Private schools: Is it time to ditch the spreadsheets in favour of education budgeting software?

An increasing number of independent schools are choosing to adopt education budgeting software as a way of speeding up processes and having full oversight of their financial management. Despite these benefits, though, it’s important to note that not every school is ready for such change.  

That’s why, in this article, we aim to present a balanced overview. Here at Access Education, our aim is to assist you to reach a decision that best aligns with your schools’ needs and objectives. So, without further ado, let’s begin. 

What is education budgeting software? 

Education budgeting software is a financial tool specifically tailored to the educational sector, such as private schools, to simplify their financial management processes. It goes beyond traditional spreadsheets, offering a more comprehensive solution for: 

• Tracking income and expenditure: As a centralised platform, you can monitor all financial transactions. These include tuition fees and grants, operational expenses and staff salaries. With real-time tracking, you can gain a precise understanding of your school’s financial health at any given moment.  
• Setting goals and planning: You can establish clear financial objectives and create budgets aligned to your overall mission/objectives. And you can create detailed budgets for different departments, projects or initiatives. This ensures efficient resource allocation.  
• Forecasting and reforecasting: You can use historical data and trends to generate accurate forecasts, and you can adjust financial plans based on changing circumstances. This allows for proactive decision-making.  
• Planning for different scenarios: You can model different scenarios, such as enrolment fluctuations, funding changes or unexpected expenses. In doing this, you can develop contingency plans and make informed decisions in response to potential challenges.  
• Acting accordingly and quickly: With timely insights and alerts, you can respond promptly to financial deviations, ensuring corrective actions are taken. This will maintain financial stability.  

To summarise the points above, education budgeting software can empower educational settings to manage their finances, optimise resource allocation and navigate the (often complex) financial landscape of the sector.  

We’re now going to look at the specific challenges facing independent schools and explore how education budgeting software can help.  

How can education budgeting software help independent schools? 

Whilst the benefits heighted above are attainable in all settings, we understand that independent schools face their own unique challenges. Here at Access Education, we’ve worked with countless independent settings, so are well-versed in those pain-points you face.  

Let’s now explore some of these challenges (and solutions) further.  

Precise VAT planning 

Independent schools often have to navigate complex tax regulations. This could include Value Added Tax (VAT) on fees. This regulation is not currently enforced but may become applicable in the event of regulatory changes. 

Education budgeting software can calculate and track VAT obligations accurately, rather than having to rely on manual input/calculations on a spreadsheet. As we know, this can lead to inaccuracy.  

Teacher and staff salary management  

The salary structure within independent schools differs from the pay scale structure in play within state-maintained settings. With differing salaries, rewards and bonuses, this can add a layer of complexity to salary management.  

By using education budgeting software, you can allocate funds for salary increases, bonuses and benefits while ensuring that budgets remain balanced.  

Efficient building RAC (Repairs and Capital) budgeting 

Many independent schools are housed in older buildings. Often these historic structures will require maintenance and upkeep costs, which can be very different to that of their modern, state-funded counterparts.  

Budgeting software can help private institutions easily plan and forecast for these repairs and improvements. This ensures that funds are available for projects like infrastructure upgrades and renovations.  

Scholarship and financial aid allocation 

Do you offer scholarships and financial aid programs to support students? If so, education budgeting software can assist with the allocation of resources for these initiatives.  

For example, a budgeting platform can help you track scholarship awards, evaluate their impact on your budget and adjust findings accordingly to meet enrolment and diversity goals.  

Tuition fee modelling and scenario planning 

One of your biggest challenges is to remain competitive and sustainable. For this reason, you need to make informed decisions about tuition fees. With education budgeting software, your setup involves customisation by product experts that takes into account differing fee structures. You can then amend these as required and create any number of scenarios to take into account any changes.  

For example, if you increase your fees or if pupil numbers decreased you can model out what that means for your budget.

With this simulation, you can measure the potential financial impact on tuition fee adjustments. This will help you find the right balance between affordability and financial sustainability.  

How can education budgeting software help independent schools in times of change? 

You don’t need us to tell you… independent schools often face periods of change and uncertainty. Shifting enrolment patterns, economic fluctuations, global pandemics… The list goes on.  

In this section, we’ll uncover how education budgeting software can become an invaluable asset during these times of change.  

• Plan for the knowns and the unknowns: You can create contingency budgets for scenarios like functioning enrolment or sudden decreases in funding. This ensures you’re well-prepared, should these changes occur.  

