EllyMoe, that's how it works!
You can get something called a Little Squirt which a hose fitted to the toilet, so you can spray off any excess. If they're older, you can generally just tip it and flush it. Then you stick it in a pail with a lid until you're ready to wash.
I always hot washed, but plenty use cold. Tiny bit of washing liquid, no fabric softener or anything, then chuck them on the line in the sun. If you can't use the sun for whatever reason, then definitely hot wash instead of cold, but otherwise you can choose between hot and cold.
The sun will bleach out any stains.
Get them off the line dry, fold and put away... you're done.