What is the best financial accounting software for schools?

Selecting the best financial accounting software for schools

Accounting software for schools, academies and MATs should be:

#1 Exclusive to the education sector

While there are plenty of finance management solutions available, choosing software which is exclusive to the education sector can provide a wealth of benefits. Schools and trusts have unique requirements, regulations and processes, from Department for Education (DfE) and Education and Skills Funding Agency (ESFA) compliance to the reporting complexities of growing MATs, which make tailored software a necessity.

While generic accounting software may provide the basic functionality required by school finance managers, it’s unlikely to provide the level of specialist support they need. Instead, prioritise school accounting software which is exclusively designed for the education sector. This will cover the needs of schools, academies, local authorities and MATs, so all parties can have complete confidence.

#2 Designed by education specialists

As educational institutions have unique requirements, the best financial accounting software for schools should be designed by education specialists. By leaning on their expertise, accounting software can be designed to tackle common challenges faced by educational institutions and offer support with their processes, providing the ability to respond to challenges with ease.

Importantly, school accounting software shouldn’t be so complicated that only finance professionals can make sense of it. Education specialists will be aware of the variety of individuals involved in school finance management and can ensure this is factored into the usability and design of the software.

The end result is accounting software that is intuitive and easy to use for school finance professionals and non-finance staff alike. To get the most out of your software, look for a provider that is focused on the education sector and has complete expertise in this area.

#3 DfE and ESFA compliant

This is possibly the most important factor: make sure you check that your prospective software provider offers compliance with key regulations. In particular, accounting processes need to follow DfE and ESFA requirements, and the best software will also offer support in the production of statutory consistent financial reporting (CFR) and statement of funds available (SoFA) returns.

When completing your research into the different software providers, look out for software that supports DfE automation. Not only will this ensure that your school, academy or trust remains compliant, but it will also foster growth and scalability.

#4 Cloud based

In today’s technology-driven world, educational institutions should be opting for cloud-based accounting software. This enables 100% secure access anywhere, anytime, for authorised users only.

As users will have remote access, cloud-based software perfectly meets the needs of hybrid or remote teams, or those managing the finances of a MAT across multiple sites. With connected cloud-based software, there will be no more trawling through archaic systems or trying to access siloed data to find the right information. 

Instead, users can see a top-level view of a school or trust’s financial performance, or dig deeper through detailed financial reports. Making financial information easily accessible for authorised users and stakeholders can also help to provide a more streamlined employee experience, which can contribute to a positive working culture.

#5 Built with reporting in mind

Getting the data you need when you need it shouldn’t be a difficult task. The best school accounting software should make it simple to produce comprehensive reports that provide insights into the organisation’s performance, for both finance and non-finance professionals. 

If your school accounting software has clunky or limited reporting capabilities, this can lead to unnecessary roadblocks that will cost you time and, crucially, money – especially if issues are not found early enough.

When accounting software is designed with reporting in mind, trends, potential issues and opportunities can be identified with ease. Staff can act proactively rather than reactively, making data-informed decisions before issues have even come to the surface.

#6 Suitable for the scale of your organisation

Different requirements will exist for different institutions – for example, a small private school will not have the same needs as a large state school or a MAT. When deciding on your provider, make sure you choose a scalable education software solution that can meet your needs now and in the future. 

While meeting you current needs should be in focus, if there are growth plans, it’s important to opt for a scalable solution. Otherwise, you’ll face challenges further down the line and may even need to find a new software solution, which could slow growth and hit your school with additional costs.

#7 Affordable

In the education sector where budgets are limited, affordability will always be a key concern. If you already have a set budget to work with, this can be used to inform your search – just ensure there are no hidden costs from the provider. If you prefer to research the market first and have a good understanding of costs, you can request realistic budget for the project, putting together a business case if needed to highlight the importance of financial accounting software. It might be helpful to look at return on investment and areas where software can save you money to help get buy-in where necessary.

What financial accounting software for schools is best for your setting?

Here are some key steps you can take to help choose the best financial accounting software for your school:

Consider the needs of your school, academy or large-scale MAT

Ensure the right people are in the room to represent all functions that will be impacted by your choice of software.

Do you have a hybrid, remote or mixed-location team that needs off-site access to your accounting software? Are you a MAT that needs centralised control over banking, journals and purchase invoices? Then cloud-based software should be your priority.

Will you have staff from non-financial backgrounds downloading reports to present and analyse performance? Is your institution a small private school with very unique requirements? Focus on finding software made for and designed by education specialists. 

Research the market

Understanding your options is essential. Look into the various software providers in the current market, keeping one primary consideration front of mind at all times: they should specialise in financial software specifically for the education sector. You will be able to get a good baseline from online research, but you may need to contact providers to understand the specific details of their offerings and find out full prices. Many will be happy to provide a software demo free of charge.

When researching financial accounting software for schools suppliers, find out what customer support is available. This is an essential point to consider that can be make or break for schools – if a supplier does not offer robust support for implementation and ongoing use, you will need to find additional resources in house. Plus, the supplier is the expert and software switchover, configuration and troubleshooting should be dealt with by them to ensure reliable usage. It might seem unnecessary if the process goes smoothly at first, but whenever you have a question or something isn’t working the way you would expect, expert support will be invaluable.  

Audit existing software

Before diving in and choosing a new financial accounting software for schools package, consider what you have in house already. What are the shortfalls and pain points? What additional functionality do you need? And what currently works well? Speak to the people who use the software in their everyday jobs – ask them to be completely transparent to help with your research. Even if you don’t use any specialist software currently, it’s worth going through an audit to consider what will be different, how you will adjust and what data you will need to port over.

If you have software you want to keep using, consider compatibility. Software from different providers is likely to integrate poorly, if at all. Using a variety of software modules from the same provider to cover different needs is usually the most efficient, accurate and user-friendly approach.

Features to consider when choosing financial accounting software for schools

These are some of the core features to look for when selecting a software provider:

• Reporting capabilities. Ensure built-in reporting options will give you the data you need – look for customisable, flexible, simple reporting that presents everything in a streamlined way.
• Explore the ways different software options can automate necessary tasks, which will save time for your teams. Within payroll and accounting, many processes can be cut down or automated, saving hours of administration time every month.
• Compliance. Look for software that will support you with audits and any necessary submissions, such as the academies accounts return (AAR) for the DfE.
• Data security. Schools store and process enormous amounts of sensitive data. Education-specific software should have excellent data security protocols in place, but it’s important to check it will comply with your internal policies.
• Self-service features. If you can empower teachers and other staff to manage their own data and retrieve essentials such as payslips, you can save time and increase workplace satisfaction.
• Ease of use. User friendliness is a key reason to choose new software and there’s no need to settle for poor user experience. Make sure the option you pick will make everyday tasks simpler.
• Budgeting and forecasting. Finance software can help create accurate, balanced budgets and forecast for the future.
• Integration with other modules. You may move on to use additional finance software modules, as well as HR software when running your school. Look for software options that can cover it all.

Want the best accounting software without any compromise?

Access Education’s cloud-based financial management system offers an extensive suite of features and flexible, tailored functionality, as well as DfE automation and specialist support for schools of all sizes. If you’re concerned about disrupting your existing processes, Access Education also offers remote implementation and training by a team of experts, helping your institution adapt to change smoothly.

Ready to explore your accounting software options?

With everything we’ve discussed in mind, it’s clear that the best accounting software for schools should prioritise scalability, usability and compliance. Choosing a solution that works for you will require considerable thought about your institution’s unique needs and plans for the future. 

If you’re currently looking for specialist software to implement for your educational institution, you can learn more about Access Education’s school accounting software or find out how to choose the right financial system for your school in our helpful report.