Payment arrangements

[snufflepuff]

At the moment the parents pay me equal amounts each month (hourly rate x number of hours contracted per week x 48 weeks to allow for my 4 weeks unpaid holiday / 12 = set monthly fee)
A parent has just asked to increase their hours so i'm wondering if I should suggest changing the way they pay at the same time. I'm just thinking that while it is nice and easy to have equal amounts each month paid in by standing order, it can cause problems when contracts change or end. It takes a fair amount of calculation to work out how much parent has paid over the course of the year, how much childcare they have received, and who owed whom money.
To those who invoice for the hours they expect the child to attend in the following month- do you find having different amount each month is a problem for anyone? Do the parents struggle to remember to change their standing orders/ bring the correct money each month? Do they struggle when you have a long month therefore more to pay? Do you struggle when you take holiday and therefore get paid less?
Wow thats alot of questions!!

[funemnx]

I charge hourly fees, payable in advance. I sit down and do my invoices around 25th of the month and hand them out. These include any overtime from the month before. Quite a few parents pay by the vouchers on-line now and I think it's great! I'm usually paid on time, the parents that pay by check don't usually have a problem with paying different amounts each month, even in the long holidays. I'm always broke when I have a holiday but who isn't :laughing:

[curlycathy]

I charge hourly in advance too. I issue invoices around 20th of the month. If I've had to take any unplanned days off (sickness etc) during the previous month I put this on to show the reduction. Works OK - my parents are all using childcare vouchers and they dont have a problem with differing amounts. Some months I get more money, some less hey ho!:)

[lovemyprams]

I invoice parents 1st to last day of month. Takes a while to work out everyone's invoices especially when some are term-time only and retainers are paid in school hols. I charge daily in advance and hourly for before & after school.

I tend to type up 3/4 months worth in advance and had out to parents (this takes quite a long time as I have roughly 8 sets to do). However, once done I can forget about it for a few months!:clapping:

I know its different amounts each month but I prefer this as I know I am paid the right amount for the work I do and have nothing to work out if a parent leaves. If I have any sick days (only had 1 day in 8 years!:clapping: ) then I will refund on the following months' invoice.

I have never had any problems working this way so will continue working this way! Parents pay direct into my account 1st of the month or before and for one parent who pays by cheque - they pay 7 days in advance to allow for cheque to clear.

Hope this helps.:)

[leeloo1]

I do the same as you, except I charge a daily rate... oh and get paid 52 weeks pa.

So, daily rate x 52 / 12 = nice regular standing order each month. :)

I do tell parents that I arrange payment like them to make it easy for them (which it does, but its also good for me as I don't have to do invoices each month!) but that it may mean their final invoice is slightly higher or lower than usual.

Then, when parents give me notice they're leaving (if under a year) I work out how many actual weeks I've had the child vs how much they've paid as the standard amount and tell parents final payment will be XXX. If I'd had the child for more than a year then I'd assume it'd worked itself out and just have final payment as usual.

Obviously different if hours changing each month etc, but in your position I'd work out how much paid/owed and have a tallying up invoice ready for when you change/amend your contracts for the additional hours, so you know that as of the contract date change it was all sorted.

Any help??

[Millenium]

Like others I issue invoices a few days before month end for the forthcoming month. I have payments by BACS but these are not done as standing orders, they simply go online and do a standard bill payment transaction. With those who pay by vouchers, they just pay whatever the amount is over the £243 either by cheque. BACS, or additional voucher payments.

I like to have payment for what I am working - no more and no less - and have been wary of averaging bills out. I have never actually offered it and so far never been asked.

[rachelle]

Mine go out around 25th of month for the following month via email. I ask parents to acknowledge receipt of email, if not it gets printed off and put in child's bag.

I only accpet payment in cash or direct transfer into bank.(icluding vouchers) I have 2 who transfer straight in and 2 who prefer cash. Chqs don't work for me as no branch of my bank in the village and can be 2-3 weeks before I get to the one in town. Cash is okay as can build up and then be banked without affecting the parents.:)

[youarewhatyoueat]

I ask for vouchers to be transfered every 2 weeks in advance, I prefer every 2 weeks instead of monthly as its really easy to keep track of and I don't have to wait a month for any extras.