A Typical Mid-size Center can Earn up to $10,000 Additional Revenue through Late Pickup Billing

A Typical Mid-size Center can Earn up to $10,000 Additional Revenue through Late Pickup Billing

Improper and untimely billing is a major source of financial and operational headaches for childcare centers. And these headaches bring up many questions for childcare administrators, including:

  • Do you know if you are billing all the charges according to your rate? 
  • Are you missing some and don’t even know or find out when it’s too late to bill for that attendance? 
  • How much time do you spend calculating bills and reconciling ledgers? 

And because billing is such a time-consuming and manual process for many childcare centers, they don’t realize the impact of their missed income or don’t want to take the time necessary to change it. There are options though.

Billing challenges childcare centers face

There are a variety of factors at a childcare center that can make billing difficult. Yet, most of these items are necessary for your business:

  • Flexible scheduling by number of days and hours
  • Payment plans for annual fees
  • Discounts based on one or more factors such as siblings, family income, age, employee, and scholarships
  • Add-on charges for attendance beyond scheduled hours

The flexibility these billing types offer is fantastic for your customers. But for the childcare administrator, it means more manual work each month when it comes time to bill.

The great news for childcare centers looking to improve their billing is that iCare Rate Chart Modeler can automate even the most intricate of billing rules. Our engineering team is available to help you configure your rates.

Example of childcare software billing efficiency

Here’s one example where a center made $10,000 extra just by accurately billing late pickup charges. The childcare center had these late pickup charges clearly outlined in their handbook, but the administrative burden to collect these fees wasn’t worth it.

This center is located on a commuter route from a suburb to the city. They offered flexible days and hours to accommodate parents’ work schedules. 

They had flat weekly rates based on scheduled days and hours. However, if the child was picked up late after the scheduled hours, they charged extra by the number of hours and minutes. 

The total enrollment of the center was about 180 children, out of which about 130 came each day. On average, 15 children were picked up late. Using automations within iCare’s Rate Chart Modeler, the childcare center billed these parents an average fee of $3 for each late pickup. That is about $10,000 per year billed automatically without a minute of administrative work. 

Additionally, every late pickup bill includes the pickup and drop off times of that day for complete transparency for the parents, so they won’t ask you for attendance records to prove the bill.

See how you can start collecting your unearned income using the features iCare childcare software offers. Schedule a demo to learn more.

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