Improving your daycare’s gross margin is one of the first steps in increasing your income overall. You will want to reconcile these transactions with what you have in your accounting software so you can take note of and address any discrepancies. Limited liability companies (LLCs), partnerships, and corporations are legally required to have a separate bank account for business. Sole proprietors aren’t legally required to use a separate account, but it’s highly recommended.

Make teachers’ daily tasks less tedious, enhance the children’s learning experience, and save time with our advanced preschool management system. Access data from anywhere, generate real-time reports, process and track payments, and communicate in real-time with parents. If so, it might make sense to hire a professional accountant or tax preparer. They will help you estimate your tax payments, get set up with the right payment method, resolve issues, prepare your tax return, and otherwise make paying your taxes a stress-free process.

Establish a Bookkeeping System

Digital payment processing can help eliminate the number of outstanding payments while reducing the amount of time wasted on collecting fees and tracking dates of payment. As the world becomes more technology-driven your child care center needs to keep pace and adapt. Offering a variety of payment options is also a feature that parents will appreciate. Professional daycare accounting software can help you send invoices, track revenue, manage expenses and more. It can even send reminders to parents for late payment and accept credit card payments with ease. And taking care of the financial tasks related to running your business can be a headache.

Stay compliant with digital check-ins, health checks, and room ratio tracking. Systems are starting to introduce native apps for mobile devices that can be used for administrative purposes or to connect with parents. For example, some apps may allow you to track child arrivals and departures by asking parents to check in and out of your center with a tablet placed near the entrance. On the other hand, some apps are meant https://www.bookstime.com/articles/contra-expense to be downloaded by parents and can be used as a platform to exchange pictures and messages about their children with your staff. Allows users to perform billing and invoicing, track account balances and past-due payments, create and print payment reports and statements and post payment in batches. Offers support for multiple online and in-person payment methods, including cash, check, money order and credit cards.

Make billing easier for you and your families

Staying on top of your business finances is more than just tracking revenue in and expenses out. You’ll need to plan for taxes—typically around 30% of your revenue, after expenses—and make informed decisions when it comes to how you’re going to allocate your funds. If you want your business to succeed, you’ll need at least a basic understanding of business accounting and how to manage your expenses. You have your daycare set up and open for business, now how do you get families in the door? As with any small business, you’ll need to market yourself to attract potential clients.

While many are cared for by nannies, babysitters or other family members, nearly one-quarter (23.4%) of children under age five attend an organized daycare center. Families can connect and pay tuition online directly from their brightwheel app using bank account transfers (also known as ACH), credit cards, or debit cards. It is entirely up to your program to decide what payment methods to accept.