1. Get into an end-of-month routine
Rather than leaving it to the end of the year to look closely at your school's finances, it pays to tidy up those financial records at the end of each and every month. While this might seem like extra work for the sake of it, getting into a monthly accounting routine in fact allows your entire finance team to work more efficiently.
By balancing records and assessing your school's financial position on a regular basis, you'll be able to:
- Collect debts and bank receipts more quickly
- Spot any under or overspending (and understand why it happened)
- Deal with potential problems before they become a big issue
- Provide accurate forecasts to enable better decision making
- Save time when preparing school year-end accounts
In short, moving to a monthly routine in your school finances gives you the power to act in a more proactive and informed way when it comes to budgeting. Just make sure you follow a clear set of accounting procedures in the same way after every month end (read our recommendations here).
2. Use software specifically for the education sector
Good accounting software for schools will streamline your financial management, allowing you to view your school's financial position in real time, report on it instantly and control it seamlessly. You'll have automated reports at your fingertips, from income and expenditure accounts to balance sheets to trial balances.
Despite all these benefits, many schools struggle to find a solution that works for them. If you’re having the same problem, we recommend looking for software tailored specifically to your needs.
That’s why, with input from school finance managers and leading figures in education, we created our own online accounting software exclusively for the education sector. It can be customised for any school, trust or multi-academy trust and is fully compliant with DfE and ESFA requirements.
It’s also cloud-based, which means your team can access your information securely and simply, anywhere and at any time. With a structure designed specifically for schools, it offers all the power of reliable online software plus the flexibility to record and report information exactly as you need. Learn more about our school accounting software.
3. Tailor your financial reports
Most of the time you'll be presenting school financial information to two groups: the senior leadership team and the governing body. But do they want to see exactly the same information shown in the same way? No.
To make the biggest impact with your reporting, always keep your audience in mind. Those in the senior leadership team will probably want lots of detail on spending in each area of your school and how that compares to what was budgeted. They're looking for insights into where costs can be saved and efficiencies made. On the other hand, members of the governing body are more likely to prefer a brief summarised version, especially as they may not have a financial background.
No matter who you're preparing reports for, be sure to back up the raw data with notes in plain language (no financial jargon!) on areas of importance, like significant variances or trends. Highlight potential areas of risk of opportunities for cost saving. Not everyone will know what to look for, so make your information as easy to understand as possible.
Relatively small changes to the way you manage school finances can have a big effect. If you're looking for more advice and tips on efficient school finance management, download our guide to Month-End Accounts for the full steps we recommend in your end-of-month accounting procedures.