Daily Connect

Done right, running your own childcare business can result in major success. You can provide an important service to your community, helping young children learn important skills, while also making a great living for yourself. But one of the most frequent difficulties business owners in the daycare industry face is managing childcare center billing.

With the right tools and practices in place, setting up a childcare center billing system can help the owners, staff members, and parents provide the best childcare possible. If you’re trying to improve the financial aspect of your childcare business, here is a quick guide to set yourself up properly.

Set Your Cost of Tuition

To bill effectively, you first need to know the cost of tuition for someone to enter your childcare program. If you’re running a daycare that is already well-established, you likely have tuition down, as well as all the details that come with it. 

Determining Tuition Costs

If you’re new to running a childcare business, here are some of the things to consider when setting up the cost of tuition:

• Business expenses (rent, payroll, utilities, etc.)
• Insurance and licensing costs 
• Marketing budget
• School supplies
• Taxes and deductions
• And more

Competition and Capacity

Your tuition rates will also depend on how much local competition charges, as the parents who are considering your daycare center will compare with other schools. Look at how much they’re charging and how they handle their tuition process so you know what to base your pricing on. 

Another thing to consider is the capacity of your facility. How much will rates change if you’re not at maximum capacity? Some childcare centers leave wiggle room so their maximum capacity brings in extra revenue. Others are comfortable always running at maximum capacity with a long waitlist. If you have specific financial goals for your center, you may have to factor in future gains in your tuition setup. 

Pricing Structure 

Once you know your tuition costs, you need to decide how to best structure your pricing. When parents sign their child up to attend daycare, they want clear expectations of how and when they’ll pay the bill. 

Some daycare providers charge hourly, whereas others run on a weekly or monthly payment plan. Other things to make clear in the pricing structure is special additional fees such as:

• Enrollment fees
• Late pick up fees
• Special holiday prices
• Late payment fees
• Summer vacation childcare plans
• Special deals for advanced payment 
• Optional extras, like field trip fees

If there are any other specific details necessary to families in your childcare center, make sure that you outline them clearly in your payment policies. 

Childcare Center Billing: Payment Methods and Policies

Once the parents enrolling in your daycare understand the pricing structure, the next issue they’ll  have questions about is how to make payment. It’s best to create a set of client policies that clearly explain costs, payment methods, and tuition agreements. 

How to Collect Payment

Most daycare providers collect payments through online payments, using methods like credit cards or ACH bank transfers, but others will accept cash or checks. Having an online payment system is the most convenient option for childcare centers today, enabling payments to be collected on auto-pilot. Whether it’s through a payment collection page on your school’s website or a childcare center parent billing software, many parents appreciate the option to pay online. This way, they can monitor their bills and set up recurring options. 

Parent Policy Handbook

Instead of sharing a random collection of paperwork and documentation with the parents who enroll in your childcare center, most childcare centers offer a handbook. Whether it’s a paper handbook or a digital handbook, a parent policy handbook will make it easy for the parents to have all their questions answered in one place. If your daycare center accepts any form of financial aid, make sure you set up details about that in the policies as well

Tracking Billing and Accounting 

Every childcare center needs to keep track of parent billing and payments on an ongoing basis. With consistent accounting, you’ll save yourself the headache of losing track of late or missed payments, misfiling paperwork, and developing poor communication with parents. 

Billing Frequency

Determine how often you will bill at your childcare center. Will payments be due once a month? Bi-weekly? Weekly? Depending on your facility’s bills and expenses, make sure you’ll receive childcare payments in a timely manner so you have enough overhead to operate your business. 

Bookkeeping

How will your daycare center managers keep track of all the payments that come in and out of your business? It’s a good idea to keep track of all your revenue and expenses on a central platform. Some of the areas you should track are: 

• Tuition from each family
• Invoices
• Receipts
• Additional fees
• Online payment dashboard
• Log of transactions 
• Operational fees and dues

While some daycare center owners do their accounting and bookkeeping themselves, you can also consider hiring a professional accountant who is familiar with the childcare industry.

All-in-One Childcare Center Billing Software 

Having childcare software that handles all your parent billing needs will streamline your processes, and can make your life a lot easier. Some childcare software systems such as Daily Connect offer invoicing, parent payment tracking, and a variety of payment processing. All of these can be done within the app, saving you and your staff a lot of time and resources. 

