How to get the most from your budgets & education finance providers

Understanding education budgets and finance providers

What is an education budget?

An education budget is a financial plan that outlines the expected expenses and resources that an educational establishment needs in order to operate. This includes expenses such as salaries, facility costs, technology expenses, and other operational costs.

An education budget is needed to ensure that there are sufficient resources to provide high-quality education and to support the educational needs of students.

How to create an education budget

When creating an education budget it is usually a good idea to start by assessing the current financial situation by gathering data on current revenue and expenses. After this, the school needs to determine priorities by assessing which area or department of the school needs additional resources or investment.

The school should estimate the costs that will be incurred throughout the year such as salaries, new learning resources and other educational investments and allocate funds accordingly.

A budget should be monitored throughout the year and adjustments made where needed to ensure the budget remains on target.

Common challenges with education budgets

Determining a budget can be challenging as a school will often have competing priorities which could make allocating funds difficult. Moreover, many educational institutions have limited funding which can lead to tough decisions when creating a budget.

Of course, there could also be unforeseen expenses throughout the year, therefore it is important to plan for the expenses when creating a budget.

How professional education finance providers can Help

With much to consider when creating an education budget, you’d be forgiven for feeling overwhelmed, however, there are tools to help you.

Software can be used to help schools streamline their budgeting processes, reduce errors and help you make more informed decisions on how to allocate funds.

Finance & Budgeting software can help schools create and manage their budgets, from automating admin tasks to forecasting future revenues and expenses, you can get the support and help you need to keep your school operating efficiently and effectively.

Choosing the right education finance provider

Key considerations when choosing a provider

When choosing an education finance provider, you should take into account the experience and reputation of the provider. If the provider has a proven track record of supplying quality software in the education sector along with positive reviews from other schools, the provider could be an option to be considered in your decision-making process.

Furthermore, as every educational organisation is different, you should consider if the software can be tailored to your specific needs. The software should meet your school's financial needs including budgeting, financial reporting and forecasting. The levels of support your school and staff will receive should also be taken into consideration.

If your school has other systems and software in place, it may be worth finding out if the finance provider can integrate with other systems. By ensuring systems are fully integrated, time and resources can be saved, enabling staff to work more effectively.

Questions to ask before working with a finance provider

Before making your decision on a finance provider, you should gather as much information as you can in order to make an informed decision. Here are some questions you should ask:

• Does the software speed up processing?
• Is the software cloud-based?
• Is the software easy to use and will I receive training/support?
• How flexible is the software (in terms of needs and customisation)?
• Can it integrate with other systems?

How to evaluate the quality of education finance providers

A reliable way to evaluate the quality of education providers is to see what others in your position have said about the provider. From listening to others’ experiences you can get an idea of the quality of the product and the level of customer service.

Review sites and case studies are some of the best ways of finding the opinions of other schools and staff in similar positions to your own. Hearing the opinions of others in similar situations can be very useful in making an informed decision as to your next education finance provider.

You can read what some of our customers have said about Access Software by viewing our case studies.

Best practices for managing education budgets

Tracking and monitoring expenses

Tracking and monitoring expenses are critical for managing a budget effectively, by doing so, a school can ensure resources are being used effectively and efficiently, here’s why:  

• Controlling costs: schools can identify areas where costs are higher than expected and take measures to reduce costs. This can help schools avoid overspending.
• Identify trends: analysing previous spending can help schools identify trends in their expenses. This can help schools identify where costs are increasing or decreasing and respond to these changes accordingly.
• Allocate resources: by understanding where resources are being spent, schools can make informed decisions when allocating resources, ensuring the areas most in need are being invested in.
• Improve planning: by tracking expenses, schools can develop a clear understanding of their expenses resulting in more informed and accurate budget projections for the future.

Prioritising spending in education budgets

By prioritising spending, schools ensure that the areas that are most in need of resources are receiving them in order to have the greatest impact on student learning and achievement. By prioritising spending a school can:

• Maximise resources: the budgets that schools operate with are often limited, therefore schools must prioritise spending in order to maximise the impact of their resources.
• Address critical needs: schools should allocate sufficient resources to critical areas such as increasing access to technology or supporting students with special needs. Prioritising spending can make a real difference to the education and achievement of students.
• Measure impact: prioritising spending can also help schools measure the impact of their investments and make data-driven decisions as to where to allocate resources in the future to best improve student achievement.

