Saving money can be just as good as making money. And for childcare centers, improving ROI can be as simple as implementing automation into your workflows. The reality is, a childcare business takes many hours of support staff time to operate. From billing to staffing to supplies ordering, childcare management is full of tedious tasks.
Return on investment (ROI) means using your resources more efficiently to lower expenses and therefore increase profits. For most childcare centers, staff is their largest expense. Cutting back on those manual processes and putting those staff hours to better use can help you improve your ROI.
Here’s a look at 5 ways that automation can boost your childcare center’s ROI.
1. Get your bills right without using precious staff time and cut potential losses
Billing is a huge time suck for childcare administrators because each child might have different attendance arrangements, discounts and other billing challenges. Even small childcare centers might feel like they’re pulling their hair out trying to figure out how to bill more effectively.
Automation is the key. When you tie your billing into your other factors, billing becomes a breeze. iCare Software’s rate chart modeler is the most advanced on the market. When you set up your instance of iCare, input your various billing models once and then apply the right one to each student. Because iCare also serves as your payment processor, the software can automatically bill your customers via credit cards or ACH.
This automation is crucial for your business to avoid the hassle of preparing invoices. And, because it’s automatic, it feeds right into the next process you should use automation for: direct deposit.
2. Use Direct Deposit to automate payments and completely eliminate bad debt
Once your billing is automated, you can automate your payment collection process. And when you automate your payment collection process, you can eliminate bad debt and improve your financial situation.
Outstanding bills can upset your balance sheets. You’ll still have money going out for all your expenses, but your money coming in won’t be what it should be. This unbalanced ratio can cause serious financial struggles. Plus, if you fail to collect on time, it becomes more difficult later on to collect that money that customers owe you.
Not only are automated payments good for you, but they simplify things for your customers as well. Parents won’t have to worry about writing a check, going online to make a payment or otherwise taking time out of their busy lives to pay your childcare center. Automations can also provide important customer satisfaction factors.
3. Automated monthly and year-end tax statements
Another aspect of billing that is important to automate is your monthly and year-end tax statements. Parents need to have these statements for their records and they need them delivered promptly. But for administrators, this can mean pulling manual reports and preparing statements for each customer monthly. It’s time that can certainly be better spent elsewhere.
Childcare management software offers you automated monthly and year-end tax statements. No more spreadsheets, mail merges or other complicated billing processes. Instead, automate the process and enjoy your newfound time and cost savings.
4. Payroll based on staff attendance/hours
Your staff and teachers are your most valuable asset. As such, you need to ensure you pay them appropriately. Just like your customer billing, payroll needs to be tied into your attendance tracking system for staff.
Otherwise, you’ll be inputting the data manually to your accounting system to generate checks. It’s a lengthy process that frankly doesn’t need to be.
Automate your payroll operations using childcare management software. The process looks much like your billing where you’ll input your staff rates and enjoy an automated payroll process you can’t beat.
5. Simplify licensing documentation through alerts and allowing parents to input information online
The enrollment process is likely lengthy for both you and the customer. And really, your administration team doesn’t need to be there while parents fill out paperwork. Instead, move your paperwork online.
This way, there is less room for error when copying the information over from paper forms. Parents will love being able to complete the paperwork at a time that is convenient for them from any device and your center’s childcare software will update with that information automatically. It’s a win-win for everyone involved.
Additionally, when you need to pull together documentation for your licensing, you’ll have it all in one easy-to-use report.
Ready to start automating your childcare center to optimize your ROI? Schedule a demo to see how iCare Software can serve you.