Childcare software also allows your business to keep a close eye on payments and parent communication simultaneously. For example, you can set up an automated invoice that will be sent out on a designated date each month, so parents never miss an upcoming bill notice. It allows them to pay instantly through the app or online. Or, if they prefer to set up automatic payments, they have the option to do so. 

Other features of this type of software include: 

• Sign-in and sign-out tracking
• Student learning and assessment tools
• Staff-teacher communication boards
• Parent-teacher direct messaging 
• Childcare center management software
• Documentation and compliance tracking
• And more

If you’re ready to implement a full-featured childcare software that can handle the billing for your childcare business, get started with Daily Connect today. See what Parent Billing can offer your center. If you have other questions about childcare software, set up a demo with our team to learn more. 

Every city, town, and village needs childcare centers. They’re crucial parts of local communities, enabling parents to work and creating healthy, happy experiences for kids to learn and bond with others. If you’re thinking about how to start a childcare business, there are several things you should be aware of.

In this article, we’ll cover everything you need to know to start a childcare business that lasts.

Choose a Location

The first thing you need to decide when considering how to start a childcare business is whether it’s going to be an at-home center or a daycare facility.

Many small but mighty childcare businesses are run by one professional in their home. It’s a flexible option where even your own young children can be present with you while you run the childcare business. However, the cost of this startup can be difficult without ample preparation or support. You need the right amount of space dedicated to the daily activities of your business, meaning a smaller living situation isn’t ideal. 

Running a childcare center at a facility can be easier if you have enough money to rent or buy a dedicated space. Renting out a childcare space is convenient, as you get the entire space to run your business. But if you’re committed to operating a facility, there are often more regulations you need to follow.

Learn the Regulations and Get Licensed 

One of the most crucial parts of starting a childcare business is obtaining the right licenses and abiding by regulations. It’s wise to get yourself covered early so you don’t run into any conflict with the law and so you can start operating your business smoothly.

Look into everything you need at a federal and state level. Some cities and counties have different regulations you’ll need to be aware of, too. Do your research and contact local education boards to find out exactly what you need to get legitimately licensed.

Establish Your Finances 

Get clear on the financial requirements of your new childcare business before getting too far into launching into the business. Create a forecast that makes clear how many children you’ll need to enroll, and at what prices. This means knowing your budget, the cost of any overheads you’ll have, and any fees due for licensing. It should also include clear financial goals so you can work your way up toward success in your business.

Learn how to create a childcare center business plan which will help you have a clear direction in your business, especially for the first several years. If you need assistance with the finances during startup, look into government grants and tax credits available to you.  

Set Up Bookkeeping and Accounting

Along with getting clear on the financial details of your business, you need to plan what type of bookkeeping you’ll use. This includes the details of:

• Enrollment and tuition costs
• Financial tracking
• Parent billing
• Childcare software 
• Tax details
• Organizing write-offs and school supplies

If you set good accounting practices in place before your business gets up and running, it will make it much easier for you long-term. Don’t try to do it alone — consider investing in a digital platform geared specifically for childcare providers. This will save you a lot of time, money, and energy for years to come.

Create the Curriculum

What’s a childcare center without a curriculum? Come up with the learning plan for your daycare center. Tie in your childcare center’s core philosophy and modes of operation in your schedules and methods. 

Consult the Early Childhood Education (ECE) standards in your state and implement a balance of play, hands-on learning, and structured lessons daily. Make it unique— your childcare center stands out somehow, so include it in your teaching model.

Hire Staff to Join Your Team

If you’re planning to run a childcare business with the help of others, you’ll need to think about your hiring process. Here are some key questions to consider when getting ready to hire employees for your team:

• What qualifications are you looking for?
• What are the childcare center’s values, principles, and philosophies?
• What level of experience do you expect each staff member to have before hire?
• What curriculum will you direct the teachers and staff to implement?
• What will you include in the employee handbook?
• How will staff communicate with each other on-site during work hours?
• What will be the clear expectations for each level of staff?
• How will the onboarding process work?

Every childcare center is different, so choosing employees that reflect the standards of your business is essential.

