Do You Bill Your DCP's?

[wahmof3]

How many of you give your DCP bills for you fee & when do you give them?

My DCP pay at the end of the week for care, I am thinking about billing them so they aren't so forgetful

[Blackcat31]

I e-mail each parent an invoice on Thursday morning (using MMK) but the amount due is the same each week as I charge a weekly flat rate so the amount never changes. I send the invoice as a courtesy reminder and so that I can keep track of who paid so I can print off monthly/yearly statements.

[momofsix]

Both
My older families that pay hourly are given a bill. Newer families that pay by the day know what to pay.

[Country Kids]

Yes, I do bill. I was billing hourly so I needed to let them know how much they owed. Now I'm billing a different way that the parents can figure out but I still bill them.

The reason I bill is I have a hard copy, plus what I have on minute menu in case anything would glitch/go down, and then I can give them a hard copy. Now in the event the don't keep it (most cases) I can print it still from MM at the end of the year. Before MM (last year) I hand added at the end of the year all the parents bills to give the a yearly total, didn't take long but I love MM now.

My question is if you don't bill them what do they do in the case they are audited and have no proof of their childcare bill? Also, if we are audited wouldn't we have to proof that is how much the parents are billed for? I mean I know its in our contracts but don't we need a hard copy of some sort?

[wahmof3]

My question is if you don't bill them what do they do in the case they are audited and have no proof of their childcare bill? Also, if we are audited wouldn't we have to proof that is how much the parents are billed for? I mean I know its in our contracts but don't we need a hard copy of some sort?

Good question, never thought of it that way. I was just using the cancelled check as proof.

[daycarediva]

I keep a very detailed calendar that has attendance spaces, as well as time in and out, any expenses I had and an envelope to save them, etc. I give each parent an invoice thursday PM. Some have varying payments (for additional hours) and some are the exact same every week. I also give them a receipt at the end of the month saying that they paid xyz and a yearly tax statement. I have two parents who are self employed that file quarterly, some that just claim the standardized deduction and never use my tax id, etc.

I stopped doing the invoices for a bit and only did them in case something was different, but then I got a couple missed payments.

[Blackcat31]

My question is if you don't bill them what do they do in the case they are audited and have no proof of their childcare bill? Also, if we are audited wouldn't we have to proof that is how much the parents are billed for? I mean I know its in our contracts but don't we need a hard copy of some sort?

Why would you need proof of a bill? If you charge a flat weekly rate or even a daily rate and you have a contract stating how much they will be paying and then have receipts of what was paid to you.

Why would parents need proof of billing either? They have cancelled checks and/or receipts or the yearly statments stating how much they paid out.

I keep admittance/enrollment forms for each child, my MMK year-end statements and my prepared taxes (including scanned copies of my Target/grocery store etc receipts) and that is it. I keep nothing else.

[Crazy8]

I don't do bills or receipts unless they want them when paying cash (their check can be their receipt). Would be just too much unnecessary paper for me!! I do however keep a statement of their account that I can print at any time. I give it to them at the end of the year with my info and EIN on it. Parents who use the tax saving plans thru their jobs need it monthly so I just print it monthly for them.

With a lot of new families I am thinking of posting a reminder on my FB page every thursday. I know they are all on there all the time but I don't usually have an issue with late payments either.

[MarinaVanessa]

I e-mail each parent an invoice on Thursday morning (using MMK) but the amount due is the same each week as I charge a weekly flat rate so the amount never changes. I send the invoice as a courtesy reminder and so that I can keep track of who paid so I can print off monthly/yearly statements.

I also use MMK and all families get their reminder emailed on Thursdays as well (payday is Friday for me). FT families all get billed the same amount, PT families I bill based on each families individual schedule ... some pay more because they have changing schedules etc. and I take drop-ins so I always bill these clients as soon as they request the day.

I bill in advance because it helps remind me how much each family pays. As soon as the family hands my the payment, I insert it into the computer (MMK) and they print their receipts from work or home.

[AnneCordelia]

Up until last month I was sending out a weekly invoice regardless that the rate never changed. I stopped in August and love it. Its a lot of work to make up and send invoices.

[Country Kids]

Why would you need proof of a bill? If you charge a flat weekly rate or even a daily rate and you have a contract stating how much they will be paying and then have receipts of what was paid to you.

Why would parents need proof of billing either? They have cancelled checks and/or receipts or the yearly statments stating how much they paid out.

I keep admittance/enrollment forms for each child, my MMK year-end statements and my prepared taxes (including scanned copies of my Target/grocery store etc receipts) and that is it. I keep nothing else.

Even with a daily rate the payment changes monthly. I also do not charge for holidays/vacations/sick,personal for me. So that changes the totals also.

Some of my parents come just for preschool and then need childcare here and there so that also changes the totals.

Its just easier for me to bill.

[daycare]

I voted yes

all payments are made monthly.

I send out an invoice via-email on the 10th of each month prior.

All payments are due on the last friday of each month

[Blackcat31]

Even with a daily rate the payment changes monthly. I also do not charge for holidays/vacations/sick,personal for me. So that changes the totals also.

Some of my parents come just for preschool and then need childcare here and there so that also changes the totals.

Its just easier for me to bill.

It does make it easier in some situations to bill rather than just have them pay the same amount but still you don't need to keep track of what you billed parents, only what income you made or what money you actually got paid in the case of an audit.

I'm just saying what you anounts and when you bill probably isn't what the IRS is concerned with.

[Country Kids]

It does make it easier in some situations to bill rather than just have them pay the same amount but still you don't need to keep track of what you billed parents, only what income you made or what money you actually got paid in the case of an audit.

I'm just saying what you anounts and when you bill probably isn't what the IRS is concerned with.

So did you vote yes or no? I guess I'm confused because you said you mail an invoice every week. I guess I take that as still billing a parent.

[Blackcat31]

So did you vote yes or no? I guess I'm confused because you said you mail an invoice every week. I guess I take that as still billing a parent.

I voted yes, I do send out an invoice as a courtesy.

I don't keep a log of the invoices though for the IRS. I keep track of the total income I bring in (using MMK) with the year end statement option.

I think we are on the same page, just looking at things from a different angle.