What do you actually DO with deposits?

[hollyberry]

Hi all

I've decided I will charge a deposit to hold a space if someone wants one and that it will be equivalent to a month's fees. I then want to hold onto it so that if anyone tries to dash off without paying, I've already got the last month's fees.

However, how do you 'hold' that money?!! I don't take cheques (and it could so easily be cancelled) but I do take bank transfers and childcare vouchers. If they transfer the money into my account it will disappear into all my outgoings.

Should I set up a separate bank account just for deposits which I know I can't touch and which no other transactions go through?

Thanks - any help/advice on how you guys do it would be fantastic to hear. xx

[maryp0ppins]

I take NON refundable deposits so if they decide not to use me it's mine anyway. I also charge in advance SO When the deposit is payed to me I use this as their first months invoice money then give them there next invoice the last week of the month ready to be paid to me by the 1st of the month....if money is not paid I hold the right to refuse childcare until money is in my account!! This way they would never really owe me money if they did do a 'runner' as I would not have minded for them. This is they way I look at it and the way it all works best for me.:)

Hope this makes sense?!?!?

[hollyberry]

Yes, thank you MaryPoppins, that does make sense. But where do you actually put the deposit - do you bank it, do you put it in an envelope, do you have a separate account for it - that's what I'm trying to get at. I fear if it goes into my usual business account it could get caught up in my normal outgoings and then when the last month comes, I've already used it (iyswim lol!!!!).

[sweets]

the last time i took a deposit which was to be used for the childs first months fee once they had started coming, i cashed the cheque then started an online bank account with ING and transfered the money into it.

Made it easier as it wasnt in my everyday account to spend ;)

once the child started i just transfered the money back.

very easy to set up an online account.:thumbsup:

[jane5]

I have a separate account which I put all deposits into (I have dipped in and borrowed it though as I am not that disciplined :blush:)

I take a 4 week deposit and hold this for payment for the last 4 weeks of care in the notice period, I also take a months fees in advance. This way if they leave without giving me notice, I have 4 weeks notice money so my income would not just stop if I was expecting it. If the notice money is used in the 1st month you may not work without being paid, but I rely on my next wage iykwim. (I listened to the wise words of rickysmith :D )

I do not put a deposit down as income as I will not earn it until the last 4 weeks of the contract, but if some one paid a deposit and then didnt want any care it would then go into my accounts as a non refundable deposit. (I actually dont know if this is correct but I am sure someone will tell me if it is wrong).

[mummyMia]

I just signed on my first mindee and mum paid deposit for 4 weeks into my normal childminding account. I have already spent half of it even though lo has not started yet. I needed to buy lots of things like extra highchair, doubles seat for my P&T, bedding for my travel cot, etc. The deposit is non-refundable so I will not need to pay it back. The deposit can be used for the last months fees so spending it now means I will have to work a month at some point in the future with no income. I really needed to buy these things because I am newly registered and don't have everything so I didn't really have a choice!

[Zoomie]

A few years ago when I used to save money, I opened up a number of on-line bank accounts for my various savings.

Sadly I bought my house and am now up to my eyeball in debt ...... (sorry going off on one :blush: ).

But anyhow I now use one of these bank on-line accounts to transfer the 'deposit' to. I also recently signed a contract that was for the deposit plus first weeks fees and I have transferred the whole lot to this account. When the child starts in Sept, I will transfer that first week's fees back to my everyday account, as that is when the money will be 'earned' by me.

HTHs