Budgeting
School financial management software vs budgeting spreadsheets: Which is better for independent schools?
Using school financial management software delivers many benefits for independent institutions that take care of their own finances. Switching from manual methods and spreadsheets can save time, reduce human error and ultimately free up school budget, but there are some additional considerations before implementing a new system. In this article, learn all about financial management software for independent schools, along with the pros and cons of using it in place of spreadsheets.
10 minutes
Written by Jane Gibson - School Financial Management Expert
What is education budgeting software for independent schools?
Education budgeting software for independent schools is specialist software designed specifically to meet the financial needs of the sector. No two independent schools are the same, and education software can be adapted to support individual requirements around budgeting, tuition fee management, resource allocation, financial planning, reporting and more.
One of the most important considerations when selecting software is ensuring the provider has experience of the education sector. Schools — and in particular independent schools — have very specific requirements when it comes to budgeting, finances and fees. Financial management software for the education sector is highly customisable and can even be school specific, making it simple for independent institutions to manage budgets effectively without the need for additional resources.
Independent schools have distinct revenue streams and operational models that set them apart from state schools. Any new software that’s introduced must be able to meet their requirements.
School financial management and budgeting software can be used by independent schools to:
Track income from tuition fees, grants and other sources, and offset it against expenditure
The largest expenditure is likely to be staff salaries — these and all other costs can be tracked in real time.
Create forecasts and financial models
Finance systems can collate data and track trends for future forecasting, providing strong datapoints to set goals and allocate budget. Future scenarios can be modelled to understand the various outcomes, including changes to expenses, teacher turnover, fee updates, and levels of enrolment as the proportion of pupils attending private schools has declined slightly.
Budget effectively
Budgets and financial goals can be created across departments and areas, ensuring accountability and helping to meet pre-defined financial objectives.
Benefits of education budgeting software for independent schools
- Simple and accessible. School financial management software is easy to use, even by non-finance professionals. It can be rolled out to members of staff in finance and administration departments as well as other support and back-office functions, as required by the individual school.
- Precise planning. Education budgeting software allows you to navigate regulations and expenses including teacher salaries, VAT obligations, site repairs and more. We know this is particularly important for independent institutions — school premises often include older structures that require regular, specific maintenance, plus staff pay scales and benefits are likely to differ from those in state schools. These factors and many more can increase the complexity of budget planning for independent schools.
- Financial flexibility. You will have the ability to model different scenarios, giving you the means to plan appropriately. By creating contingency budgets, you can respond flexibly if unexpected challenges occur, maintaining financial stability through tough times and finding growth areas in the future.
- Continuity of service. Independent schools must find ways to ensure the curriculum is adhered to and pupil learning outcomes remain on track, regardless of any bumps in the road. With school financial management software to help track, plan and adapt, there is one less thing to worry about.
- Tailored reporting. Bespoke, tailored reporting provides deep financial insights at the touch of a button. No Excel formula can compare to the speed and efficiency of data manipulation.
- The option to work with specialist providers who understand the education sector. Software for schools is most effective when implemented and managed by a specialist provider that understands the education sector inside out and knows the pain points faced by independent institutions. We will be happy to deliver full customer support as required, ensuring you can benefit fully from all available features.
Education budgeting software for independent schools: key considerations
School financial management software offers a multitude of benefits, but there are some important considerations to take into account before implementing it. These include:
- Costs. There will likely be initial and ongoing costs for school financial management software. When considering software options, build cost savings such as administration time, reduced human error and better budgeting into calculations to get a true picture of the costs. Your software provider can also provide details regarding return on investment (ROI) to illustrate the ways that systems add value.
- Implementation. While your provider can manage much of the process, you should think through rollout communications and logistics internally. It is advisable to implement new software outside of term time to reduce the pressure on your organisation and allow for setup, training and familiarisation with the system.
- Data migration. Your new system will manage data for you, but you need to decide what data will be ported over and how it will be fed in on a continuous basis. Allow plenty of time for data auditing and cleanup ahead of implementation.
Examples of education budgeting software for independent schools
These are some examples of budgeting software in action:
- Tuition fee management and modelling. Understand the true costs of service provision and gain a complete picture of your school’s financial health with tuition fee management components. Draw on past data and run future projections that will help you make informed decisions about school fees based on facts and figures.
- Resource allocation. Independent schools require the means to allocate funds across various departments and facilities to maintain operational and educational excellence, taking stock of all forms of income from fees, to grants, to scholarships and more. Sophisticated planning features can run different scenarios, giving full visibility over the benefits and pitfalls of different strategies. Through this, allocation strategies can be developed and implemented that will fully support the needs of your school.
- Strategic financial planning. What revenue can you expect to generate throughout the next school year? Will expenses change? Do your financial strategies support the school’s growth trajectory and future plans? Strategic planning software allows you to forecast revenue and expenses as well as analysing long-term trends so you can plan for your school’s future.
- Tailored reporting. Independent school management requires proactive reporting on current and forecasted financial positions, as well as reporting to satisfy the needs of various departments, audits and the board of trustees. School financial management software can deliver automated and bespoke reporting to meet all needs across every department.
Access Budgets is a prime example of education budgeting software for independent schools. It can offer all these outlined features and more, making it simple for schools to maintain a sustainable financial model and plan effectively for the future. Access Education is a leading name in the sector and we are trusted by 8,500+ learning institutions. Book a free demonstration of our products to find out more.
Why is Microsoft Excel used for school budget management?
Many independent schools use Microsoft Excel for school budget management, simply because this is the way it has always been done. Spreadsheets are widely available and familiar to many, so can they be an effective way to collate, process and store financial information?
Independent schools often use Microsoft Excel for budgeting because:
- It is cheap to use
- Spreadsheets are part of most standard software packages
- Most legacy systems have been set up on Excel
Ultimately, many schools feel that unless there is an immediate or irreconcilable problem, there is no need to make changes to legacy systems.
The limitations of Excel for school financial management
While Microsoft Excel might seem like a simple solution on the surface, it can ultimately prove to be limiting and even highly problematic for independent schools. Here’s why:
- Spreadsheets rely on manual data entry and manipulation. This makes them prone to human error – even with the right training, staff can easily make an honest mistake which affects all subsequent calculations.
- Storing information in a spreadsheet may not be sufficient for data protection. When data is handled manually, then so too is data protection. Are spreadsheets secure enough? Can data be updated as often as is required? Who has access to Microsoft Excel and could they obtain confidential data? These are all important questions to consider carefully.
- Information can be lost. Even when spreadsheets are hosted on the cloud, there is the potential for data loss, or for overwriting when people are working on a spreadsheet at the same time. This can be limited with back-ups and good version control, but there is still a high chance of data loss, especially with extensive usage over long periods of time.
- Spreadsheets take up valuable time. Developing formulas and templates, manually updating data and cross-checking numbers across departments can take up a considerable amount of time. Staff members completing these tasks could be adding value instead.
Why independent schools should consider switching to education budgeting software
Microsoft Excel has its uses, but there are inherent risks and numerous pitfalls when they form the basis of a school’s financial management system. Relying too heavily on spreadsheets can cause data loss, compromise confidentiality, risk budget integrity, take up a disproportionate amount of time and much more. Independent schools promise educational excellence and financial management software can help support this ethos by:
- Forecasting and modelling future scenarios for financial resilience
- Protecting important, confidential data
- Backing up all data in the cloud
- Saving money on budgeting that can be allocated elsewhere
- Making financial planning and management a simple, streamlined process
Related resources
Find out how our school financial management software can help your independent school plan for the future
