If I could give a new childminder one piece of financial advice, it would be to take fees in advance. There's no stock to repossess in childminding and no way to take back care you've given, so being paid before the care happens is the only real protection you have against a family leaving without paying.
In advance or in arrears
Paying in advance means a family pays for the coming month or week before it starts. Paying in arrears means they pay afterwards for care already given. Arrears can feel friendlier, but if a family gives notice and stops paying, you've already done the work and have to chase the money. Paid in advance, the worst that usually happens is refunding days the family didn't use.
How often to invoice
Monthly suits most families, because it matches how most people are paid. Weekly suits families paid weekly, and termly suits term-time-only places. Whichever you choose, put the exact due date in your contract, such as the first of each month, or seven days after the invoice date for weekly and termly billing.
Spread evenly or charged as booked
This is the choice that confuses people most. You can work out the year's fees and split them into equal monthly payments, so a family pays the same every month whatever the closures. Or you can charge for the weeks booked in each month, so months with holidays cost less.
I prefer spreading fees evenly. Families find it easier to budget, my own income is steadier, and I avoid awkward conversations in a month full of closures. Explain in the contract that the monthly figure already allows for your closures and the weeks the child is booked, so nobody feels they're paying for days you're shut.
Part weeks and changes
A term starting midweek, a bank holiday or a change to a child's days all affect the schedule. Your contract should say that part weeks are charged for the days booked in them, and that every invoice shows what's funded and what's paid. If you offer funded hours, your invoices have to list funded hours, private hours and optional extras separately in any case.
Make paying easy
List every way families can pay, including Tax-Free Childcare if you're signed up to receive it. People pay on time more often when paying is easy.
Your options
GoChildmind asks you three things. First, whether you're paid in advance or in arrears. Second, whether you invoice weekly, monthly or termly. Third, how the amount is worked out: the same every month spread across the year, charged for the weeks booked in each month, or charged each term.
Any of them works if the contract is clear. I'd steer new childminders away from arrears, for the reasons above.
What I do
I'm paid monthly in advance. Weekly invoicing was too much admin, and termly made the maths harder for the families and for me. Monthly matches how most parents are paid, and I'm never giving care I haven't been paid for.
How it looks in your contract
From a GoChildmind contract
Billing. Fees are worked out for the year and divided into 12 equal monthly payments, so you pay the same amount each month. The total takes account of my closures and the weeks your child is booked.
When. Fees are paid in advance. I invoice monthly, and payment is due by day 1 of each month.
Put your own details in, freeRead the full sample contract
The monthly figure is worked out for each child from their days, your rates and your closures, so you don't have to do the maths.