Can't get them to understand....ugh

[daycare]

So I charge by the week and bill by the month.

I have been spending way too much time on accounting, so I have decided instead of trying to always remember to calculate each month correctly, that I would use this formula.

weekly rate x 52 then divide by 12 to get equal monthly payments. This way instead of paying more during the months that have 5 pay periods you will pay the same all the way across.

A few parents can only focus on the payment going up and therefore think that I am giving myself a huge raise..................

can you please tell me how else I can explain this?? Or am I doing something wrong here???

[Crystal]

Rate sheet:

Fees are based on there being 52 weeks in a year. Your rate is $150 per week.

$150.00 per week, multiplied by 52 weeks equals an annual total of $7800.00 Divided by 12 months equals a monthly rate of $650.00 per month.

$150 X 52 / 12 = $650.00

[daycare]

Rate sheet:

Fees are based on there being 52 weeks in a year. Your rate is $150 per week.

$150.00 per week, multiplied by 52 weeks equals an annual total of $7800.00 Divided by 12 months equals a monthly rate of $650.00 per month.

$150 X 52 / 12 = $650.00

this is exactly what I did and the funniest part is that one of the DCP complaining is a CPA........

I don't know how else to further explain it????

[Crystal]

Well, maybe you will have to sit down with a calendar and show them. Count the weeks with them. Then multiply it with them. Then divide it with them.

That is so odd that they don't get it. It's pretty simple!

[daycare]

Well, maybe you will have to sit down with a calendar and show them. Count the weeks with them. Then multiply it with them. Then divide it with them.

That is so odd that they don't get it. It's pretty simple!

I always say money makes people funny......anything to do with money and people get weird....

Trust me when I tell you I sometimes wonder if it is something else really wrong and they are just using this issue to take out their frustrations on me

[Nickel]

I do this to all my families and they are all on different pay scheduled. I have some that pay monthly and some that pay twice a month on the 1st and 15th. I explain to them that payments are scheduled this way to make it easier on everyone. Now their budget is the same every month and you don't have to calculate the days. This helps both of you. If you have the last 6 months worth of bills you can show them how each month was a different rate but they all add up to the same in the end. I spin it that it helps them keep a consistent budget each month instead of wondering how much there bill will be. And it also evens out in that they pay the same for Jan and Feb evebtho tradition ally they would pay more for Jan and less for Feb. I hope that made sense

[CrackerJacks]

That's the same formula I used when converting from weekly payments to monthly. I did have some parents question "why" it was increased. I simply let them know the formula and explained if they look at their calendar that not all months have exactly 4 weeks. Some have 4 some have 5 and some even have 3. Maybe tell them that

[SunnyDay]

Wouldn't their payment also be less than it was the months with 5 weeks? Funny how they don't notice that part

[daycare]

Wouldn't their payment also be less than it was the months with 5 weeks? Funny how they don't notice that part

so here is the thing....technically, there are not 5 weeks in a month. it's all about what day the month starts and ends on. Most months have 30 days, a few have 31, some have less.

What it breaks down to is how many friday's (pay periods) fall within the month.

[Country Kids]

so here is the thing....technically, there are not 5 weeks in a month. it's all about what day the month starts and ends on. Most months have 30 days, a few have 31, some have less.

What it breaks down to is how many friday's (pay periods) fall within the month.

So how do you bill for a partial week? Like if it ends on Wed. and starts on Thurs., Is that a daily rate?

I guess I'm not sure how you do a weekly rate, then a partial week?

[daycare]

So how do you bill for a partial week? Like if it ends on Wed. and starts on Thurs., Is that a daily rate?

I guess I'm not sure how you do a weekly rate, then a partial week?

so how I bill is by the month.

so for this month daycare fees covered from dec1-dec 31.
I don't charge a partial fee and then the next month takes over covering from the first to last day of the month as well.

All of my payments are due on the last friday of the month

[Country Kids]

so how I bill is by the month.

so for this month daycare fees covered from dec1-dec 31.
I don't charge a partial fee and then the next month takes over covering from the first to last day of the month as well.

All of my payments are due on the last friday of the month

OK, we all know math is really not my strong point-

In your first post you said you charged weekly but billed monthly.

I'm not sure how you do this then? Forgive me, please!!!!!

See I charge daily and bill monthly but I'm not sure how you bill monthly, if you charge weekly and don't do partial weeks.

Is this why your parents are maybe getting confused?

[daycare]

OK, we all know math is really not my strong point-

In your first post you said you charged weekly but billed monthly.

I'm not sure how you do this then? Forgive me, please!!!!!

See I charge daily and bill monthly but I'm not sure how you bill monthly, if you charge weekly and don't do partial weeks.

Is this why your parents are maybe getting confused?

sorry I am confusing you...now your making me think I am doing it wrong...lmbo

so lets say I charge 100 a week. there are 52 weeks in a year. forget about long and short months. flat out fact, there are 52 weeks in a year. so to get my monthly rate, I:

then take the weekly amount of $100 a x 52weeks = $5200 for the year
there are 12 months
divide $5200 by 12 you get $520.00 a month.

This is for those parents who are all paying monthly.

If I charged by the week and billed the way I am now, their bill would be more some months and less others,

example feb bill would be 100x 4= 400
then march comes and there are 31 days so they would pay 100x 5= $500 that month.

The formula that I am now using weekly rate x 52 divide by 12 will divide equal payments for them and the parents will have the same monthly payment each and every month. does this help now????

[Country Kids]

sorry I am confusing you...now your making me think I am doing it wrong...lmbo

so lets say I charge 100 a week. there are 52 weeks in a year. forget about long and short months. flat out fact, there are 52 weeks in a year. so to get my monthly rate, I:

then take the weekly amount of $100 a x 52weeks = $5200 for the year
there are 12 months
divide $5200 by 12 you get $520.00 a month.

This is for those parents who are all paying monthly.

If I charged by the week and billed the way I am now, their bill would be more some months and less others,

example feb bill would be 100x 4= 400
then march comes and there are 31 days so they would pay 100x 5= $500 that month.

The formula that I am now using weekly rate x 52 divide by 12 will divide equal payments for them and the parents will have the same monthly payment each and every month. does this help now????

Why didn't you say this in the first place-::::::::::

I totally get the whole monthly thing being the same and not even going to bring up the weekly thing as I really don't understand the weekly but billing monthly.

All providers here just bill weekly (pay at the end of the week) type thing.

Now that I love my daily rate, I have been toying with the idea of montly billing but billing for 48 weeks (the time I don't charge for) and going from there. Would stabilize it even more for me!

[Blackcat31]

How about if you simply stop using the term "monthy" and have daycare families pay by the week in either 4 or 5 week intervals.

Leave the word "month" out of it as it is obviously what is thowing everyone off.

I would say I charge by the week and parents are expected to pay me in 5 week intervals or 4 week intervals.

Why even mess with monthly when it really isn't monthly at all....kwim?