extra charge.
Charging and receiving childcare payments online is a lifesaver for business owners. With online billing, you can:
- Set up recurring billing
- Accept online payments via credit card, debit card, or ACH bank transfer
- Let parents access their own online dashboard via desktop or mobile app
- Securely keep parent credit/debit card information on file to process approved transactions for things like supplies, field trips, or fundraisers
All billing platforms require small fees for online payment processing. These are typically around 3% of the payment. Childcare billing platforms involve similar processing fees, but some allow you to process offline payments for no extra charge. You can receive payments via cash or check and still log the financial information all in one place, saving you extra costs. Online payments are still affordable as they only charge a minimal fee.
Childcare Business Bookkeeping
Sorting through spreadsheets every tax season is no fun, which is why the best childcare billing platforms include an organized system packed with your most important financial details. You can use it to make life easy for you and your accountant come tax time.
Here are some ways childcare software helps your recordkeeping:
- View your progress year after year
- Save yourself the trouble if you ever get audited
- Project revenue on a month-to-month basis
- Notice any gaps in your billing system
- Track late or missed payments
The longer you use a childcare billing software, the more you can learn about your business’ tuition trends and growth over time, setting you up for success.
Financial Safety and Security
Billing platforms for childcare centers are favored for their bank-level security. One major benefit of using a childcare software is that it’s safer and more secure than generic payment processors like Venmo or PayPal.
Bank transfers are safely processed on time, whether parents make a one-time payment or set it up to recur every month. Plus, you’ll never miss a payment due to security warnings.
Childcare billing platforms include parent communication features. This allows streamlined updates between teachers and families. Billing systems give parents access to payment policies, digital invoices, payment receipts, late notices, and more.
Here are some examples of what childcare software can do for your parent communication:
- If you’re planning on raising your tuition fees next year, you can inform families ahead of time so they can prepare financially.
- If a parent doesn’t use online payments but tends to forget to pay on time every month, you can set up automatic email reminders to help them out.
- If a parent’s credit card expires in your system, you can send them a direct message asking them to update their information to continue automatic payments.
With so many benefits of the top childcare billing software available, choosing the right one will aid your business from every angle. It’s also a good idea to know your options if you’re planning to start a childcare business. That way, you’ll begin on the right track equipped with everything you need to grow your business.
Childcare Billing Software vs. Generic Billing Software
A lot of childcare and in-home daycare providers think they should save money on monthly subscriptions and simply use a generic payment processor instead. But you might want to consider the risks and rewards associated with both types before making a decision.
- Generalized billing platforms often aren’t any cheaper than specialized childcare software, and don’t guarantee security or childcare features your business needs.
- Childcare billing platforms integrate with other digital aspects of your business, as they’re created with you— the childcare provider— in mind.
- Childcare billing systems come fully prepared with everything you need, from learning and assessment records to attendance tracking and more. That way, you can have everything in one place.
- Billing platforms catered toward childcare businesses let you customize your invoices with the name, contact details, and logo of your childcare center.
- Using a generic payment processor can make you seem unprofessional to potential customers. Having software set up throughout your childcare center gives the impression that you take your business seriously.
Need help setting up a billing process for your childcare business? Check out the Quick Guide to Childcare Billing for more guidance.
Best Billing Software for Childcare Centers
Opting into a billing software created specifically for childcare businesses makes admin tasks easier, saves you financial stress, and improves the lives of the parents you support. If you’re ready to invest in the best billing software for childcare, there are great options available.
When searching for the right childcare platform, consider:
- Your budget
- Classroom size
- Additional software features you need
- Ideal level of parent-teacher communication
- Payment security
- Software integrations
- What you need to switch from an existing childcare software to one that includes billing
Want to use a childcare app that does it all? Daily Connect is an affordable, full-featured childcare billing software for childcare and daycare providers like you. Schedule a free demo today to see why it’s loved by daycares, preschools, and childcare facilities nationwide.