Article Link: http://exchangepress.com/article/accounts-receivable-management-effective-policies-and-practices/5022220/
Collecting payments from parents is vital to maintaining the financial health of an education business and in effectively managing cash resources. Cash management and the challenges in collecting tuition are often the last considerations of business owners as they begin their businesses, and often one of the frustrations that eventually leads to exiting the business. Careful consideration in creating healthy policies is critical when developing the business initially, and most important in the daily management of practices and processes that minimize collection issues. When done right, proper accounts receivable management allows business owners and managers the time to do what they love �" care for and educate children!Possible Payment Options
• Mandatory Bank Draft
Schools that require bank draft for payments love the ease and reliability of this option. It has been our experience that direct withdrawal (sometimes called ACH) is most successfully implemented when a center opens because parents are often reluctant to change to this option later. The center simply pulls payments from the family’s checking account each week and only has to follow up on accounts that did not have sufficient funds for payment.
• Credit Card and Online Payments
Allowing families to pay by credit card or online payment systems is ...