Inspirational and Empowering Child Care Business Owners To Build Successful Child Care Businesses

Posts tagged ‘late payments’

Hand Written or Computer Generated Receipts?

receipt bookWhen parents pay you for child care services, they will expect to receive a receipt for tax purposes in a timely manner.

Furthermore, it is vital that you are diligent about collecting payments on time, issuing receipts for payments and documenting your business income.

There are two ways that you can issue payment receipts and they are as follows:

  • Purchase a receipt book for less than $3.00 at your local office supply store and give parents hand written receipts for their weekly or monthly child care payments
  • If you enter your tuition payments into a financial software, you can also issue computerized receipts

 

I have implemented both methods of issuing receipts and I strongly recommend that you use the method that works best for you.

Be sure to include the dates of service that the family is paying for, the child’s name, parents name and write your business name on the receipt. Also, if you are using a receipt book, be sure to purchase a receipt book that contains a carbon copy.

A computerized receipt is more professional looking, however, please note that you may use more printer ink.  Collecting payments and issuing receipts, is a vital part of your tuition collection process.

Tip: When issuing receipts, be sure to attach a copy of your tuition policy, to be sure that parents are well informed of your Tuition Policies. For more Tuition Collection tips, sign-up for the 5-Day Tuition Policy make-over eCourse.

Which method do you prefer to use; Hand written or Computerized Receipts? Leave your comment below:

Til Next Time……

Shiketa

FIVE ESSENTIALS FOR COLLECTING TUITION by Karen Marx

Timely TuitionThe following post is a Guest blog post by Karen Marx of Timely Tuition, LLC.

Collecting tuition may be one of your least favorite jobs.  But without enough money coming in, you can’t do all the other things you love.

Here are 5 tips to make collecting tuition a little easier:

1.       Give yourself permission:

You are running a business.  You have a right to be paid for the excellent service you provide.  Any time you feel guilty or reluctant to talk with a parent about payment, remember all of the things you purchase for your center and how you can use the money to improve your service or give your staff better training.  Parents agreed to pay you a certain amount when enrolling their child.  You are simply asking them to keep their word.

2.       Keep it simple:

Create policies that are simple to monitor and easy to follow.  Consider late fees, vacations (yours and students’), sick days, late pick-up, deposits, enrollment fees, and supplies.  Be strategic.  For example, charge annual fees in August for everyone, instead of tracking individual family’s anniversaries.  As much as possible, set up charges so that families pay the same amount every billing cycle.

3.       Put it in writing:

Regardless of the size of your facility, be sure to have a written policy outlining your expectations and the consequences for failing to meet them.

4.       Set the tone:

Go over your payment policy with new parents.  Be polite but firm about your expectations.  Don’t apologize for your prices or fees; instead explain the benefits you offer.  “The supply fee will cover all Monica’s art supplies for the year.  Expect to see some really creative projects come home.”  Require parents to initial key points and sign the policy before enrolling their student.

5.       Be consistent:

This cannot be emphasized enough.  Set your policies and expect them to be followed.  Follow up on consequences (like late fees) immediately and consistently for every parent, every time.  If you don’t care enough about your policies to follow them, neither will your parents.

Would you like a free review of your tuition policies?  Contact Karen@timelytuition.com for more information or visit Karen’s website at www.timelytuition.com. Would you like to be a featured expert or submit a guest blog post? If so, click here to review our theme and submission procedures.

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