Child Care Accounting is Laborious if Not Integrated with Operations of the Center
iCare integrates billing, accounting, and operations – scheduling, attendance, and enrollments – most thoroughly. Talk to one of our consultants and find out how.
Child care Accounting will Relieve Your Biggest Pain Points
Finance Management
We make it easy to set up all your childcare and school-age programs. Let parents or administrators enroll the children.You’ll be able to control enrollment, class capacity, scheduling, staffing, and tuition fee billing with very little effort.
Every organization benefits from efficient and well-managed finances and your center or school is no exception.
To ensure that you are operating in the best financial state, iCare’s accounting software for daycare businesses offers features specific to your needs.
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Payment Processing
iCare provides a very flexible child care billing software. It includes:
- Many period options: Weekly, monthly, hourly, daily, bi-weekly and semi-monthly
- Source options: Schedule-based, attendance-based or a combination of schedule and attendance
- Rate options: Flat rates or rates based on a rate chart
- Setup options: Program-based and child-specific
- One-time or recurring
Tuition Billing
iCare provides a very flexible billing setup. It includes:
- Many period options: Weekly, monthly, hourly, daily, bi-weekly and semi-monthly
- Source options: Schedule-based, attendance-based or a combination of schedule and attendance
- Rate options: Flat rates or rates based on a rate chart
- Setup options: Program-based and child-specific
- One-time or recurring
- Skip bill for a holiday week or all 5th weeks when they happen in a month (in case your real rate is monthly and you divided it in 4-equal weekly payments)
Billing Grid
Through one single report, the Billing Grid, you can quickly and easily manage the tuition bills for the entire school whether the bills are one-time or recurring.
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Ledgers and Invoicing
iCare uses a banking-type of ledger system for receivables accounting instead of the invoicing method. All transactions charges, credits, payments and refunds are posted sequentially in the Receivables Ledger. This
means you don’t payments with charges. The Ledger keeps a Running Balance, which makes it easy to review and reconcile accounts.
iCare Childcare Management Software has accounting based on ledger, simple like your bank statement. Debits and credits are handled on a first-in and first-out basis. The Receivables Ledger is backed by a General Ledger and Chart of Accounts, making it easy to connect with a third-party financial system you may be using.
Built-in Accounting Actions
- Account reconciliation through edit and void processes
- Audit trail (who did what when) on all transactions even the edited and voided ones
- Edit/void history no transactions are lost even if voided
- Verification process for credit card and ACH transactions through processor portal
- Refunding credit card and ACH payments
- Email invoice, payment receipt, and statement
- Transfer transactions to fix mistakes in account setups
Miscellaneous Charges and Credits
You will most likely set all tuition charges to be posted automatically. But, here are some examples of charges and credits you may need to post individually or in a batch
- Field trip (this can also be automated through Lobby Questions features)
- Charge for school half-days and closing days for after school programs
- Holiday week credit
- School supplies
- Returned checks
Deferred (Escrow/Set Aside) Ledger
If you require parents to pay a deposit for say the last month’s tuition, you can do that via the Deposit Ledger. The deposit payment will be posted in the Deposit Ledger. At the end of the child’s term you’ll simply do an Apply Payment transaction.
Deferred (Escrow/Set Aside) Ledger
If a child’s bills are split between two parents, then both parents have separate ledgers.
This allows for accounting that is easy to understand and reconcile. In this case, a parent sees only her or his ledger.
Parents can choose to share their ledger with the other parent though. In which case, a parent will see two ledgers theirs and the shared one.
Subsidy Accounting
A child’s bill can be split in any number of ways between multiple private or subsidy accounts. iCare provides easy methods for splitting the bill and managing the accounts.
Subsidy Types
- State assistance subsidies
- Federal/DSS subsidies
- Military family assistance
- Tax subsidies
- Your grants or scholarships
- Parents employer sponsorships
Subsidy Accounting/Ledger
The subsidy account and ledger are like the private account and ledger, but with some differences and it includes methods for checks and reconciliation:
- The Running Balance for subsidy ledgers is calculated separately for each child. For private ledgers that is not the case.
- Splits for a private copay and subsidy account are easily set up and the Billing Grid Report makes it easy to measure your revenue sources.
- Subsidies frequently do not pay the amount you bill. In which case you must transfer the unpaid amount to the private account. iCare makes it easy to reconcile such issues.
- You can also view a family’s private and subsidy ledgers separately or combined. This gives you yet another features for easier reconciliation of children bills.
Bring together owners, administrators, teachers and parents with one childcare app.
Financial Reports
15 standard reports for various aspects of accounting and several emailing options for invoices, receipts and statements.
Balances
Outstanding account balances of all accounts.
Aging Report
Show as aging of balance of all accounts by weeks or months.
Total Charges/Credits Report
Summarized charges, credits, payments and refunds.
Fee/Billing Projection
Summary of bills to be posted in any future period.
Transactions
A detailed ledger for all accounts.
Billing Grid
List of all bills scheduled to run in the future.
Direct Deposits
List of all Recurring payments.
Declined/Settled Payments
List of credit cards and ACH payments.
Payment Listing
All payments and deposit tickets.
Yearly Tax Statement
Yearly Tax Statement for parents.
Account Statement
Formatted account statement for printing or emailing.
Deferred Deposits Balances
Deferred deposits (escrow account) balances.
Billing Summary
Billing totals grouped by date and revenue account.
Deferred Deposits Ledger
Deferred deposits (escrow) ledger.
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See how iCare’s childcare management application can help you today!
Tax Reporting
iCare has a very strong Accounts Receivable system. This is important because AR is closely tied to operations registration, enrollment in programs and classes, attendance, scheduling, and events.
Tax Reporting - Business
On the other hand, iCare doesn’t have an Accounts Payable system. But we have provided you a General Ledger and a Chart of Accounts. It’s under the Receivables Ledger of the AR system.
General Ledger: All RL transactions are posted in the GL using the double entry system. This makes it possible to export revenue numbers for journal entry in a financial accounting package.
Chart of Accounts: The default accounts in the COA are:
- Activity
- Bank Interest
- Discount
- Field Trips
- Miscellaneous
- Registration
- Sundry Items
- Transportation
- Tuition
Tax Reporting - Parents
iCare accounting reports include the Yearly Tax Statement for the parents. Parents can view and print it themselves or an admin can email to them or print it for them.
The Tax Statement is prepared on cash-basis. It is the total of all the payments minus refunds posted in the calendar year. It is not an accrual report, i.e., it is not based on posted charges and credits.
The Statement included the centeru2019s Tax ID and is ready for use for a parentu2019s tax return.
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