If your daycare, preschool, or other place of early childhood learning offers child care to subsidized families through a state or county agency (like DHS, DFACS, Head Start, etc.) you’re already well versed in the effort involved in tracking payments from each different agency. Using Child Care Management Software can greatly streamline the process by tracking the amount owed by each agency and handling parent co-payments.
In this article we’ll take a look at how Procare Software® can help you track, not only how much each agency owes, but exactly what item(s) they still owe you for – so you won’t be leaving money on the table. And we’ll show you how a single agency payment may be disbursed to cover dozens of children all at once.
Who Owes What?
The first step to success with Agency Accounting is to begin accurately recording who owes what. For example the agency may be charged once a month, while the parent has a weekly co-payment. In Procare this is accomplished by setting up recurring fees for each child in their Billing Box.
Once the standard rates for each child have been set up you’re ready to run Automated Billing which posts the recurring fees to all families and agencies at once. Then you’ll be ready to record in coming payments.
It’s easy to record a co-payment received from a family. You can process one payment at a time on the Ledger Card of a particular family, or if you have a stack of checks to process at once, use the Quick Ledger Posting feature. You can even turn on Receipt Printing to automatically print a receipt at the same time.
When a payment comes in from an agency (like DHS, DFACS, etc.) you’ll usually want to apply a portion of it to many different families. That’s where the Agency Payment Posting feature comes in handy. You can apply part of each agency check to a specific fee, for a specific child. For example, the check received in June may pay for child care fees, for Cindy Smith, from a couple of months back. This way you’ll be able to tell at a glance if the agency skipped a month and report the missed payment right away. Also, if the agency pays less than expected you can transfer the remaining amount directly to the parent, or write it off as an agency denied amount.