Best accounting software for private schools

If you’re already reading this article, you probably already know what accounting software for private schools is. However, it’s worth noting that various tools and solutions come under the ‘accounting software’ umbrella. So, let’s explore some of these terms in further detail.

Management information systems (MIS)

A Management Information System (MIS) is a computer-based system that collects, stores, and processes data. In recent decades, Management Information Systems have become an indispensable tool for schools, including independent institutions. While initially used primarily for student and employee records, their functionality has significantly expanded. Today, they serve as powerful financial management and accounting tools – with some even providing HR functionalities.

This is particularly valuable when it comes to accounting for private schools due to the unique financial complexities they face. For example, MIS can effectively manage tuition fees, which is, of course, a core revenue stream.

Budget forecasting tools (AKA budgeting software)

It's important to distinguish between a Management Information System (MIS) and budgeting software. Budget forecasting tools help you track income from tuition fees and other sources against your school's expenditures. These tools enable you to create financial forecasts and models, allowing for effective budgeting. While they don't directly process tuition fees themselves, they are invaluable for managing your school's finances effectively

Both definitions have distinct purposes

While both Management Information Systems (MIS) and budgeting tools are important when it comes to financial accounting for private schools, they serve distinct purposes and are not interchangeable terms.

• MIS focuses on collecting, storing, and processing a wide range of school data, including student records, academic performance, and operational information.
• Budgeting tools specifically help you plan and track your school's finances, including creating budgets, forecasting revenue and expenses, and monitoring financial performance.

It's crucial to understand these distinctions as you evaluate your school's needs and explore different software options.

What are the challenges you’re likely facing?

Many private schools, particularly smaller institutions, rely on Microsoft Excel to handle the bulk of their financial management. Why? Because that’s the way it’s always been done. While spreadsheets are familiar and can be an effective way to collate, process, and store financial information, they often lack the advanced functionality and efficiency of purpose-built accounting software for private schools. Let’s not forget that spreadsheets are cost-effective, but they can quickly become cumbersome and error-prone as financial complexities grow.

What’s more, spreadsheets rely on manual data entry, which increases the risk of human error. Storing information solely in a spreadsheet may not meet data protection requirements. Data can also be lost from a spreadsheet (unlike cloud solutions, which offer greater data security and redundancy). Most importantly, spreadsheets consume valuable time. Manual input, formula development, and template creation all demand significant effort. And let’s face it - We all understand the precious nature of time in educational settings.

We’re not saying you should ditch your spreadsheets in favour of private school accounting software, but we are encouraging you to ask yourself:

Frequency of human error in financial reporting:

• How often do human errors occur in my financial reporting processes?

Data security and accessibility:

• Is the data on my spreadsheets truly secure?
• Who has access to the server where my spreadsheets are stored?

Risk of data loss:

• Have I ever experienced the loss of critical financial information?

Time spent on manual data entry:

• How much time do I/my team currently dedicate to manual data entry for financial management tasks?

These are all questions to consider when evaluating the effectiveness of your current financial management practices. 

We recently wrote a whole article on this topic. Give it a read! Independent school budgeting software vs budgeting spreadsheets: Which is better for private schools?

When in the market for accounting software for private schools, it’s important to consider several factors such as functionality, usability, cost support and security. Let’s look at each in turn.

Functionality

• Tuition Management: Seamlessly track fees, generate invoices, and process payments.
• Financial Aid: Manage scholarships, bursaries, and other forms of assistance.
• Donor Management: Track donations, manage pledges, and issue tax receipts.
• Reporting and Analytics: Generate customised reports on key financial metrics.
• Integration: Integrate with other school management systems for a streamlined workflow.

Usability

• User-friendliness: Easy to learn and navigate, even for non-accounting staff.
• Mobile Access: Allow for on-the-go access and data entry.

Cost

• Pricing Models: Evaluate subscription-based or per-user fees.
• Value for Money: Assess the software's features and functionality in relation to the cost.

Support

• Customer Service: Reliable and responsive customer support.
• Training and Resources: Access to training materials and resources.

Security

• Data Security: Robust security measures to protect sensitive data.
• Compliance: Adherence to relevant data privacy regulations.

While there are many tools on the market to help you manage accounting for private schools, we will be focusing on three in this article: Access Education Budgets, iFinance and Pass Finance.

Access Education Budgets

First on the list, we have Access Education Budgets. This software allows you to take charge of tuition fee management, resource allocation, strategic planning and reporting. 

You can:

1. Simplify staff management by allocating funds for salaries, bonuses and benefits
2. Efficiently budget for routine maintenance upgrades to ensure your building maintains optimal condition
3. Model different fee adjustments to analyse financial impact

There are other functionalities available with the software. Visit financial management for independent schools to find out more. 

Access Education Budgets is part of a suite of connected solutions. These tools include parent engagement, HR & managed payroll, curriculum content (for senior schools), and career guidance.

To find out more about Access Education’s suite and how it aligns specifically with accounting for private schools, click on this link – Education software for independent schools.

Alternatively, watch the video below to gain a high-level understanding of Access Education’s offering:

Strengths: Specifically designed for UK schools, offering budgeting, forecasting, and financial reporting tools.

Considerations: Is not an MIS, so cannot directly manage tuition fees. 

iFinance

Next up, we have iFinance (owned by iSAMS & IRIS). iFinance is a cloud-based finance management system, supporting multi-currency, offers power BI dashboards and provides automation features to help private schools speed up invoice and payment management. 

Key Features:

1. Cloud Storage
2. AP Inbox
3. Web-Based Access
4. Audit Trail

Strengths: Comprehensive solution with features for tuition management, financial aid, and donor management.

Considerations: Is not a budget management tool, so will not allow you to forecast and model different scenarios.

passFinance

Last up, we have passFinance (owned by WCBS). passFinance is a key accounting software for private schools and comprises of several modules that give one single view of your school’s finances. Priding itself on its simplicity, the platform aims to avoid stress of duplication, confusion and the balancing of multiple systems.

Partnering with the Access Group recently, the platform now also offers HR and payroll services, providing a more complete solution.  

Strengths: Cloud-based solution with a user-friendly interface and strong reporting capabilities.

Considerations: Is not a budget management tool, so will not allow you to forecast and model different scenarios.

The best accounting software for your private school will depend on your specific needs, budget, and technological infrastructure. Consider conducting a thorough evaluation of your requirements and demoing a few different options before making a decision.

By investing in the right accounting software, private schools can gain greater control over their finances, improve operational efficiency, and make more informed decisions about resource allocation.

If you’re interested in how Access Education Budgets can help your independent school, download our brochure. If you want to find out more about pricing, we have a free calculator.