Marketing and Promotion

You’ll need a strategic marketing plan to ensure that families can easily find you and enroll their kids in your new daycare center. It’s helpful to have an online presence, whether with a custom website, social media accounts, or online listings on sites like Angie’s List or Care.com.

Know which demographic you serve in the area your childcare center will be in. Target your marketing plan toward the niche you serve and you’ll have better luck converting leads into sign-ups. Leverage local outreach opportunities, such as public bulletins, family planning centers, neighborhood parks, and local babysitting services.

Write Your Policies and Contracts

When it’s time to finally set your business in stone, finalizing it beyond licensure is a milestone worth celebrating. Create your school’s policies, guidelines, and contacts for:

• Parent and teacher agreements 
• Health and safety standards
• Food and allergy protocols
• Staff files
• Legal documentation
• Emergency plans
• Field trip liabilities
• And more

If you need help, hiring a lawyer might be a good idea so you can make sure all your bases are covered and nothing is left out. 

Invest in a Childcare Software

When you’re finally welcoming kids to your new childcare center, run your business smoothly by using a childcare management software. These digital tools help you organize your business in every way possible. 

From payment processing to ongoing parental communication, childcare software apps like Daily Connect provide you with the streamlined processes you need to run your business. 

Features of childcare software include: 

• Shared event calendars
• Parent-teacher communication 
• Center-wide communication tools
• Health and COVID-19 protocols 
• Staff communication and attendance tracking
• Contactless sign-in and sign-out
• Billing and payment management
• Documentation and authorization file management
• Learning and assessment tools
• And more

If you’re starting a childcare center, the process can seem overwhelming. Having all the tools you need in one versatile platform gives you quick and easy access to the most important information you can always refer back to. 

Whether you’re just beginning to think about how to start a childcare business or you’re learning how to improve your new daycare business for long-term success, contact Daily Connect today to see how our platform can guide your everyday operation. 

Running a successful childcare business takes work. So much of your care, time, energy, and financial resources goes into making it operate at its best. But things can become scattered and confusing when there isn’t a solid childcare center business plan set into place. What exactly is a business plan, and how can childcare providers use one? If you’re looking to put your childcare center on the right track, here are the best childcare business plan strategies you should follow.

Why You Need a Daycare Business Plan

Having a business plan gives you the foundation you need to build your business. Ideally, before starting a business you have a thorough guide detailing everything you should expect. It includes your startup budget, success markers, legal requirements, employee processes, marketing strategies, and more. 

What Your Childcare Center Business Plan Should Include

Creating a business plan isn’t an easy (or quick) process, but it’s a must if you want to make your vision a reality. Even if you’re already in business but simply want to improve, coming up with a new plan can be helpful to reach future goals. 

1. Mission and Goals 

Start with why you’re running a childcare center in the first place. Who do you hope to help? What impact do you want your school to have? What’s your larger vision? Establishing specific goals will give you direction when making important decisions. 

When it comes to goals, here are some necessary subcategories to get clear on:

• Unique Mission Statement – the best brands have a strong mission that reflects throughout their entire business. Form a unique, clear mission statement that’s specific to your daycare. What sets you apart? Why do you do what you do?

• Location – location will determine how you approach your business model. If you’re in an area that’s considered a childcare desert (little to no daycare available), you’ll have an easier time setting up your business than a location that already has a thriving population of childcare providers. Make sure you scope out the competition.

• Type of Daycare – is your daycare an at-home center, a facility, or affiliated to a private or religious organization? Is there a gap in your local market for a childcare center like yours?

• Success Markers – what are the indicators of success in your daycare? How many students need to be enrolled to be at maximum capacity? How much money does your business need to make before it can expand?

• Budget – starting a business isn’t cheap. If you’re considering starting a daycare, get clear on your budget. This includes rent/mortgage, utilities, payroll, supplies, licensing fees, tuition, and more. 

2. Operational Policies

Childcare is a regulated industry, and all childcare centers have to abide by policies set by local regulators and governments. Policies keep your childcare center safe and in good standing, and also help ensure trust between you and the families you’ll potentially provide care for. Failing to define and abide by a clear set operational policies can ruin your business, so make sure you’ve thought through the details and are aware of what’s required.

