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Old 11-30-2014, 11:17 AM
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Ambrocia Ambrocia is offline
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Question Taking Over a Billing/Scheduling Nightmare HELP!

I'm taking over as the administrator of a daycare center. Everyone loved the previous admin who moved out of town. As I'm going through the books I see why. She gave away free daycare (30 mins here, 15 mins there, whole days even.) I found 9 people who weren't billed for time their kids spent in daycare in Nov. She also did al a carte daycare and billed people hourly even if their kid took up the morning and afternoon spots. Our employees haven't had a raise in over 3 years. It's embarrassing and they stay because of their love of the kids. They could make more at McDonalds with half the stress.

How do I fix this train wreck so I can balance out our income, give employees a raise and not completely upset parents. We have a wait list of around 30 kids so lack of demand is not an issue. Thank you!
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Old 11-30-2014, 02:12 PM
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Well with that waiting list you have part of the issue solved. I would get all parents paying what they should right away, if some leave because of it you have the waiting list to fall back on. With parents paying what they should, you may easily find money for raises. If you can't do them across the board, start with the ones you see really going above and beyond and those who have stayed the longest with the low pay.
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Old 11-30-2014, 02:13 PM
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Oh, I can relate to this! After I let go my previous director i realized billing was an absolute nightmare. Same thing-- parents weren't charged, some were given random discounts, and employees weren't being charged for their own kids at all (they get a big discount but are charged to cover for their food/care). And Parents are supposed to pay in advance but some were many weeks behind, so we were basically giving out free childcare.

We just started from scratch the first of the next week, and tried to find out best we could what parents owed by going through the recent attendance sheets. We didn't back charge parents more than what they owed for the past couple weeks, but since you have such a waiting list I imagine you could do whatever you want and just explain to parents that there were some "accounting errors" found during a recent review but the problem has been rectified. Give them their bill and if they don't like it, fine. Almost all of our parents were very understanding. We did have to issue a couple letters out to parents though, to sort of reiterate our payment policies and timely attendance and such.

Good luck and keep your head up, once you sit down with the books it will fall into place!
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Old 11-30-2014, 03:14 PM
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Do you all bill according to spots each kid takes or on hours they are there? We've kids coming from 10-3 and just charged an hourly rate of $6 but they are occupying a FD spot. Is this common practice?
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Old 11-30-2014, 03:20 PM
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I can't speak for a center only for a home, but once a child takes up a certain number of hours a week, I charge the full time weekly rate. Once they go over the top of those hours, I charge more. So say a child is here for 40-50 hours a week. I would charge my full time weekly rate for that which is XXX. If they go over 50 hours, there is another rate. If they are under 30 hours a week, I then bill for part time. But generally part time hourly rates are less than full time rates. So I may charge $3 an hour for part time, but my rate for 50 hours is $100. The part time would actually be more. The reason is that part time kids cost more, because they fill spots that a full timer would take and mess up the ratios.
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Old 11-30-2014, 07:11 PM
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Quote:
Originally Posted by Ambrocia View Post
Do you all bill according to spots each kid takes or on hours they are there? We've kids coming from 10-3 and just charged an hourly rate of $6 but they are occupying a FD spot. Is this common practice?
I charge based on enrollment, not attendance. The hourly rate is much higher per hour than the weekly rate, and there is a 9.5 hour a day limit. So, while I'm "open" from 7-5, none of my kids are here that long.

$6 an hour, would be $30 per day for those 5 hours. What is your weekly rate?

A good time to change rates and your rate structure is the first of the year, since it's so close anyway. Maybe do a little research on rates in your area, and then change them for everyone together. Giving people limited options (kind of like toddlers) might make it easier.
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Old 12-01-2014, 06:58 PM
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Quote:
Originally Posted by Heidi View Post
I charge based on enrollment, not attendance. The hourly rate is much higher per hour than the weekly rate, and there is a 9.5 hour a day limit. So, while I'm "open" from 7-5, none of my kids are here that long.

$6 an hour, would be $30 per day for those 5 hours. What is your weekly rate?

A good time to change rates and your rate structure is the first of the year, since it's so close anyway. Maybe do a little research on rates in your area, and then change them for everyone together. Giving people limited options (kind of like toddlers) might make it easier.
The half day rate is $21 a day for infants, $15 for preschool.
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Old 12-01-2014, 07:32 PM
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The half day rate is $21 a day for infants, $15 for preschool.
Wow that is crazy low!
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Old 12-04-2014, 07:17 PM
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Start Fresh........
If you can figure out what you want within the week and get it all typed up and printed for every family enrolled to sign new contracts after reviewing handbooks, then make new policies effective the first of the year.

I wouldn't go back at all except for those who are behind on payment and tell them they have to follow new policy to catch up. If someone is really a few weeks behind decide if they can't start paying now they're done immediately.

Start fresh with your new policies. You'll have to work fast to get it done in time. I usually update now but hand it out in January and make it effective the end of January just so that everyone signs the new years date on the paper! LOL.

If you have any specific questions, pm me. I have a large home daycare of three years and every year have changed things. I have 3 staff and eventually would like a small center but it's a better fit right now to keep it in our home.
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Old 12-04-2014, 11:18 PM
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Thank you!!
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