What's inside the Book?
Section 6. Money Matters
Registered childminders need to keep accounts of the money they earn (income) and money they spend (expenses). Creating accounts can be quite daunting the first time you need to do it, so we have created a detailed guide. This section has example documents showing how to layout your accounts, instructions to help you work out the maths and advice on setting fees.
Section 6 also has a step by step guide on what to do when parents don't pay their fees, including example letters and tips on claiming through the small claims court.
Contents
- Setting Fees
- Payment
- Methods of Payment
- Non Monetary Rewards
- Providing Receipts
- Payment Record
- Late Payment
- Letter to State Outstanding Fees
- The Parent's Response
- Deciding Whether to Pursue a Claim
- Small Claims Court
- Preparing Claim Details
Quotes from this chapter:
Late Payment of Childminding Fees
As a childminder you are offering a professional service and as such you should be able to expect parents to pay fees on time. Unfortunately some parents do not pay on time, they may be forgetful or they might be taking advantage of your good will.
To encourage parents to pay on time and prevent a problem occurring make your payment policies clear from the start. The way in which fees are paid and who is responsible for payment, and whether an additional fee for late payment applies can all be written into the contract or given as a policy sheet.
It is important to discuss late payments with parents, there may be a problem that you can resolve together, such as a different payment date that corresponds better with the date they are paid. (See the Section 4. Working in Partnership, Assertiveness for discussions with parents.)
If a parent is forgetful there are several things you can do to help: provide a written bill each month/week detailing the amount due and the date it is due on. Or, help them set up a direct debit as detailed in methods of payment, that way they don't need to remember and can just pay for any extra hours by cash or cheque.
To encourage prompt payments, particularly for regular late payers, you may also like to charge a late payment fee. This is a fixed amount for each day the payment is overdue. You should also set a period of time after which you will not accept the children into your care until the fees are paid. Any late payment fees and policies should be outlined in your contract.
When Parents Don't Pay
Sometime during their childminding career many childminders will experience parents that do not pay the fees that are due.
The following section will guide you through a fictitious case in which Annie Jones neglected to pay a week's fees for the care of her son, Sam Jones, then gave notice that she would no longer require her childminder's services. The contract they had signed agreed a four week notice period.
Letter to State Outstanding Fees
If a parent ignores verbal requests for money due, the first step is to send a letter detailing what they owe. This allows you to set out what is owed and when it needs to be paid. As with all your correspondence, this letter should be polite and include your contact details and the date. Send the letter recorded delivery as this can then be tracked and you will know if parents have signed for it.
[Example Letter]
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