The best finance systems for schools: How to choose them and what you should consider

Picture this: You’re sitting at your desk, surrounded by invoices, expense reports and budget requests. The coffee you made has long gone cold and your screen displays yet another error in your attempt to reconcile accounts.

Before you know it, the final school bell rings to signal the end of yet another school day. It’s a stark reminder that your time is both limited and precious.

The truth is - education is rapidly evolving. So are the demands of school finances. As budgets tighten and scrutiny intensifies, the need for efficient, foolproof financial systems has never been more crucial.

With that in mind, we’re going to give you a helping hand in choosing the best finance system for your school. 

Why do schools need effective finance systems?

School environments present a unique set of challenges. This necessitates the need for an effective finance system.

These challenges stem from the complex nature of educational settings to the diverse financial activities you engage in. From budgeting for classroom resources to payroll management for staff, schools need robust financial systems to ensure smooth operations.

Let’s take a closer look at some of the specific challenges schools face in managing finances.

Challenges in managing finances for schools

The challenges for managing finances for schools include:

• Diverse expenditures. From faculty salaries, to classroom supplies, to facility maintenance (and more), it’s fair to say that schools have a wide range of expenditures. Managing these expenditures manually can lead to errors and inefficiencies.
• Complex budgeting. School budgets involve multiple categories, departments and funding sources. Tracking and managing them can be time consuming and prone to errors, especially when changes need to be accommodated.
• Compliance. As you will be aware, you’re subject to various financial regulations and reporting requirements. Ensuring compliance whilst managing day-to-day finances can be stressful to say the least.
• Limited resources. With tight budgets, careful allocation and monitoring of funds is crucial. Inefficient financial management can lead to overspending in certain areas and shortages in others.

 

Benefits of implementing the right finance system 

Given the challenges highlighted above, here are some of the benefits of implementing the right finance system for your school.  

• Streamlined processes: An effective finance system automates routine tasks like expense tracking, invoice processing, and payroll management.
• Accurate reporting: They provide real-time insights into the financial health of your school. You can make informed decisions based on reliable data.
• Improved budget management: You can create, allocate, and monitor budgets with ease. This ensures accurate allocation and no overspending.
• Transparency and accountability: Financial transactions are tracked and recorded. This enhances accountability among staff and helps in preventing fraud or misuse of funds.
• Data-driven decisions: Comprehensive reports and analytics offer insights into spending patterns and financial trends. You can make data-driven decisions and plan for the future.
• Cost and time savings: While there's an initial investment in implementing a finance system, there are long-term benefits – i.e. reduced admin, reduced errors, appropriate resource allocation.  

Choosing the right finance system for MATs or academies 

Procuring the right finance management system for Multi-Academy Trusts (MATs) and individual academies is a critical decision. In this section, we cover: 

• Key differences between finance systems for schools vs academies
• Evaluating scalability
• Evaluating system features
• Integration considerations 

Key differences between finance systems for schools and academies 

While both schools and academies require tools to manage budgets, expenses and payroll, academies tend to have greater autonomy over their financial operations.

Therefore, when evaluating finance systems, you should consider their ability to accommodate the varying levels of autonomy required by different MATs and academies.

Evaluating the scalability of finance systems for schools and MATs 

Scalability is a pivotal aspect to consider when selecting a finance system for your MAT/academy. As your institution expands and grows, your finance system should seamlessly adapt to handle the increasing complexity of your financial transactions.

It’s essential to choose a solution that can accommodate both individual academy requirements and the collective financial needs of the MAT.

Evaluating finance system features for academies' unique needs 

As you’ll be aware, academies operate differently from traditional schools. Often there is more flexibility with the curriculum and a focus on specific areas.

With that in mind, your chosen system should provide features tailored to your unique requirements. Look for systems that offer:

• Fund allocation
• Grant management
• Reporting capabilities 

And when you engage with suppliers, always question, “Will this align with the financial intricacies of my MAT?” 

Considerations for integrating finance systems in academy trusts 

When selecting software for your MAT, it should be easily implemented across your multiple trusts. Your chosen system should facilitate centralised oversight while allowing individual academies to manage their finances effectively.  

The ability to consolidate financial data, automate inter-academy transactions and generate consolidated reports is vital.  

Implementing a finance system for schools: best practices 

The successful implementation of a finance system for your school is crucial. In this section, we’ll offer some best practice guidance on a smooth implementation, covering:

• Assessing your unique needs
• Ensuring implementation success
• Strategies for a successful implementation
• Training and support 

Assessing the financial management needs of your school before implementing a system 

Before diving into your procurement, really consider what your challenges and needs are – as opposed to thinking about system functionality. Think about:

• The size of your school
• The complexity of your financial transactions
• Specific reporting requirements
• Budget 

By assessing these key elements, you are laying the foundation for selecting a finance system that best aligns with your school’s requirements and your biggest challenges.

Ensuring successful implementation of a finance system for your school 

As an education professional, you are an expert in planning. And ensuring successful implementation hinges on effective planning and execution.

Define clear goals and objectives and establish a timeline that takes into account potential challenges and milestones. And communicate this with your potential providers!

You should also involve key stakeholders. These could include finance staff, administrators and even school governors. This will ensure buy-in and engagement throughout the process.

Strategies for managing change during the implementation of a finance system for schools 

As with any new system, your new finance software will involve changes in processes, workflows and responsibilities. To manage these changes, foster a culture of open communication and transparency. Address concerns and uncertainties proactively and involve your team in the decision-making process where possible.

A reputable provider should help you navigate change management and will offer ongoing support during implementation and throughout your time working with them.

Training and support for staff when adopting a new Finance system 

Transitioning to a new finance system involves proper training and support. Afterall, you will be using the system on a daily basis. Work with your provider to carry out comprehensive training sessions that cover all aspects of the system – from data entry to generating reports.

When looking for a provider, ask them what support they offer and any training tools available, such as:

• Video tutorials
• Guides, eBooks
• In person/remote demonstrations 

Next steps

Selecting, implementing, and maintaining an effective finance system is a crucial journey for schools, academies, and Multi-Academy Trusts (MATs) alike. The decisions made in this realm can greatly influence the efficiency, transparency, and success of financial management within your setting.

As we've explored, there are several vital considerations, strategies, and best practices to guide this process.

From understanding the unique financial management needs of your institution to evaluating the scalability of finance systems for growth, every step in the process demands careful planning and meticulous execution.

The alignment of technology with educational goals is key, and this is particularly true in the realm of finance management. The finance system chosen should reflect the autonomy and requirements of the institution, whether it's a single academy, a diverse MAT or a maintained school.

As schools continue to adapt to the changing educational landscape, the role of finance systems becomes increasingly central. These systems provide not only accurate financial tracking and reporting but also the opportunity to streamline operations, optimise resource allocation, and focus on the core mission of education.

By embracing best practices and tailoring solutions to the unique needs of schools and academies, financial management can become a strategic asset that supports you and your pupils.