How do you work out fees ?

[Jenny2]

Hi new to this , not had my pre reg visit yet but have has two prospective clients today , one I hopefully fingers crossed is very lovely and eager , how do you all work out fees for instance if it's every day Mon-Fri for 8 hours a day , and payment is due the 1st of month do I work it out how many days that calendar month or do I work it out annually and if so how's it done. I will be taken a small deposit as well in case of any problems with later payments.
Cheers

[dolly1985]

I personally count every mon-fri in that particular month and charge in advance, so my invoice to the parents changes every month.

[funemnx]

I write an itemised invoice each month in advance - any additional hours are added on to the following months fees

[Snowwhite]

Same here, as i am not brainy enough to work out the fee over the year! I just tell parents that the fee may go up slightly each month or down slightly depending on the number of working days per month.I ask for cash if any extra hours for that month,and give parent a receipt for that, but if its extra hours such as the school holidays for this month then i added it onto July's invoice which parents had at the end of June

[moggy]

I always do it by calendar month, I count up how many days that coming month, invoice sent 2 weeks before payment due on 1st of the month for that month. Any extra hours are added to following month's invoice.

Invoice different each month, but not been a problem for anyone.

I'd never do an 'annual' thing as could get complicated if notice given during the year.

[loocyloo]

I invoice for the month and fees vary.

My problem is a mum who pays a set amount each month and then tops it up ... except this month I'm away for 2 weeks so i'm going to have to pay mum half back as it is apparently beyond her/the bank to change the payment! Grrr!

[Kiddleywinks]

I work out fees based on 48 weeks (full timers), then if parent wants to pay the same each month, divide the annual figure by 52 - that way I still receive a payment even when I'm on holiday.
You do need to keep a running total of fees due for care already provided against fees actually received, but I do this a, on a spreadsheet, and b, on the invoice.
If a parent gives notice before the full 52 weeks has been paid off, there will be a discrepancy so would make any overpayment due to a parent on the last week of care.

Same with term time only (39 weeks care divided by 52 payable weeks), although the discrepancy is more likely to be higher.

I wouldn't do it for a holidays only contract

[smurfette]

I work out fees based on 48 weeks (full timers), then if parent wants to pay the same each month, divide the annual figure by 52 - that way I still receive a payment even when I'm on holiday. You do need to keep a running total of fees due for care already provided against fees actually received, but I do this a, on a spreadsheet, and b, on the invoice. If a parent gives notice before the full 52 weeks has been paid off, there will be a discrepancy so would make any overpayment due to a parent on the last week of care. Same with term time only (39 weeks care divided by 52 payable weeks), although the discrepancy is more likely to be higher. I wouldn't do it for a holidays only contract

That's an interesting way to do it, like the idea of getting paid on hols! I guess you get slightly less each week though than if you charged weekly? Do u usually end up paying back much at end of contract? Just thinking i might try this!

At the mo I charge weekly, same amount each week so parents know, they have to make payment by end of previous week, either on a Friday in cash or to hit my bank account by Friday evening

[rickysmiths]

I work out fees based on 48 weeks (full timers), then if parent wants to pay the same each month, divide the annual figure by 52 - that way I still receive a payment even when I'm on holiday.
You do need to keep a running total of fees due for care already provided against fees actually received, but I do this a, on a spreadsheet, and b, on the invoice.
If a parent gives notice before the full 52 weeks has been paid off, there will be a discrepancy so would make any overpayment due to a parent on the last week of care.

Same with term time only (39 weeks care divided by 52 payable weeks), although the discrepancy is more likely to be higher.

I wouldn't do it for a holidays only contract

I do the same except I work out the fees for a year (taking my holiday into account) and divide by 12 so the same is paid every month. I keep a record of what is paid and what would be due and make it clear from day one that the parents might owe me money just the same as I might owe them some depending on where in the year they leave.

With Term Time only I work what the fees are for the 39 weeks and divide it into the months. I then apply my 1/2 fee for my 5 weeks annual holiday to August so the parent pays less in August when they are off (I don't charge for their 13 weeks holiday I charge a higher hourly rate for TTO) but I get some income rather than none and that seems to work very well. Also if they want to use any days in the holiday it is paid for in August my 'light' month. This is what I do for Teacher parents. However I will not annulise fees for part time before and after school who don't want holiday care the pay as they go. I won't annulise for weekly payers either.

[Chatterbox Childcare]

I multiply 52 weeks fees and divide by 12. I have 3 weeks paid holiday and if I took anymore I would credit the invoice for the month I took them.

