The Childcare Management Blog

The most significant expense for childcare providers is labor, typically representing 70% of your budget. How much of that goes toward billing?

You probably pay a person or team to enter data and keep customer files up to date with tuition, fees, and other charges. Then you pay for paper, ink, postage, and time spent processing payments as they arrive.

There is no successful business without a budget. A childcare business, in particular, has high costs due to licensing requirements, labor costs, and location-specific costs. Monitoring your income and spend lets you plan ahead and identify unnecessary expenses you can safely remove from your spending.

Manually administering the payment circle can leave you with unpaid invoices, payments that fail to make it to the bank, and missed late fees. It just takes too much time and effort to keep up with billing, invoicing, and payment processing.

Daycare.com states that one of the most common problems childcare facilities face is nonpayment. Issues occur most often when operators allow families leniency in paying bills, which seems like the right thing to do when money is tight, but actually harms the business in the long run.