FEATURE FOCUS: FINANCE


more sign ups or if a fundraising activity has underperformed, we could make changes to the next one to increase profits. Reconciliation ensures the accuracy and integrity of financial information especially when reporting, auditing and for compliance which helps us maintain trust with our trustees. Relying on manual processes such as spreadsheets is a thing of the past because it takes time and drains resources. Because we are able to scan and attach invoices, receipts and evidence of funding throughout the year, we can save time when auditing because the data is already on the system. This allows us to manage the reconciliation process on a month-by-month basis, and we have saved a significant amount of time and resources when completing reports and audits.


Our staff can access the system remotely meaning they can carry on with work even if they are away from the office. With changing working habits after the pandemic and many favouring flexible working, we have the structure in place if any new regulations come into force.


Finance managers are also dealing with unexpected changes including the DfE’s £370m error in funding figures which means schools in England will be receiving £50 less per pupil than originally forecasted in 2024/25. Schools are having to revise their already strained budgets, and make impossible decisions.


As a financial manager at St Barts, I have seen first-hand that expenditure has grown due to inflation. The Academies Benchmark Report shows that per pupil, energy costs have increased by 15-45% and the average catering cost increased by one fifth. Staff shortages have also increased supply costs by around three-quarters and 88% of academies are expecting a decline in reserves. Schools are relying more on non-subject specialists and supply teachers to cover classes as they struggle to fill teaching jobs. Vacancies in England are 93% higher than pre-pandemic levels as a number of teachers leave the profession, this year’s teacher strikes demonstrated opposition to underfunding and low pay.


Budgets have become impossibly tight for academies and trusts, which means it’s critical that they have complete visibility of their income and expenditure and are able to map predicted, real-time and future spend with education software. At St Barts, we use the Access Education school-specific financial management software to help us streamline our processes - including audits - which are normally costly and time consuming. Challenges like these underlines why it’s important for schools to keep a tight grip on finances. An efficient reconciliation process is key to reducing administration tasks and especially the workload before annual audits. Without one, there is greater risk of inaccurate reporting, and you could make poor decisions when it comes to investments or resource allocation.


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A good reconciliation process can help to identify any potential risks or errors such as missed payments and identify trends that can help you save costs or enhance income generation. You can also ensure any inbound and outbound payments throughout the year are in line.


For us, tracking the money we have saved and lost is critical to making operational decisions. If we are losing money with an afterschool club, we could promote it to get


Keeping a track of financial data is key to maintaining operations and, without the right technology, it’s resource intensive, slow and poses greater compliance risk. We have been able to maintain financial control and manage our accounts which has saved costs. With academies legally required to submit an annual audit to the ESFA by 31 December, this time of year can be hectic. Having the right system in place to complete this process accurately, compliantly, without over- burdening staff is critical.


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