Empowering MATs with Budgeting Software

Balancing Books and Boosting Education: How Budgeting Software Can Empower Multi-Academy Trusts

In today's educational landscape, schools across the UK are facing unprecedented financial challenges. These budget constraints have left many institutions grappling with the difficult task of balancing their books while continuing to provide high-quality education. The pressure is mounting, as highlighted by a recent survey from the National Governance Association (NGA), which revealed that 60 percent of governing boards are concerned about their ability to balance budgets—a significant increase from previous years.

For Multi-Academy Trusts (MATs), the challenges are even more pronounced. With the deadline for this year’s budget forecast return (BFR) fast approaching on 29th August, MAT leaders, finance managers, and business officers are under immense pressure to compile comprehensive budget forecasts that account for past, current, and future financial years. This task has become increasingly complex, particularly with new requirements to monitor and report on key areas of spending, such as ICT.

But there is a way forward. As many educational leaders are discovering, technology, particularly advanced budgeting software, can be a game changer in streamlining financial management processes and helping schools navigate these turbulent times.

Budgeting

3 mins

by Rich Newsome

Thought Leadership Expert

Posted 12/09/2024

The Growing Complexity of Budget Forecasting

Budget forecasting is no small feat. It requires a deep understanding of various data points, from building maintenance costs to the investment in educational resources like laptops and textbooks. For those still relying on outdated systems, the task can be overwhelming. Data often needs to be pulled from multiple sources, increasing the risk of inaccuracies and missing information.

For academies catering to special educational needs (SEN) students, the challenge is even greater. These institutions require additional resources, such as specialised staff or equipment, which can be difficult to predict in advance. Without a clear, up-to-date understanding of their financial situation, these schools risk falling short in providing the necessary support to their students.

The Power of Real-Time Budget Oversight

The key to overcoming these challenges lies in gaining full oversight of the budget in real-time. By doing so, academies can ensure that funds are directed to the areas where they are most needed and can identify and predict trends in spending. According to research from Access Education, there has been a 115% increase in the use of budget adjustments and re-forecasting capabilities in the 2024 financial year compared to 2023. This shift highlights the growing importance of proactive budget management.

Advanced budgeting software, such as Access Education Budgeting, is transforming the way schools manage their finances. These tools allow teams to create comprehensive and accurate budget plans that account for all revenue sources and expenses. Importantly, they enable users to monitor actual spending against their budget plan throughout the year, allowing for adjustments to be made as needed.

Automation: The Future of Financial Management

Automation is at the heart of this transformation. Cloud-based financial software packages remove the need for manual data entry and calculations, saving countless hours of administrative time. With features like scenario forecasting, schools can model the impact of various factors—such as a 5% increase in teachers’ pay—on their overall budget. This capability is crucial for long-term planning, especially in an environment where funding, pupil numbers, and staffing costs can be unpredictable.

By leveraging historical data and expert knowledge of the education sector, budgeting software can generate financial forecasts for up to five years, providing schools with the insights they need to prepare for the future

Preparing for the Future

In these challenging times, MATs and individual schools alike must take proactive steps to ensure financial stability. Advanced budgeting software offers a powerful solution, enabling educational institutions to manage their finances with confidence and focus on what truly matters: delivering high-quality education to every student.

Learn more about best practices in budgeting and how Access Education can support your school or MAT in our handy guide.

Meet Rich Newsome, a thought leadership expert with a passion for education that stems from his background as a teacher. Committed to shedding light on the most significant issues in education, Rich goes above and beyond to provide schools with the guidance and support they need without the burden of extensive research.

Drawing from his firsthand experience, he brings the voices of the education sector to life, allowing those within schools to share their experiences, exchange ideas, and explore best practices.

As our in-house Content Manager, Rich is dedicated to creating a platform where the collective wisdom of educators can flourish, fostering a community that thrives on shared knowledge and innovation in the ever-evolving landscape of education.