Keeping track of payments and invoicing on an excel sheet (or something similar) can work when you are small, but there is a lot of manual admin time needed to keep it up-to-date.
Regardless of what tools, or tutor management software you are using, this post will hopefully reduce the amount of time you spend bookkeeping!
Why Does Tutor Payments & Client Invoicing Matter?
Your tutors and customers’ continually changing schedules will affect the way you invoice, collect payments, and manage your cash flow.
Updating and managing these changes can take up a lot of admin time and drain your energy.
If you find yourself spending a lot of time answering emails and messages coordinating various payment issues, you already know the stress.
It can be a pain in the neck to keep track of:
- Who has paid you.
- Who still needs to pay you.
- Who you need to pay.
- When you need to pay it by.
- How you are going to pay.
- How much it will cost you.
Tutoring management software, or other invoicing tools, make a big difference in your ability to manage tutor payments and customer invoicing – but they are not everything.
Your tutoring business needs to develop an approach to bookkeeping and payment management that is software agnostic.
How To Approach Tutor Payments & Invoice Management
- Set Billing Expectations With Parents After First Successful Tutoring Session
- Have A Process To Easily Pay Tutors & Track Their Hours
- Ensure Your Tutors Understand The Process
Set Billing Expectations With Parents After First Successful Tutoring Session
Parents are concerned about their child’s needs. Stay focused on the student before the first lesson. Save the ‘Our Policies’ talk for later.
A motivated and satisfied parent is the best partner (and customer) to have on a student’s learning journey.
Once parents have seen your team’s work in action, send a follow-up email or have a call to:
- Review the resources you sent along since the discovery call.
- Review fees and policies for scheduling and last-minute cancellations.
- Onboard parents with any tutor management software or payment tool you are using (if you have not already done so).
Make sure to be firm, but flexible – compassion is a great way to build caring customer relationships.
Have A Process To Easily Pay Tutors & Track Hours
Questions To Ask When Establishing A Baseline:
- How are your tutors currently tracking the number of hours they are working?
- Do you have standardized forms?
- How do you track hours? Via email, text, google form, or a parent signature form?
- Where do you keep tracked hours?
- Do you pay weekly, bi-weekly, monthly or varied? Why?
Steps To Reduce Complexity
If you find yourself using multiple mediums to communicate with your tutors and track hours, it is worthwhile for you to develop:
- A consistent, trackable way for your tutors to invoice you.
- An expected payment receivable timeframe (an acceptable amount of time in which you will pay tutors).
- A workflow process for how you are going to pay tutors (there is nothing worse than e-transfer limits and fees).
Consider taking the following steps:
- Use a digital contractor invoice template and timesheet log.
- Pay within 15 days if tutors’ tracking sheets are complete and accurate.
- Use a tutoring management software platform or CRM to keep documents centralized.
Schedule A Time Each Week & Pick The Right Tool To Help
The time you spend manually invoicing each client, collecting payments, and sending transfers can add up.
Be sure you set aside a designated time each week to keep up with your bookkeeping – there is nothing worse than having to do it all at the end of the month.
If you are spending a good portion of your time comparing texts, emails, phone calls, parent signature forms, and other forms of communication to bill customers and pay tutors properly – it might be time to explore using a tutoring management software or a CRM.
Digital tools can help you streamline your efforts and keep you more organized.
More Time On Relationships – Less On Bookkeeping
Administrative burden can become challenging to manage as you grow, or look to ease your day to day – payment management can help reduce this burden.
Try and establish a simple workflow for sending, tracking, and collecting invoices.
It will leave you and your team more time to focus on higher-value activities like relationship building. After all, your business is heavily dependent on referrals.
Payment, scheduling, time spent on admin, and client experience go hand in hand – start thinking about them as one.
Tools To Check Out: