Victorian-based Time-out Childcare Reveals Secrets To Time & Cashflow

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6th January 2010, 05:46pm - Views: 656






media release



Ezidebit Pty Ltd

National: 1300 763 256 Local: 07 3124 5500 Fax: 3124 5555 Email: info@ezidebit.com.au

PO Box 1388, Milton QLD 4064


January 6 - 2010

   

Victorian-based Time-Out Childcare reveals secrets to time & cashflow 


Child care centre success story unveiled as enrollments for 2010 begin


Manually managing payments from just over 400 families was turning into an administrative and financial

nightmare for Victorian-based childcare provider Time-Out Child Care. The front counter was being swamped

every morning, reconciliation of payments was taking up to two days a week, and chasing up non-payments was

becoming a bigger and bigger issue. 


Enter the electronic payment powerhouse Ezidebit and in just five months the organization has significantly

reduced administration time and costs, and importantly it has turned around the cashflow inconsistencies it was

experiencing; making effective management and business growth now realities. 


The initial trial of Ezidebit has led to its time saving solutions for collecting and processing payments being

adopted in Time-Out Child Care centers in Bentleigh and Doncaster East, both long care centres. It is a business

decision that childcare operators around the country are making – turning to Ezidebit for a range of reasons. 


Integral to the success of Time-Out Child Care in a notoriously difficult business sector is their commitment to

every individual child in their education and care, to their staff and to maintaining parent involvement and

empowerment. 


“Time-Out Child Care is a carefully run business, one which sees us employing 50 people and caring for children

from almost 400 families. This requires sound business management principles, a clear understanding of our

sector, and sensible, careful cashflow management,” said Company Director Adam Agosta


Mr. Agosta said by signing close to 100% of families onto a tailored customer payment plan from Ezidebit, the

group had benefitted in three key ways. 


“Firstly, the Ezidebit system won back at least two full administrative days per week. This is a significant

achievement as previously the front counter was inundated every morning with payment processing, followed

by reconciliations. This time-win allows us the time and space to do what we do well which is focusing on the

welfare and development of children, as well as staff training and general business development,” said Agosta. 


“Secondly, by rolling out all of our families onto Ezidebit, it meant day care fees are directly debited from either

bank accounts or credit cards and then seamlessly administered by Ezidebit. This translates into a remarkable

cash flow increase, and also makes cashflow more predictable.


“In fact, the system has reduced our debtor days from a previous average of 14 to now just 7.7 days, meaning

cash is now flowing far more freely for the group, allowing us to reinvest more into the centres.” 



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Agosta said the childcare sector was made up of businesses with historically poor cash flow and payment

cultures, and he was well aware of this, having experienced it firsthand.  “Busy parents were simply forgetting to

pay their fees and this caused major cash flow interruptions for us, not to mention time spent chasing fees,” he

said. 


“These days, time spent perusing Customer Account Balances or chasing balances is almost non-existent. In

addition, initially some parents were reluctant to come on to the system, however now are converts as the

Ezidebit system has greatly reduced their administration as well. All in all, it has created a positive client

experience.”


“Thirdly, the training and support that Ezidebit provided from a management and technical side made the

changeover seamless.  A tailored solution was delivered, meaning that when we needed to change over to the

new Child Care Management System of reporting and claiming Child Care Benefits in early 2009, it was all

incorporated seamlessly into the process. The back end accounting procedure is now much easier to manage.”


Ezidebit Chief Executive Officer Charlie Holland says flexibility allows centre administration to set a regular

amount or vary the amounts of each payment thereby providing mutual benefits for the centre and peace of

mind for parents.  “We currently have almost 2200 child care business across Australia experiencing the benefits

of Ezidebit outsourced payment solutions,” he said.


On average in the childcare sector, Ezidebit’s time saving solutions for collecting and processing payments have

seen an estimated $50,000 of cash flowing back through the provider.


Established in 1998, Ezidebit offered the first specialised automated Direct Debit and Credit Card transactions

service in Australia and is now recognized as the industry leader processing in excess of half a million

transactions per month on behalf of more than 5,000 businesses from multiple industries.

 






For further media information or interviews relating to Ezidebit contact Kath Rose @ Kath Rose & Associates 

t: (07) 3357 9054 m: 0416 291 493 or e: kath@kathrose.com







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