Increased childcare demand requires a steady cash flow

5 min read

The Australian Department of Education have reported that childcare centres are seeing a rise in enrolments. The biggest growth can be seen in the Australian Capital Territories, where federal government figures show a meteoric rise of almost 70 per cent since 2003.

The government report, published in 2014, states that more than 23,000 children were enrolled in childcare in the ACT as of September 2013. Compare this to six years previously when the figure showed fewer than 14,000 enrolled children and the size and speed of the growth comes into perspective.

Nationally, the number has also risen, with nearly 40 per cent more children now being entrusted to childcare services.

The skyrocketing numbers have led to a reduction in the amount of hours parents are using childcare services for, however. Service hours fell by 7 per cent between 2007 and 2013, showing that parents, although responsive to the offerings of childcare, perhaps found it difficult to fund.

Assistant Education Minister Sussan Ley said that increased demand is “clearly having an impact on the number of hours of child care …that families can afford to access per week.”

What childcare centres don’t want is irregular income as more families find it difficult to afford their services. It is important for childcare centres to adapt when they can, and using simpler and smoother method of income control is a good option to benefit parents and business.

Setting your business up with direct debit integration has many benefits. Here are three ways it can improve the running of childcare centres and future-proof their business.

Time saving

If the Department of Education statistics show anything, it is that those working in childcare services have a constantly growing workload and less time to dedicate to chasing income. By integrating direct debit for business purposes, childcare centres can save precious time that they can put to better use elsewhere.

Direct debit services offer a hassle free way of receiving a steady flow of income that can be managed online in one location.

By encouraging parents to use an automated payment method, managers are not chasing individual payments, leaving them the time to care for children and continue to improve their overall service.

Avoid confrontation

There is no greater trust than someone putting their child’s welfare into another person’s hands. Childcare is a personal service, usually established in localised communities, so it is not uncommon for childcare professionals to get to know their customers on a more personal level.

How awkward it can be, then, to chase a parent you have a good relationship with for late payment? In reality, one of the main reasons a parent may need childcare services is that they have a busy schedule. For that reason, managers may find it difficult to get in contact with parents for any overdue payments, causing an organisational nightmare of sticky notes and payment spreadsheets.

Direct debit eliminates the concern. What’s more, it makes keeping track of your income easy, so you can reduce your own payment stress.


Setting up a direct debit is incredibly easy. Parents complete a direct debit form and after authorisation of a credit card, debit card, or bank account, payment will begin to flow.

What makes a direct debit service so constructive to small business is the flexibility of how those funds can be used and managed. Payments can be transferred into a bank account on a daily basis, meaning managers can plan for an increase in funds when it is most necessary.

With Ezidebit, users also have 24-hour online access to their account seven days a week. Meanwhile, daily reporting ensures centres remain in complete control of their income.

As employment figures rise, childcare becomes more necessary. As child enrolment figures rise, the necessity for childcare centres to adopt a sustainable cash flow method becomes more and more important. Find out today how Ezidebit can help your business adapt.