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Late fee reminders for nurseries in Famly, synced to Xero

Parents pay in the Famly app, overdue fees get a reminder in seconds and invoices go straight to Xero. From about $211£159€189A$305C$299 a month.

At a glance

  • What it costs$211£159€189A$305C$299 a month

  • Worth, in extra profit or time saved in the worked example$246£185€220A$355C$348 a month

  • Pays for itselfWithin the month

  • Connecting two tools or some setup timeSome setup needed

Figures come from the worked example below, using its stated assumptions. Tool prices checked . How we check prices

The problem

Chasing fees is awkward when you see the parent at the door every day. A nursery chasing 15 families a month at 15 minutes each spends 3.75 hours, plus 2.8 hours matching 85 payments in the accounts, and a family that leaves owing $798£600€714A$1,152C$1,128 once a quarter costs about $266£200€238A$384C$376 a month.

What the AI does

Famly's Premium plan adds payment reminders and Xero import and export. Famly's site says parents can pay by Direct Debit, card or Tax-Free Childcare in the app and can turn on automatic payments, payments are matched to invoices, and the manager sees real-time balances and can send a reminder in seconds. Invoices export to Xero and payments come back the other way. Famly's pricing page doesn't show its payment processing fees, so ask before switching.

A worked example

An 85-child nursery in Nottingham already uses Xero and moves to Famly Premium. Parents are asked to turn on automatic payments, and the manager sends reminders from Famly each week.

Before

15 families chased at 15 minutes, 85 payments matched at 2 minutes, and about $266£200€238A$384C$376 a month left unpaid

After

About 1.75 hours a month on reminders and checks, and about $133£100€119A$192C$188 a month left unpaid

What it's worth

About $246£185€220A$355C$348 a month: $114£86€102A$165C$162 of manager time (4.8 hours at $24£18€21A$35C$34 an hour) and about $133£100€119A$192C$188 less unpaid fees, assuming automatic payments halve bad debt. Unpaid fees count in full because the care has already been given and the staff paid. Famly Premium is $211£159€189A$305C$299 a month excluding VAT; Xero is already in use here, so it adds nothing.

How to set it up

  1. Set out your payment terms clearly: due date, what happens when fees are late, and notice to leave.
  2. Connect Famly to your Xero organization and check one month's invoices and payments both ways.
  3. Ask parents to turn on automatic payments in the app when they next pay.
  4. Check balances weekly and send reminders from Famly, then follow up in person for anything over a month.
  5. Ask Famly for the card and Direct Debit fees and compare them with what you pay now.

What goes wrong

  • Payment processing fees aren't on Famly's pricing page. Get them in writing before switching.
  • Payment reminders and Xero export are on Premium, not Foundation; check you are on the right plan.
  • A reminder from the app can feel cold. For families in difficulty, talk first.
  • Tax-Free Childcare payments arrive from the government scheme; make sure they match the right child's invoice.

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Last updated October 17, 2026.