Communicating with stakeholders about budgets

Keeping stakeholders informed on an educational budget is important to build support and trust from the stakeholders of the school. Stakeholders of an educational budget include the school board, teachers, students and parents to name a few. It’s important to communicate with these stakeholders to:

• Increase transparency: communicating with stakeholders gives them confidence that the school is allocating their budget effectively and responsibly and ensuring resources are being allocated to areas of the school that need it most.
• Build understanding: effective communication helps stakeholders understand how the budget is being used to better the school and increase student achievement. This can help build support from stakeholders such as parents and the wider community.
• Promote collaboration: communication allows stakeholders to feel involved in the plans of the school. Stakeholders can then provide feedback or alternative suggestions for how to allocate resources.
• Plan for the future: stakeholders that are kept updated will be more understanding of future plans and long-term solutions. Keeping stakeholders informed promotes confidence in the school's ability to achieve its goals.

Forecasting future education budgets

By forecasting future education budgets schools are able to anticipate potential challenges and position themselves to success in the future. Forecasting allows schools to:

• Plan: future expenditures can be considered and prepared for to ensure the school has the necessary resources to meet its objectives. Planning and anticipating expenses will allow the school to adjust their budget accordingly.
• Allocate resources: forecasting helps schools allocate their resources more effectively, this allows schools to prioritise spending on areas of the school that are most in need and help avoid overspending.
• Communicate: Forecasting allows schools to communicate their plans and financial goals to relevant stakeholders. Communication builds trust and support from stakeholders while promoting collaboration.

Understanding the education finance landscape

Key trends in education finance

Funding for EdTech: As technology becomes more important in education, schools are investing more in hardware and software to aid classroom learning. This includes tablets for student and teacher use, as well as investing in digital learning resources to enhance learning and revision.

Public-private partnerships: Many schools are looking to partner with private organisations to provide additional resources. This includes technical support, partnerships for fundraising, and other educational services for schools to extract the most from their budget.

Focus on equity: Schools are recognising the importance of equity in education finance and are working to ensure fair and equal allocation of resources to ensure that all students have the resources they need to succeed.

Use of data analytics: In order to accurately track financial performance and inform budgeting decisions, schools are increasingly using data and analytics to gain clear visibility of their school’s finances.

Regulatory and compliance considerations

Regulatory and compliance considerations are important in education finance to ensure that schools are adhering to legal requirements and using funds responsibly.

Government regulations: There are government regulations in place that schools must comply with, relating to education finance. These requirements are related to accounting, auditing, and reporting,

Tax: Schools must also comply with tax regulations relating to their finances, this includes paying tax on income and ensuring expenses are properly categorises and documented.

Grant compliance: Schools that receive grants may have to comply with the terms and conditions of the grant, including reporting requirements and restrictions on how the funds can be used.

Financing options for different types of institutions

State-funded schools

State-funded schools receive the majority of their funding from the government, this funding is used to cover operating costs such as salaries, maintenance, and educational resources.

Independent schools

Independent schools are not funded by the government and therefore raise their own funds to cover operating costs. This can include tuition fees as well as donations or investments from third parties or supporters.

Pros and cons of different financing models

Government funding

Pros:

• Provides a stable source of funding which can be used to cover operational costs.
• Can be supplemented with additional grants or funding from local authorities or other government agencies providing further financial stability.

Cons:

• State schools have limited funding compared to independent schools and funding may be subject to change due to government changes or budget cuts.
• State schools have less autonomy over their spending than independent schools. They may also be required to comply with certain regulations in order to secure funding.

Tuition fees

Pros:

• Schools have greater autonomy over how their budget is spent. This allows independent schools to react and adapt more quickly to changing circumstances.
• Independent schools can often be more innovative than state schools and there are fewer restrictions over what they spend their budget on. This could include new teaching methods or experiment with different educational technologies to improve the learning experience.
• In addition to tuition fees, independent schools have access to a variety of funding sources including donations and grants which can provide further financial stability.

Cons:

• Cost: As tuition fees are often significantly higher than those of state schools, this can create financial barriers for many families when looking at the options for their children’s education.
• Lack of diversity: Some independent schools may have less socioeconomic and ethnic diversity than state schools, which can limit students’ exposure to different backgrounds and perspectives.