• Easily respond and react: Agility is crucial in times of change. With budget software, you get real-time financial data. This allows you to respond quickly to emerging financial trends or issues. If necessary, you may need to reallocate funds to address unexpected expenses. Budget software can make this process easy.  
• Ensure continuity of curriculum and pupil learning/outcomes: Maintaining quality of education is paramount, particularly in fee-paying settings. Budget management software helps independent schools allocate resources to ensure curriculum and pupil learning outcomes remain a top priority.  
• Provide comfort and security to staff: When you offer transparency over financial planning, it can boost staff morale and confidence during times of change. With education budgeting software, you can share financial insights with staff. This will foster a sense of security.  

By being proactive and maintaining a sharp focus on educational quality, budgeting software can become a cornerstone of resilience and adaptability in times of change.  

Benefits of using spreadsheets for managing budgets 

While education budgeting software can present numerous advantages, it’s important to recognise that spreadsheets also have their merits. Here at Access Education, we understand that different schools will have their own unique preferences, needs and challenges.  

Here are some benefits of using spreadsheets for budget management. 

• Cost effective: Widely available and often pre-installed on computers, spreadsheets are a cost-effective option for many school establishments.  
• Customisable: Spreadsheets are highly customisable. You can tailor your budget templates to suit specific requirements and accounting practices. This means you can create intricate, personalised budget models that align with your financial needs. 
• User-friendly: Most are familiar with spreadsheet software, so little to no training is required for basic use of the software. Although, more advanced formulas may be a little more complex and not suited to the spreadsheet novice.  

Spreadsheets offer a practical and cost-effective solution for budget management, especially in schools with limited resources, or with more straightforward financial needs.  

It’s important to recognise that both spreadsheets and budget management software have their place. Your choice will ultimately depend on your specific circumstances and preferences.  

Do the benefits of spreadsheets outweigh the benefits of education budgeting software? 

While the advantages mentioned earlier certainly make spreadsheets an appealing choice for budget management, it's worth emphasising that school budgeting software also offers these same benefits. 

• Cost effective: Collaborate closely with your software provider to grasp the software's Return on Investment (ROI). While there might be an initial expenditure, aim to recover these expenses through time savings and reduced staffing costs. 
• Customisable: Opt for a provider that offers customisable setups. Recognise the importance of having control over this aspect, as each independent school is unique. 
• User-friendly: The intricacies of budgeting software should remain behind the scenes, with a user interface that is exceptionally user-friendly. This simplicity should benefit both newcomers and staff members with over two decades of experience in the school. 

Bottom line here: Whilst spreadsheets boast obvious advantages, these plus points can be achieved with education budgeting software, too.  

Potential drawbacks of spreadsheets 

While spreadsheets offer various benefits for budget management, there are also some potential drawbacks worth noting. It’s important to consider these limitations when deciding to use spreadsheets or education budgeting software.  

• Manual setup and maintenance: Creating complex budget models will require manual setup. This can be time-consuming and can lead to human error, impacting the accuracy of your budgets.  
• Limited collaboration features: Sharing spreadsheets and collaborating on them can be challenging. Have you ever had to work on the same document simultaneously? Version control issues may arise, making it difficult to track changes and maintain data integrity.  
• Functionality and specialised features: Spreadsheets do not allow for more complex tasks, such as automated forecasting, real-time data integration and advanced financial modelling.  
• Scalability: If your school grows, your financial needs may become more complex. Therefore, spreadsheets may become less effective at managing larger volumes of data and more intricate budgets.
• Data security: When sensitive financial information is stored and shared through email or cloud-based services, spreadsheets may pose data security risks.
• Lack of real-time updates: Spreadsheets typically do not offer real-time data updates, meaning users may need to manually refresh or input data to reflect the most current information. This delay can impact decision making. 

While valuable, spreadsheets do have their limitations. As mentioned, your choice between spreadsheets and software should be guided by your school’s specific needs, budgetary constraints and the complexity of its financial management requirements.  

How Access Education Budgets can support your independent school 

There are many financial budgeting tools on the market, and a small number dedicated specifically to the education sector. Access Education Budgets is one of those options to consider.  

We’re now going to highlight some of the ways in which we can support your independent school in achieving its financial management goals.  

Unlimited scenario planning 

With Access Education Budgets, you can set any number of scenarios to cover all your budgeting options. Whether you’re planning for growth, responding to changes or optimising resources, we have the flexibility you need.  

Dynamic forecasting and reforecasting: Your circumstances may change throughout the year. Our software allows you to forecast and reforecast as needed. This ensures your budget remains aligned to evolving financial realities.  

Comprehensive reporting: We offer a wide range of standard and customisable reports. From financial summaries to stakeholder reports, you’ll easily have the insights you need to make informed decisions.  

Tailored configuration and setup: Every independent school is unique. That’s why we’ll work closely with you during our dedicated configuration and setup process.  

Educational experts at your service: Our team has been at the forefront of developing and enhancing budget software for educational institutions for years. From our dedicated support and customer success teams to product experts and implementation consultants, we provide comprehensive assistance throughout your journey with us.