Tips for Managing Enrollment Finances in Daycare

Handling finances effectively is a crucial aspect of running a successful daycare.

Here are practical tips and suggestions to help you manage enrollment finances smoothly and professionally.

Leverage Apps and Software

• Use childcare management software like Procare, Brightwheel, or HiMama to streamline billing, generate invoices, and track payments.

• Apps can automate reminders, issue receipts, and keep financial records organized.

Establish Clear Tuition Policies

• Decide When and How to Collect Tuition: Choose a payment schedule (e.g., monthly, bi-weekly) that works for your business.

  • Example: Collect tuition upfront at the beginning of each month to ensure steady cash flow.

• Payment Methods: Specify accepted payment methods (e.g., e-transfers, checks, online payments) and communicate these clearly to parents.

Include Financial Policies in Your Parent Handbook

• Clearly outline your tuition rates, due dates, late fees, and other financial expectations in your parent handbook.

• Treat your daycare like a business: Having written policies protects both you and the families you serve.

Issue Receipts and Provide Tax Documents

• Always provide receipts for payments.

• At the end of the year, issue tax statements to parents summarizing their childcare expenses, which they can use for tax purposes.

Be Clear About Tuition Rates and Discounts

• Clearly state your tuition rates in your promotional materials, parent handbook, and initial conversations with families.

• Child Care Fee Reduction Program (CCFR): If you offer fee reductions through government programs, let parents know and advertise this as a benefit of your daycare.

Enforce Payment Policies

• Late Payments: If a parent is late with tuition or requests extra care, ensure the bill is paid before continuing care. Do not allow unpaid bills to accumulate, as this could hurt your cash flow.

• Extra Fees: Outline charges for late pick-ups, additional care, or other services in your handbook and enforce them consistently.

Plan for Financial Reviews

• Regularly review your finances to track income, expenses, and outstanding payments.

• Consult with an accountant or financial advisor to ensure compliance with tax regulations and to optimize your financial practices.

Maintain Professional Boundaries

• Avoid making exceptions unless absolutely necessary, as inconsistent policies may lead to misunderstandings or parents taking advantage of your flexibility.

Keep Communication Trackable and Transparent

• Use email or childcare management apps for all payment-related communications to ensure a clear record of transactions.

• Avoid verbal agreements that could lead to misunderstandings.

To see our Enrollment Finances Excel Template, which shows how we track tuition, the Child Care Fee Reduction Initiative (CCFRI), and the Affordable Child Care Benefit (ACCB), as well as how we calculate the parent tuition portion with ease, please check this link:

For more information please check our Handbooks attached below