Tuition Payment Management Systems: 3 Reasons Why They Help Reduce Workload

tuition management systems

At TUIO, we make things easier because we understand that the business side of running a school can be challenging. When running a school or daycare, there is the constant stress of needing to enroll new students every year to compensate for departing families, the time spent managing your staff, communicating with parents, and much more.

That is why payment management systems can help you cut down on areas where a lot of time is wasted, and one of those areas is billings and payments.

After working with numerous schools, our team noticed that many schools are stuck in the past when it comes to payments. This results in too much time spent on admin and not enough on building lasting relationships with families. Tuition payment management systems address some of the inefficiencies that plague schools and help relieve the pressure on administrators.

#1: Payment management systems automate the billing

We speak to school administrators every day and hear the same thing over and over – schools typically provide a payment receipt if tuition is paid cash, but not otherwise. Unless, parents make a request for annual receipts for tax purposes. While it makes sense to produce a receipt to someone making a payment with a non-traceable method of payment (cash), it is also sensible to have a formal process for all families. And not wait for requests for receipts!

This is extra useful if you offer different payment plan options (e.g. separated parents splitting the cost of tuition) to parents who need to keep track of who does what (and who owes what). Parents also appreciate the transparency of receiving an official invoice and receipt for their payment. After all, when was the last time a business asked you to pay for hundreds or thousands of dollars at once without providing you with an invoice and receipt?

With an online  tuition management system you can set it up so that students specific payments and programs are accounted for. Once your programs are set up, payment management systems will take care of invoicing your parents electronically as payments come due, keeping track of all receivables, and sending receipts upon receipt of payment. 

#2: Payment management systems boost completed payments on time

Another obvious benefit of payment systems for tuition management is that they equip you with options to accept electronic forms of payment and increase timely payments.

Depending on the platform, you will be able to set it up to accept pre-authorized debit, credit/debit cards or both. With a system like TUIO, parents can even select autopay where the amount due is directly withdrawn from the parents credit card. Beyond the obvious additional convenience offered to parents (who will reward you with their business and higher retention rates), digital payments actually save you, the school administrator, a tremendous amount of time and money. How? Less time chasing down payments, less time sending reminders, and more on-time cashflow, especially with autopay!

autopay with TUIO payment management system

Imagine a hypothetical world where 100% of tuition payments come through on time digitally, and you don’t have to deal with a single reminder or cheque. That means no in-person collection, no deposit slips to fill, no trips to the bank, no fight with the deposit machine, no poorly written cheque, and no NSF to follow up on.

Consider how much time you would save each month? It depends on your school’s size and unique situation but on average, however, we found that schools that automated their tuition billing system and offered online payment options reduced cheque payments by 97% and saved 20-40h/month.

#3: Payment management systems provide great transparency for all stakeholders

Many people may need to get an accurate picture of the school’s finances at different times of the year: the bookkeeper, the Board, the auditors, the owners, etc. The exercise of calculating key financial metrics such as revenue, receivables, and cash flows becomes much simpler when accurate, current data is available at all times. This is because payment management systems will typically reconcile your payments in real time and let you export this data for other purposes.! As a result, everyone gets a clear picture of how the school is doing, without having to wait for the official books to be finalized by the school’s accountant. Hello financial snapshot and easy forecasting

Conclusion

Payment management systems are an invaluable and underrated tool that all school administrators should add to their toolbox. With so much time spent stuck in physical, manual and inefficient billing and payment processes at schools, making improvements in this area can result in dizzying returns on investment rates. Through streamline processes, TUIO ensures that all your online tuition management needs are taken care of.

TUIO is one of the best school management solutions in the educational space with an incredible billing & payments platform. Principals, owners, administrators and daycare supervisors save hundreds of hours each year automating their administrative tasks on TUIO, from billing to enrollment. TUIO provides families with a secure account where they can seamlessly enroll their child in programs, provide online payments of their upcoming school or daycare invoices, and even receive communications from administrators. If you would like to see for yourself what TUIO can do for your organization, schedule a demo and/or read some of our customer testimonials.