Do you accept checks as a form of payment in your child care business? If so, it is vital that you read this blog post very carefully. In fact, today I want to share some check writing policy tips with you that will protect your business cash flow.
I can remember how I felt when I received my first returned check about 10 year ago from a parent. When I received the returned check notice from my bank, I was furious. In fact, I could hardly believe that a parent (who sees me everyday) would do such a thing.
Moreover, I can honestly say that 10 years ago I was only in the business of childcare about four years and was not quite sure how to approach a parent about a returned check.
Now…keep in mind; I was also upset about this issue and wanted to call the parent and speak the thoughts that were running through my mind.
After receiving my first returned check from a parent, I decided to create a check writing policy and I still implement that policy today in my Child Care Center.
Today I want to share with you, 5 simple check writing policies tips from my Tuition Policy Makeover eCourse.
1. Be sure to create a check writing policy and issue the policy to parents upon enrollment.
2. Require that parents provide you with their driver’s license number when presenting a check to you; in case you need to seek legal action to collect the funds on a returned check.
3. Also, inform parents that you reserve the right not to accept their checks; in the event their check is returned to you.
4. Charge a return check fee. In the state of Missouri I am able to charge a return check fee in the amount of $25. Be sure to check the return check fee limits in your state. (click here)
5. Three-to-four days after receiving a check from a parent, check your bank account to assure that the funds have cleared your account.
Every time that you accept a check from a parent without the check being processed through a check reader or the checks is not electronically processed; you are taking a risk! So be sure that your parents know that you have a very strict check writing policy.
Accepting Checks is a Convenience for parents and in some cases…very risky for you!!
Less riskier payment forms:
– Credit Cards
-Money Orders/Cashier Check
For more tips on how to create a Check writing policy or how to deal with returned checks; be sure to subscribe to the Tuition Policy Makeover eCourse Today!
I look forward to reading your thoughts and comments about this week’s blog post.
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