What do Access Education Budgets and Finance solutions offer your institution

Streamlined budgeting processes

Every school needs to stay on top of its budgeting processes, with Access Education’s Budgeting Software, tedious administrative burdens and unclear financial future are a thing of the past.

Our secure, cloud-based software enables schools to track their expenses and monitor spending in an easy-to-use platform. Schools have access to forecasting tools that can help project future expenses, allowing them to plan accordingly.

Administrative burdens are eased due to a variety of automated features to ensure time is saved, increasing the efficiency of staff.

Customisable financial reporting

Access Education’s financial reporting capabilities allow schools to generate detailed financial reports tailored to specific needs. Schools can use these reports to gain a deeper understanding of their finances and make more informed decisions when it comes to resource allocation.

Access Education’s customisable financial reporting allows schools to gain insights into their financial performance in real time. Spending, revenue, and other financial metrics are at the tip of your fingers.

Reports can be presented in a range of formats, with users selecting specific data they want to include in reporting and customising the layout and formatting of the report as they see fit.

Integrated financial management

Not only is Access Education Finance a great tool for forecasting and reporting on a school’s financial position, one of the key benefits is its ability to integrate with other software.

Access Education Finance integrates seamlessly with a number of Access and other systems, including Access Education Budgets. This allows schools to manage their finances more holistically and efficiently.

By having a range of integrated systems, schools can benefit from improved efficiency, accuracy and visibility over the financial performance of the school as well as its progression towards goals and objectives.

Transparent budget tracking and monitoring

Throughout the financial year, schools will need to ensure they keep on top of their finances. Access Education’s software provides schools with the tools to track and monitor their finances in real-time, providing updates on expenses, revenues and budgetary balances.

Various scenarios can be prepared and planned for such as changes in staff, pay, pupils, income or expenditure and more.

Furthermore, Access Education’s budget tracking tools provide automated workflows that streamline financial processes and reduce administrative burdens. These factors mean schools can make more informed decisions and improve financial outcomes for their institution.

Flexible financing options and support

Support is always on hand should you have issues or questions about the software we provide.

As every school is unique, we tailor our pricing to each educational establishment. you can request pricing for your educational establishment by contacting our team.

What our customers say about our solution

Success stories from education institutions

When The Learning Partners Academy Trust chose to add Access Budgeting following their successful implementation of Access Finance just a year prior, the software enabled the Trust to have clear insights into how money is being spent, resource allocation became easier and metrics became more accurate. The seamless integration of the two systems also increased efficiency across the trust while being much easier for staff to get to grips with, compared to other providers.

Lisa, an education finance specialist from The Lighthouse Educations Consultancy also recommends Access Education Finance and Budgeting. Lisa has used Access software for years and claims the functionality and ease of use are what sets Access apart from other solutions.

Having real-time information to hand, allows head teachers to make decisions immediately about whether the budget will allow additional purchases that can improve their student’s education.  

Challenges faced by customers when working with providers

The Priestly Academy Trusts struggled to find support from other software providers so began to look for alternatives for finance software. After finding Access Education Finance, the benefits of implementing the software became clear. Access Education Finance was not only more cost-effective, but it also had the added advantage of seamless integration with the existing budgeting software, resulting in substantial savings in staff time.

The team at Access Education provided support to staff during the change of system to ensure a smooth transition to the new software.

Tips for finding the right education finance provider based on customer feedback

Searching for the right education finance provider is an important decision to make, therefore utilising the opinions of others in similar positions may help you make an informed decision. Here are some tips for finding the right Education Finance Provider:

• Research: research the provider’s feedback and reviews to gain an understanding of their reputation, quality of product, level of customer service and responsiveness.
• Enquire about price: it’s important to ensure you are not only getting a high-quality solution, but a cost-effective one as well. As every educational establishment is different, the software solution should be tailored to your requirements and an appropriate cost to match. Access can provide you with a price for your organisation’s specific needs.
• Take your time: don’t feel rushed into making a decision, take some time to evaluate your options and go with the option that best suits the needs of your organisation.

What next

With years of experience and over 9000 schools already trusting Access Education software, you can be confident that you are choosing the right education finance provider when you choose Access.