Policy requirements vary by state and county. Here are the main types of operational areas you should focus on:

• Licensure and Laws – the minimum requirement to run a childcare center is local licensure. If you’re in the U.S. check the National Database of Childcare Licensing Regulations to learn more about your requirements.

• Health, Safety, and Sanitation – to operate a daycare, you need to follow health and safety guidelines. Make sure you, and your staff, are well aware of all the legal regulations and site-specific protocols your center will follow.

• Worker’s Comp – if you or a staff member gets injured on the job, having a worker’s compensation plan can save your business a lot of money and legal trouble.

• Liability Insurance – insurance protects and helps cover your childcare business from disastrous accidents. 

• Crisis Plan – what are your action plans if there’s ever a crisis or natural disaster during daycare hours?

3. Teacher and Employee Responsibilities

If you’re relying on staff members to help run your business, it’s vital to create clear expectations to encourage professionalism. 

At a minimum, plan these factors of employee responsibility:

• Accreditation – what credentials do your teachers and employees need to have to work for you? 

• Hiring Process – structure the hiring (and lay-off) process to meet legal requirements. Make sure the people you hire fit into the mission of your childcare center. 

• Curriculum & Activities – how and when will staff members need to plan (or deliver) the necessary curriculum? What activities will happen on a weekly and daily basis? How will you track learning and assessment?

• Staff Communication – there need to be defined methods of communication between all staff members. Utilizing technology will help lower the risk of error. 

4. Tuition and Payment Methods

It’s important to understand how your childcare center will make money. How will families pay for your daycare center? What will your tuition fees be? Know the financial requirements your childcare center needs to keep running (and thriving). You should consider:

• Cost of Each Child – tuition costs should be factored into your overall budget and annual financial goals. This is what determines how much it costs for each child to attend your daycare. Many childcare centers have plans that parents can choose from.

• Electronic Payment Methods – these days, it’s rare for adults to carry cash or check on hand. Setting up online parent billing will encourage on-time payments, easier billing, and better tracking of funds throughout your business. 

• Additional Fees – clarify any fees that need to be paid by parents, such as late fees, onboarding fees, or special activity fees.

5. Parent Communication Strategy

Communication between parents and teachers is one of the most important aspects of running a great daycare. How you communicate with parents says a lot about the character of your staff and the priorities of the business.

Here are some key things to consider when improving parent-teacher communication:

• Scheduling – do parents have a way to view their childcare schedule? Everyone’s busy, so it’s beneficial to provide some sort of digital calendar to help them stay on track.

• Academic Reports – if you can provide announcements, updates, and milestones for a child’s academic progress, parents will feel confident they’re getting what they’re paying for. 

• Daily Communication – having a way to consistently relay information to parents throughout the day is important. Consider using a childcare management platform with parent communication features. 

• Digital Contact – beyond verbal communication, parents who receive real-time updates while they’re away from their child get the feeling of being present for their child’s special moments.

6. Marketing Plan

Effectively marketing your childcare center can help skyrocket growth and boost your reputation with local families. Most business plans pay a significant amount of attention to marketing strategy. Here are the key three things to map out:

• Marketing Methods – how will you market your business? Will you focus on digital marketing, word of mouth referrals, or traditional means through newspapers and local ads?

• Online Reputation Management (ORM) – maintaining your reputation online and in-person can take time, but with the right marketing plan, it can position you as an authority in childcare. 

• Advertising – paying to display ads online can help target your ideal audience. By calculating your ad spend or hiring a marketing team, you can bring in the families who are looking for a childcare center like yours.

Tools for a Successful Childcare Center Business Plan

Whether you’re thinking of opening a new daycare center or already running an established facility, knowing your business plan inside and out will help you achieve your goals and guide you as you grow your business.

You can even streamline this process with childcare-savvy digital tools that can enhance your business plan. Apps like Daily Connect give you access to all systems and strategies you need when planning and running your childcare business. 

With customizable online learning tools, parent-teacher messaging, childcare center management, and parent billing features, Daily Connect helps childcare businesses run smoother than ever. Get a free trial today, or contact the team for a step-by-step demo of how Daily Connect can improve your business for years to come.