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UK
DanmarkFunding for UK nurseries, multi-academy trusts (MATs), and colleges is largely calculated on a per-pupil basis. We discuss how education finance leaders can combat the debt that increases as pupil numbers decline by investing in an education finance system with real-time data analysis.
Government research states that “there is a clear link between spare capacity and financial fragility in local authority-maintained primary schools,” with unfulfilled spaces accounting for an estimated two-fifths of the increase in debt among schools.
Are you an education finance leader needing better oversight and control for your complex academy structure? Contact us or visit our market page today to discover how Xledger can enhance your financial management, enabling you to continue delivering high-quality education.
Schools and colleges need real-time insight to manage funding pressures
Many schools and colleges are facing severe budget cuts year after year. Added to their diminishing budgets, institutions that leverage on-premise or legacy finance management solutions must factor in the costs of excessive contracts, hardware and maintenance, and system upgrades.
Finance leaders in nurseries, primary schools, and colleges cannot expect to empower their budget holders to be more accountable if they themselves cannot access real-time data. It’s clear then that, to save money, save time, and empower budget holders, CFOs must provide them with self-serve, intuitive finance management software.
Without real-time consolidation, MATs struggle to control finances
Unlike local authority schools, multi-academy trusts operate across multiple schools with different cost centres, income streams, and reporting requirements. Additionally, MATs are subject to stricter financial reporting, meaning they rely heavily on consolidated, real-time data.
Without cloud-based education accounting software, chief financial officers (CFOs) cannot properly assess their academy’s financial position, and are left reporting to trustees with limited historic evidence that only provides a backwards view of the MAT’s finances.
Consequently, trustees feel unempowered by the financial data presented to them, having to make key business decisions without real-time information or a system that provides an intuitive user experience. The larger consequence? The quality of education plummets, and students suffer.
Who are the key stakeholders? And why do they need real-time data?
The key stakeholders in educational institutions vary depending on the structure — if the school is an academy, run by the local authority, an independent institution, or a Special Educational Needs and Disabilities (SEND) school. Common stakeholders include school business managers, trustees, operations officers, and department heads.
Regardless of structure, one thing is clear: the role of a CFO is changing. EY reports that over a third of surveyed CFOs feel pressure to create value in their organisation, rather than simply optimise. As a result, CFOs must advocate for better financial oversight for all key stakeholders. But why? The Education & Funding Skills Agency states that:
“Maintaining and building the financial and business skill and knowledge in the sector is important so that school funding continues to be managed well and used effectively to best meet pupils’ needs.”
In essence, education finance systems that provide real-time data can empower stakeholders to make informed business decisions when monitoring budgets, scenario planning, and closing the visibility gap between finance and department heads.
As a result, the educational institution completes its mission of educating new generations.
Empowering stakeholders with education accounting software
Real-time visibility is crucial for schools and trusts as it ensures stakeholders make confident, business-savvy decisions that benefit their students. By implementing true-cloud finance software, MATs are better equipped to navigate funding complexities, gain financial insights, and consolidate multi-academy data to support fund allocations across the structure.
Likewise, schools and colleges that invest in school finance software can empower key stakeholders with live dashboards and intuitive data visualisation tools, both of which enhance the institution’s ability to provide high-quality education to its pupils.
Book your free demo to discuss how Xledger can empower your educational institution’s finance team with real-time data and automated processes.
FAQs
Live reporting tools provide statements, risk indicators, cash flow, and grant utilisation in one unified view, all in real-time. This reduces the effort it takes to produce board packs and strengthens data accuracy, improving overall regulatory compliance.
Integrating the finance system with student management systems, HR/Payroll software, and Customer Relationship Management systems removes manual data duplication and data siloes. It ensures that financial information in a college’s finance system reflects real‑time operational activity, such as enrolment changes or staffing adjustments, and supports consistent data across departments.
User-based dashboards turn complex financial data into digestible, visual insights. From clear insights, stakeholders can instantly see budget performance and funding utilisation, and proactively mitigate risk. This encourages stakeholders and non-finance users to make financial oversight a part of everyday conversations, boosting confidence and decision accuracy.
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Moving Beyond Legacy Systems: Future-Proofing Finance
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Customer story
Arts University Plymouth
Arts University Plymouth is an independent, specialist art university with an outstanding reputation for innovation.
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