[Kerry30]

I did the whole multiply by 52 and divide by 12 for a parent so they paid the same each month. Me being duh never took the 4wks hol off a year. But didnt take any holiday one year anyway. Parent then asked to change it to a monthly invoice. What a nightmare trying to work it out...never averaging it out again!! Told parent that i would change to monthly invoices at the end of 'her contracted year', as it was only a few months away. We all learn as we go!!

[TinyTinker]

I never like the idea of averaging it out over 52 weeks - as when they leave part way through a year it can be hard to work out if you owe them or they owe you any extra!

I just invoice for each calendar month, in advance - and like others add any extra hours for that month to next months! hoildays have to be notified 4 weeks before the event - that way I can include it on the invoice

[Jenny2]

I think as I want to be paid a month before the care I will work out exact number of days of care in the calendar month .

[MrsP2C]

I didn't used to annualise any fees but am about to start with 1 existing mindee & a new starter (both would be September to September contracts). I'm very busy term time but quiet in the holidays & always really struggle with the drop in fees plus like the idea of not working but still being paid for a few weeks of the year

[Goatgirl]

I invoice for the month and fees vary.

My problem is a mum who pays a set amount each month and then tops it up ... except this month I'm away for 2 weeks so i'm going to have to pay mum half back as it is apparently beyond her/the bank to change the payment! Grrr!

Personally I would carry any overpayment forward to the next invoice

Have a lovely holiday

[Kiddleywinks]

That's an interesting way to do it, like the idea of getting paid on hols! I guess you get slightly less each week though than if you charged weekly? Do u usually end up paying back much at end of contract? Just thinking i might try this! At the mo I charge weekly, same amount each week so parents know, they have to make payment by end of previous week, either on a Friday in cash or to hit my bank account by Friday evening

Oops, if a parent wanted to pay monthly, I'd divide the 48 weeks by 12 months, not 52 weeks d'uh!, it'd be 52 weeks if they paid weekly

You do get slightly less with each payment made, but it's made up with the payments made over your holiday periods.
By keeping a running total on the invoice of what's been due against what's been paid both you and the parent can see exactly who is owed what, particularly should notice be given.
Depending on when notice is given will depend on who is owed what - before a holiday period parent may still owe you, after a holiday period you may owe them.
I'll see if I can upload an example so you can see what I mean when I get back onto the laptop - DD's hijacked it at the moment ;-)

[smurfette]

Oops, if a parent wanted to pay monthly, I'd divide the 48 weeks by 12 months, not 52 weeks d'uh!, it'd be 52 weeks if they paid weekly You do get slightly less with each payment made, but it's made up with the payments made over your holiday periods. By keeping a running total on the invoice of what's been due against what's been paid both you and the parent can see exactly who is owed what, particularly should notice be given. Depending on when notice is given will depend on who is owed what - before a holiday period parent may still owe you, after a holiday period you may owe them. I'll see if I can upload an example so you can see what I mean when I get back onto the laptop - DD's hijacked it at the moment ;-)

Thanks that would be great!!

[loocyloo]

Personally I would carry any overpayment forward to the next invoice

Have a lovely holiday

thank you

I would usually, but it would take almost 6 months for this mum to use up the extra, as her fees are usually the same every month! and it gets very messy & complicated! ( I've done once already to use up some overpayment and ARGH! never again! )

[Kiddleywinks]

Forum accounts example.pdf

Hope this works

Edit:
Ok, it worked for me when I tried it, so should be ok.
There are 2 pages, the second page explains how it works, so if you decide to print it off you can compare the different examples.

I'm happy to answer any questions or queries if needed

[Simona]

Many cms opt for a monthly fee invoice by dividing the entire yearly fees by 12 months...it works well for them

This is usually done because they may get paid by Direct Debit....which in itself is a good way to ensure payments get into their accounts on time

BUT

the method has its drawbacks because hours can change and parents can give notice without us expecting it ...so they have to start all over again
The other small difficulty is that it is difficult to do the invoice this way for those who claim the 15 hrs of FE for 38 weeks
I am not sure if we can divide their fees by 52 weeks...I doubt it

Doing a monthly invoice is not difficult ...just remember that some months will have 4 weeks and some 5...but that is very simple to work out

You could still set up a standing order even with a monthly invoice...when the month has 5 weeks the parents top up the additional week

Kiddleywinks...I have really tried to understand the format you put the link for us to look at...very complicated ...is it not?
but we are all different so it may look easy for some