Below is everything you need to know about managing packages, from tracking balances to automating top-ups.
1. The Core Concept: How Package Billing Works
With the Package Billing Method, clients are invoiced upfront for a specific number of lessons or hours for a particular service. As you or your teachers schedule those lessons on the calendar, Teachworks automatically deducts them from the client’s prepaid balance. It’s a simple "pay first, use later" system that eliminates the need to chase down payments after every session.
2. Tracking & Monitoring Balances
You never want to accidentally over-schedule a student who has run out of prepaid hours. Fortunately, Teachworks makes Tracking Package Balances effortless.
The Package Balances Table: Get a bird's-eye view of all client balances in one place.
In-Calendar Visibility: When scheduling a lesson, the student’s available package balance conveniently appears in brackets right next to the service name, so you always know exactly where they stand without changing screens.
3. Automating Top-Ups: Alerts & Self-Serve Purchases
Managing packages manually can take up valuable administrative time, which is why we’ve built add-ons to put this process on autopilot:
Package Balance Alerts Add-on: Set a threshold (e.g., 2 hours remaining) and the system will automatically trigger an email notifying you, your staff, or your clients that they are running low.
Package Purchases Add-on: Take those alerts a step further. This feature embeds a secure purchase link directly into the balance alert emails. Clients can click the link, buy more hours online, and Teachworks will automatically generate the invoice, record the payment, and update their balance. This option requires Stripe.
4. Making Adjustments: Crediting, Archiving & Removing
Sometimes, you need to step in and make manual adjustments to a student's package. We offer flexible tools to keep your records accurate:
Crediting a Package: If a customer has already paid for a package but you need to issue a refund or credit note for unused hours, you can use the "Credit Package" line item on a Credit Note. Once approved, this will automatically deduct those hours from their remaining package balance.
Archive Packages: When a student uses up a package, or if you are transitioning from per-lesson billing to package billing, archiving allows you to safely tuck away old, used-up packages so they don't clutter your view or interfere with new package balances.
Removing Packages: Mistakes happen. If a package invoice was created entirely in error, you can completely remove the package to correct the student's history.
5. Keeping Your Books Clean: Accrued Revenue
Accounting for upfront payments can be tricky because the service hasn't been rendered yet. Teachworks simplifies this by Calculating Accrued Package Revenue.
When a client prepays, the funds are initially considered "unearned" (or accrued) revenue. As lessons actually take place, Teachworks helps you accurately transition those funds from unearned to earned revenue, ensuring your financial reporting is always accurate.
Still have questions? Explore the links above to dive deeper into any specific feature, or reach out to our team if you need personalized help setting up the perfect package billing workflow for your business.