Payment in Advance - so confused!

[Thelongfamily]

Hi - I have just starting charging in advance but I am getting abit confused! I have taken 4 weeks money from the parents and they are due to give me another cheque later today (just started today). Does this mean the first payment is for the deposit to keep for the final month when the contract ends and the payment today to cover February? Sorry I didnt make it clear to the parents and wasnt expecting another payment today!

Also what happens about odd hours then worked during February not covered by the advance payment? Do I do an invoice for end of Feb asking for this and the advance payment in March?

sorry if I am being silly!! :laughing:

Thankyou!!

[JCrakers]

Everyone works differently but this is what I do.
When a parent signs the contract I take a deposit which is then taken off thier first months bill. So if they sign the contract in August for an October start the deposit is taken off their October bill.

Payments are made on the 1st of the month (or whatever date suits them) for the month ahead. Then the month is paid for. If they decide to end the contract the month ahead is still paid for. This covers me in case they decide to do a runner.

But you could decide to keep the deposit until the end of the care which is what seems to have happened. When the contract is finished give the deposit back or minus it off their last bill.

If they ask for extra hours then I add it onto the next bill. Or if they wish to pay for it then, thats fine

[Mouse]

It sounds as if you have taken a deposit and a months fees in advance.

If the deposit is to come off the final months bill, you need to be strict with yourself about setting it aside until then, or you'll have no money for the final month they are with you!

I do what Bexc does. I take a months fee as a deposit, which pays the first months bill. Payment is then due in advance, on the first of each month. If there are any adjustments to make in a month (ie extra hours or a refund for some reason) I put them on the next months bill.

[candy cat]

i do in advance first of month.....any deposit gets taken of first invoice....far easier for my brain x

[maryp0ppins]

It sounds as if you have taken a deposit and a months fees in advance.

If the deposit is to come off the final months bill, you need to be strict with yourself about setting it aside until then, or you'll have no money for the final month they are with you!

I do what Bexc does. I take a months fee as a deposit, which pays the first months bill. Payment is then due in advance, on the first of each month. If there are any adjustments to make in a month (ie extra hours or a refund for some reason) I put them on the next months bill.


DITTO :thumbsup:

[Thelongfamily]

Thanks so much everyone - I just presumed the first payment would go towards the first month which is why I was thrown when the parent then said about another payment! I will have to decide what to do now!

[Wendybird]

Let them pay you and hold the 4 weeks for the end of the contract! This way you always have the 4 weeks notice period paid for and you will never have to chase the money. Presumably they are paying you for February now.

I always invoice for the following month on the 20th with payment due in my account by the 1st. I have a form I use with each months hours and anything that needs to be added or refunded goes on the next invoice. For example, I was ill last week one day and don't charge when I have to close. I will add the refund to March's invoice as they have already paid for February. Invoicing this way and taking the 4 week deposit up front means I am never left out of pocket. After being messed around by my first family I've gotten really strict about it.