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May 2019: Feature in Focus – Tax-Free Childcare Reconciliation

Magicbooking Blog: Feature In Focus - Tax-Free Childcare

May 2019: Feature in Focus – Tax-Free Childcare Reconciliation

This month, we are going to be taking a look at magicbookings’ tax-free childcare reconciliation feature. This reduces the effort you must go through to reconcile Tax-Free Childcare and Childcare Vouchers. Tax-Free Childcare and childcare vouchers, as you are probably aware, are schemes that relieve some of the financial burdens on working families. They do this by providing financial support either directly or through tax breaks.
More information on them is available here. As you may also be aware, they can be a bit time consuming for admins to work with. This is due to how Tax-Free Childcare and Childcare Voucher systems do not integrate with any other system.

Instead, you must manually take the childcare voucher receipts and check them against your bank statements, to see whether a child has had the correct amount applied between the two. This is a time-consuming task to do for one child, but when you work with hundreds, the effort becomes considerable.

Magicbooking takes the effort out of this task, with the Childcare Voucher reconciliation system. When you receive the voucher payment, you will see a reference number for each child on your statement. You can then link that reference number to a child profile, which you only need to do once.

Magicbooking will display the payments received, where Tax-Free Childcare or childcare vouchers have been used. The reference numbers for those profiles and the amount that was paid via Tax-Free Childcare or childcare vouchers are collected in one place. You can then very quickly go through with your bank statement and cross-reference the amount paid via the reference numbers. The system automatically updates any discrepancy, allocating credit or letting parents know they have an outstanding balance in case of underpayment.

This saves you significant amounts of time and effort, by putting all of the information in one place. Centralising this information reduces the amount of effort around assembling paperwork, cross-referencing and checking payments. This is especially useful since the majority of payments in this way do not need anything more than a quick check to see that everything is working normally. This also means that you don’t have to go through and separate the children who pay via Tax-Free Childcare from those that don’t. These factors enable magicbooking to save many hours every week on Tax-Free Childcare and childcare vouchers.

To see more about how magicbooking can save you time and effort, book a demo now. It’s free, takes 30/45 minutes and comes with no obligations. Click the button below.

 

2 Comments

  • How do I find out how to actually do the TFC payment reconciliations?

    31st January 2020
    reply
    • James

      Hi Sam,

      Thank you for getting in contact. If you contact the help desk they will be able to assist you with your enquiry.

      – James

      14th February 2020
      reply

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