How do you invoice parents?

[mogs0]

Most of my mindees pay either cash or bank transfer at the end of each week for the hours they've used that week. The amounts are the same every week.

Previously, I've had parents who pay monthly but the amount is averaged out over the year (term time only) so they pay the same amount every on a set date.

New mindees are starting soon and mum wants to pay on a set date each month. I charge in arrears and not quite sure how to go about it. Do I charge for part weeks if they fall outside of the set dates? It sound a bit complicated to do it that way and there must be a simpler way of doing it that I'm just not getting .

There's a few options, but the simplest is probably to give her a bill made up to the end of the week before she pays you. Some months this will leave you up to six weeks in arrears though, which is not so good. So you could bill part in advance, part in arrears like this:

If she wants to pay on the 15th, you give her a bill on the 8th July for the weeks up to Friday 27 July (the last Friday in the month) at her standard rate. If there are any extras in July, add them on to August's bill.

A few years ago I had a period of time of bad payers. Learnt my lesson fast and now ask for monthly in advance. I've not had to invoice as its all paid at set hours, the same payment each month into my bank account. Any extras i email the cost and ask for them to amend their transfer. I don't accept cash or cheque anymore. Sorry I can't help directly with your question but wanted to mention the arrears part, to be careful!

Thanks, both!

MrA - that makes perfect sense and sounds like the simplest way round it.

Mybest - most of my parents currently pay by cash and all, at the moment, pay weekly so arrears/advance doesn't make too much difference - it just means I have to make sure I keep enough in my account for when my bills go out (all around the same date).

I invoice monthly in advance, payable by bank transfer. Any overtime etc added to the following month's bill.

I invoice monthly in advance as well - I think arrears is just too much of a risk. The bank transfer must go in by the last working day of the month otherwise I will not take the child on the first day of the month. However I invoice exactly for each month re number of working days and so on, so it's usually a different amount each month.

ZuleikaD - I sound the same as you (I think). My bills are different each month. For example, for July and invoice would have had contracted hours for July, a week unpaid for my holiday and charges for any overtime or extra days done in June.

However ... I have a few parents who prefer to pay the same amount each month, so I have done a calculation of what their fees should be for the year and divided by 12. They then get a statement each month, which shows a balance of how much ahead/behind they are on payments. They pay by standing order.

I invoice weekly in arrears and am paid by bank transfer. Could you not do it so you don't charge her in arrears but in advance, then it would be easy to work out and no risk of being left with 6 weeks owing?

I send an invoice around 20th (but always a week in advance), to be paid BY 1st of the month. This is in advance so on 1st July they had to have paid me for the whole of July. Any refunds/extras due for that month are then added to the next month's invoice.

Most of my families pay me a fixed monthly fee but I still send the invoice.

I also include a 'notes' bit at the top which shows important things like closures for that month (holiday).

Most of my parents pay by bank transfer these days, a couple by cash. I no longer accept cheques.