Many daycare business owners spend countless hours calculating daycare tuition and fees and dealing with bounced checks and other collection headaches. How can you eliminate this tedious child care job? The best way for child care centers to increase successful payment collection is by investing in childcare software.
Daycare for software businesses usually include fee collection programs that will dramatically reduce the time and effort you would normally spend collecting and processing payments through electronic funds transfer (EFT).
There are three ways that quality child care software may process payments:
- Recurring ACH (Automatic Clearing House) transactions: These are bank to bank transactions. Payments are automatically deducted from the client’s checking or savings account and deposited then into your daycare’s business account.
- Recurring credit card transactions: Here, the client’s credit or debit card is automatically charged on a recurring basis.
- Point of Sale Transactions (POS): POS transactions allow you to process payments through a credit or debit card swipe on-site.
When you set up the software, every family will have a ledger. The daycare software stores and manages a complete history of charges, deposits and payments for each family. Additionally, most childcare software programs contain a feature that allows automatic billing to charge balances due for an individual family or all families at once to create a batch of payments. You can simply request payment with a few clicks of the mouse and the data is transmitted for processing. The payments are then automatically recorded on the family’s ledger.
What if some clients choose not to participate in automatic electronic funds transfer to pay tuition and fees? Daycare software is still a useful tool. Many daycare software programs will automatically send bills, reminder notices, and late notices. This saves you the hassle, time and energy. Childcare software also has the ability to generate a variety of reports to help you communicate with parents regarding child care center fees and payments.
Advantages of Automated Payment Collection:
Studies have shown that the use of childcare software with electronic billing and electronic payments increase successful payment collection by 90 percent or more. Some key advantages of automated payment collection are:
- Timely, Accurate, and Efficient Payment Collection: Daycare software has the ability to enhance cash flow. Billing software promotes a more reliable cash flow because it reduces the occurrence of late payments and bounced check fees and in so doing also reduces collection issues. When daycare business use electronic billing and automatic payment collection, the financial aspects of the daycare business run more efficiently and accurately.
- Improves Customer Service. Your clients will appreciate automatic tuition collection because it saves them time and energy. Most families will be pleased that they pay tuition fees securely and conveniently. The happier the client, the more clients you retain. As well, satisfied clients tend to spread the word; happy clients (word of mouth) are a great marketing tool.
Daycare software is a wise investment that will simplify your daycare administration functions thereby enhancing your daycare business and satisfying the clients you serve.
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