As a daycare provider, you are uniquely positioned to foster the health and growth of the babies, toddlers, and preschoolers who are entrusted to you. In addition to cultivating a safe and enriching environment and compassionate, well-trained staff, it is equally vital that your center be built on a robust business foundation that leads to sound payment practices and satisfied clients. Instituting recurring billing and invoicing into your business model is one of the most effective ways to strengthen both your back office and the finances that you can use to move your center forward.
Recurring billing defined.
The subscription or recurring billing model has gained popularity across the retail and service provider arenas in recent years. The concept is simple: You and the family agree on how much money will be withdrawn from a credit card or bank account, on which date it will happen and how often as well as when the payments will cease. Although changes can be made, they must be arranged between the parties involved. Furthermore, the system facilitates transparency with regular email communications that remind the customer of upcoming payments, send a thank-you once each withdrawal is complete, and provide an alert if the credit card is about to expire or if there is any other issue with the account.
Advantages of recurring billing.
It is no accident that the subscription model is so widespread. The following are the most compelling reasons to accept automated payments via a merchant provider in your daycare center.
- With recurring billing in place, you won’t need to chase down as many late payments because this model is, for all practical purposes, set-and-forget.
- Consequently, your relationships with parents and guardians will be friendlier because you can spend your time talking to them about their children instead of discussing bill resolution.
- From a customer perspective, financial management is also more seamless since parents have a clear idea of when their account or credit card will be tapped and exactly how much money they will be spending.
- On your end, a great deal of the guesswork is removed from budgeting and monitoring cash flow. When you know exactly how much money will be entering your account from the automated payments stream, you can come to more intelligent buying decisions that make purchasing supplies and enhancing your programs and services much easier.
- Security is heightened. At this point, your clients may still be resolving their bills at the close of each week. This results in long lines, aggravated staff members and frustrated parents. Moreover, there is a greater likelihood of data entry errors and lost receipts. Contrast this current scenario with predictable, streamlined payments protected by robust data protection and anti-fraud measures that comply with the Payment Card Industry Data Security Standard (PCI DSS). This set of measures protects both your center and the families you serve against security breaches, making the advantages of recurring payments apparent.
- Reliable tracking. When bills are paid manually, mistakes and oversights can occur. Additionally, it is more difficult to keep tabs on each family’s billing history. Should an issue or dispute arise, there is a greater likelihood of misunderstandings or confusion. Recurring payments eliminate much of the time and guesswork involved in this process because every detail is recorded in your point of sale system and can be easily retrieved with just a few clicks.
- Recurring payments let you optimize staff time. No longer will your valued employees need to toil over receipts and spreadsheets. They can instead use those hours to focus on giving their little charges the attention and high-quality services they deserve.
Perhaps most importantly, recurring billing enhances numerous aspects of your business, benefiting all of the parties involved. Automated invoicing promotes clarity, optimizes your relationship with your customers, promotes better financial management for you and your clients, and paves the way for the best possible programs and services. And after all, it is the welfare of the babies and children you serve that is always at the top of your mind.
With the clear communication, high security, and predictability that are built into a modern recurring billing infrastructure, you and your staff can furnish top-of-the line programs and a solid, professional business infrastructure that will help to keep your center functioning well for the foreseeable future.
