7 Steps to a Stress-Free Childcare Billing

If you’re like most childcare owners, you didn’t enter into this line of work for the money. You got into it because you enjoy working with children. What no one enjoys? The day-to-day operations of childcare facilities. To avoid burnout, we cannot overstate the necessity of setting up an automatic payment schedule using a childcare billing software.

Why is childcare billing software important?

Because it allows you to focus on more important concerns. A good childcare billing system not only helps you concentrate on student development but also parent relations. At Illumine, we recognise that time is a valuable commodity. That is why we’ve outlined seven steps to make childcare billing hassle-free.

Table of contents

  • Determine your tuition rate
  • Set up one-time invoicing
  • Set billing policies
  • Establish a billing frequency
  • Choose a mode of payment
  • Opt for a childcare billing tool
  • Have clear parent communication

7 Steps for Hassle-Free Childcare Billing

Childcare billing can be complicated and stressful, even if you have experience. Take notes on how you can run your business well.

1. Determine your tuition rate

To decide on a tuition rate, you will need to consider your company costs, deposit fees, and competitor rates.

Company costs

To start a daycare franchise, your incoming tuition payment must surpass your costs. Your company costs typically include payment for rent, supplies, food, infrastructure, permits, cleaning, marketing, and permits.

Deposit fees

Deposit fees ensure that you get compensated for holding a spot in your childcare facility for a kid who isn’t attending. These fees will help your company stay afloat during difficult times. Keep the costs of running a daycare center in account when deciding on a deposit fee. You can either charge a percentage of the tuition rate or a standard amount as the deposit fee. Illumine lets you customize the deposit fee per student, so you can create and share invoices with parents hassle-free.

Competitor rates

You should also examine how much your competitors charge. Parents generally base their decisions on the cost of daycare, so make sure your pricing is comparable to those of nearby childcare facilities. If you have a competitive edge over other centers, charge a higher tuition. By having an edge, we mean:

  • State-of-the-art facilities
  • Lower student to teacher ratios
  • Highly qualified EYFS teachers
  • Great safety policy

2. Set up one-time invoicing

It’s simple to set up one-time invoices with the Illumine childcare billing system. We can automate two different types of billing plans:

Attendance plan

The Attendance Plan is specifically intended to create invoices in situations where the computation must be based on the exact number of hours/days a student has attended daycare. A fee can also be applied to certain rooms. Late fee can be calculated depending on the number of days a student has stayed after the activity or programme has ended.

Tuition plan

A Tuition Plan is unique to each kid and may include different components based on the programmes in which the child is enrolled. The invoice line items in a plan can be added, updated, or removed at any moment.

You may also add personalized discounts to each invoice with Illumine. Parents get an email from the school with the invoice attached once you’ve submitted it.

3. Set billing policies

To run a profitable preschool, set the following regulations for childcare billing.

Billing policy

Ideal for

Partial payment

Flexible parents

Advance payment

Parents who work irregular shifts

Late payment

Tardy parents

Holiday policy

Traveling parents

School closure

Childcare owners to keep business running

There should be no exceptions to billing policies unless there is prior consent from the childcare owners.

4. Establish a billing frequency

Many childcare centers choose to bill parents weekly, biweekly, or monthly. You’ll need to decide the billing frequency while setting up your childcare.

  • Consider how often your childcare facility will need to pay employees when determining the billing frequency.
  • It’s crucial to examine the frequency of your own expenses, including your rent, taxes, and utilities.
  • Sending regular invoices to parents will generate a more consistent stream of money than if you invoice by semester or year.

You can create recurring fee templates with Illumine at a click on a button to simplify billing.

  • In the menu, select the fee template.
  • Choose the option to make a template.
  • Pick a name, a frequency (monthly, quarterly, half-annually, or yearly), and a date range.

And viola, you’ve established the frequency at which the parent will receive the childcare invoice.

5. Choose a mode of payment

Childcare owners no longer have to worry about paperwork, bookkeeping, or math, thanks to Illumine offering various modes of online payment to streamline daycare payment.

  1. NEFT: We do not store any NEFT information of the parents or the guardians and rely on the gateways to encrypt it.
  2. Credit card: We alert parents on the app when the invoice is due, and they can see the amount and make a payment with only a few taps. You can also apply credit notes on future invoices.
  3. Autopay: When a parent activates it, the Illumine Auto Payment system automatically debits the payment on the invoice due date.
  4. Supported gateways: Illumine works with both Razorpay and Paytm to handle payments. Once the preschool signs up for either of the gateways, the parents won’t be redirected to their portals and can save time by making the payment within the app itself.

6. Opt for a childcare billing tool

To keep childcare billing stress free, you should consider a childcare billing tool like Illumine.

  • Collect online payments, send automated invoices, generate billing reports and payment receipts 76% faster.
  • Digitize your payment collection process with one of the only childcare apps that takes 0 set up and commission fee.
  • Automate your invoice process and save 32 hours on manual billing and fee collection.

Illumine is your go-to solution for all the billing-related challenges faced by childcare owners.



Fear of digital payment fraud

All payments are protected with encryption

Fear of running out of cash flow to manage a childcare

Makes your cash flow predictable by automating the invoicing process

Manually remind parents for impending fee

Sets up recurring invoices and auto payments

Filing taxes can be time-consuming

Generate automated tax reports effortlessly

Track pending payments

Send reminders to defaulters and levy late charge on the fee automatically if the deadline has passed

Managing finances at a large scale can be exhausting

Monitor and track all your transactions from the admin dashboard

7. Have clear parent communication

Illumine’s in-app messaging tool allows you to connect directly with parents.

  • Send messages, attach photos, and answer any billing-related questions or concerns.
  • Parents are promptly alerted on the parent app when you send the message.
  • They may also click to the connect tab and then to messages to see the message.

Wrap up

Money is a touchy subject. While some issues can be resolved quickly via chat, more challenging payment discussions may be better handled in person. Some helpful hints may be found in our guide on strategies for effective parent communication.

One of the most effective strategies to ensure the success of your childcare center is to keep your finances in order. Get on a demo call with us to make your accounting journey easy, smooth, and fast. You can also start with a flexible plan that suits your business presently. Either way, prefer a smarter means of invoicing with Illumine today!



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