Prepaid Deposits for Summer Child Care

published | 4/25/2012

Procare Software Billing Tracking Software

The summer session at your child care, daycare or preschool may not include building sand castles, but with dozens of crafts, fun field trips and plenty of outdoor play, families may already be signing up. A great way to handle summer sign ups is by charging a prepaid deposit. Doing so has two benefits. First, you’ll know you’re getting at least some of the money up front; second, people are much more likely to keep their commitment when they pay a deposit.

According to the policies at your center, you may eventually credit the prepaid amount back to the family (toward their summer tuition) or, if the deposit is non-refundable, convert it to a fee, such as a registration or forfeiture fee. This may be appropriate if the child ends up being a no-show.

So let’s get out our sand shovel and dig in to see how Child Care Software from Procare can help you keep track of prepaid deposits. You may also be interested in a previous article on Tracking Summer Enrollment.

Set Up Deposit Categories

Watch Video: Set Up Deposits and Deposit Refunds

You start by creating special descriptions for the types of deposits you accept. Each one, like Deposit Tuition: Summer, needs a corresponding deposit refund, such as Deposit Refund: Summer.

Procare Software: Special Charge Credit Example

Record a Prepaid Deposit

Watch Video: Record a Prepaid Deposit or Deposit Refund

When a family is ready to sign up for the summer, simply post a summer deposit charge (to show they owe the deposit) and then a payment received, to bring their balance back to zero.

Procare Software: Ledger Deposit Payment Example

The Deposits button will show how much they currently have available in prepaid deposits.

Procare Software: Deposits Button Example

When summer arrives you’ll charge the family their summer fees, which results in a balance due. Since the amount was already paid, you’ll show a deposit refund on the next line bringing their balance to zero. Of course, if the deposit was for less than the full tuition amount they would need to pay the difference.

Procare Software: Ledger Deposit and Refund Example

Non-Refundable Deposits

Your center may have a policy of non-refundable deposits. In other words, if the child does not enroll the original prepaid deposit is charged off as a registration or forfeiture fee. In that case, post the fee and use the deposit refund to pay it off.

If you’d like to learn more, see our knowledge base article on Deposits & Deposit Refunds.

Procare Software: Ledger Deposit Forefeited Example

Share This Article

social-icon_facebook social-icon_twitter social-icon_pinterest

Related Articles

Track Summer Camp Enrollment with Procare Software

Track Summer Camp Enrollment

Close your eyes and make a wish for summertime. Green grass between your toes, warm sunshine on your shoulders, and long days where children’s playtime stretches to the evening hours are a few things you might imagine.

Read Article 
4 Easy Ways to Track Summer Camps

4 Easy Ways to Track Summer Camps

You can feel the warmth in the air—the longer days and sunshine can only mean one thing. Summer is on the way and soon your early childhood program will be buzzing with summer and day camp programs for children of all ages.

Read Article 
Tuition Express

Subsidized Child Care: Now Accepting Deposits

When it comes to subsidized child care, have you ever been caught holding the bag? That is, being responsible for a financial shortfall because someone else did not live up to their end of the bargain. 

Read Article 

Get Started Today!

Bring a new level of productivity to your center.

Request a Demo
Customer Reviews

Richmond, KY

We use Procare everyday and it's a great resource to use in our center. Using the dashboard is especially a great tool for childcare directors.

Procare Software User Support

User Support - Our Job is to Make Your Job Easier

Our U.S.-based support team is dedicated to providing solutions, training and tools with the option of remote support technology to diagnose and repair your issues.

We also have an entire support website dedicated to helping you succeed with videos, articles, tips, live webinars and more.