Comments on: Monday Mailbag – Billing and Payments

By: Stephanie

Stephanie — Wed, 23 Dec 2009 14:40:56 +0000

Hey Natalie! Well, I bit the bullet and signed up for MTH! I’m soo soo soo soooo glad I did. It’s everything you said and MORE!

By: Lydia

Lydia — Tue, 15 Dec 2009 22:11:14 +0000

I bill my students quarterly by the number of lessons I will be teaching, no makeup or reschedule for missed lessons. It works out very well. I only have to worry about billing 4 times a year instead of monthly, a pain in the neck.

By: Betsy

Betsy — Tue, 15 Dec 2009 13:07:59 +0000

I’m NOT charging a flat fee per month, and really wish I was! Definitely will be doing that next year. I’ve also been charging out books as I purchase them for the kids. The annual materials deposit makes sense. As far as the incentive program and recitals, I’ve figured that into the tuition.

I wouldn’t bother with discounts for early payments. Their “discount” is not getting a penalty added for late payments. Or just move up your due date so that, for example, Dec. lessons are paid at the last lesson of Nov.

By: Amy C.

Amy C. — Tue, 15 Dec 2009 05:24:23 +0000

I have tried many things over the years and have found what works for me. I charge the same each month whether there’s 5 lessons or 3 due to a holiday. It really evens out (5 in Ocotber, 3 in December…) I offer a discount for payments recieved on or before the 1st of the month. It’s not a huge discount but nearly everyone has their check to me by the 1st, which makes paying my bills so much easier. Before, with payments due the 1st lesson of each month it was hard because I’d have families forget their checkbook (we’ve all had that happen more then we can count) then they might be sick the next week, so it could be the middle of the month before I was paid. I do have some families write several checks, postdated, at one time. I of course hold them until the 1st of the specified month, but it’s so nice to deal with bookeeping pretty much just once a month. Then I can focus on teaching. I do charge a registration fee in the Fall to cover recitals and the yearly incentive program. Students buy thier own books. Summer lessons are pro-rated. They can pay each time they come or pay for several at once and we just keep track as they come. I write reciepts, with carbon copies for my tax records. Sorry this is so long, hope it’s helpful to someone!

By: Mikaela

Mikaela — Tue, 15 Dec 2009 04:16:48 +0000

I actually bill at the end of the month for the lessons already completed. This works well for me, because I do not charge for missed lessons (as long as I received 24 hours notice), and I don’t want to hassle with paying my students back for a lesson they missed.
Payment is due the first week of the following month, and after a grace period, penalties are added to the bill. I will keep the program you mentioned, Natalie, in mind in case my studio ever gets to big to handle with good ole carbon copies!

By: Mindy

Mindy — Mon, 14 Dec 2009 14:45:25 +0000

How do schedule the right to take a week off each semester, Natalie?

By: Mindy

Mindy — Mon, 14 Dec 2009 14:43:47 +0000

I do similarly to what Natalie does. I take the number of lessons for the year, times my per lesson fee, then divide it by the number of months so that the “tuition” fee is the same every month.
For materials I set up a student account in which students deposit a set amount at the beginning of the year and then (since I buy most of the materials)I subtract as needed throughout the year. This includes any books, rentals and even competition fees. This way I don’t have to keep asking parents for money along the way.
This has streamlined my handling immensely!