Education in India is provided by Public schools and Private schools. Public schools are funded by the center, state, and local governments. Private schools run on tuition fees and donations received from charities. In both domains, the effective management of the funds is very crucial to provide holistic education to children.
With increased competitiveness and pressure to ensure more enrollment, finances should be managed in such a manner that it does not reach a crisis point.
When decisions are not taken properly, the administration of the school suffers a drastic blow. The quality of education starts diminishing. Hence the utilization of funds must be done judiciously. The decision-makers, and implementers should work in proper coordination such that the finances ensure maximum benefits for students.
Not only correct decisions but also appropriate implementation is the determining factor for a school to perform best. Proper account maintenance is as necessary. Because financial data gives an idea of how well & where the money is being spent. Incorrect records of finances will be followed by poor decisions. When the government is funding the school fully or partially, records of expenditure are sent to the education department.
Track your enrollments, that is the source of revenue. The money involved is huge so there is no scope for any error or mistake. Blunders may get blown into full-fledged crises. The accounts department of a school deals directly with the fees deposited by parents which is the main source of revenue generation. Hence everything must be checked and double-checked.
This is a boon for people working in the accounts department. Accountants have huge data to add and calculate, deduct and update. The data that they deal with is the money of parents, schools, and the government. This data is the lifeline of a school. Any error in accounting directly wreaks havoc, especially in big organizations like schools and colleges.
Schools have to make sure they use the funds in the most optimal manner. Members of management are accountable for proper planning for disbursing the funds.
Briefly these are the points that should be taken into serious consideration
- Sound policymaking
- Short and long-term planning
- Fitting well with digitization
- Making the system transparent
- Cutting down on unnecessary expenses
Short and long-term planning
Distribution of funds based on long-term and short-term goals to achieve by the schools. These records should be free of any tampering. because legal actions might be taken by the government. Complete planning of short-term and long-term goals. A unanimous decision should be taken before finalising expenditure distribution of funds in a carefully planned manner and effective system for managing everything on a digital platform A goal must be fixed run finances accordingly. Alternative options should be considered for reducing expenditure.
The account management system provides the features to generate graphs and charts, that help in visualizing the profits generated or losses incurred. Helps in making better decisions without any delays. Graphs give a good idea of improvement, and better analysis after generating graphs showing progress or falling back on a weekly, or monthly basis. As all the details will be available on a single window, policy-makers can analyse better which areas are draining funds and which are generating.
Awareness about the educational policies of center and state government
This is very crucial for a sound decision. Unless a school is fully informed about the changing policies, it cannot take firm and effective decisions for the allocation of funds.
Cutting down on unnecessary expenses
A big number of staff is also a drain on the funds. With account management software, one or two persons can handle everything with supreme efficiency.
When a digital payment portal is available, there is no need for staff to run to the bank to and fro for depositing and withdrawing money. Processes or systems which are sucking money with no fruitful results can be terminated at once. With digital platforms the expenditure on stationery like paper, pen register books will reduce considerably.
The most effective way to optimally manage finances in school is by using
an account management software.
Embrace the latest technology
Once upon a time we had thick registers, then we had one dimensional excel sheets for recording the finances of the school, life ran at a slow pace and everything was fine but today this method is not efficient.
Data entry on excel sheets and then emailing it every month to the members of management to examine is a time-consuming process. Time is money and draggy work processes should be merged with a digital platform to save time.
Digitization offers the freedom to record the data at one computer and access it from any device at any time from anywhere. The cloud-based school management software provides give this benefit to the trustees of the school. Account Management Software
Personnel with good experience in accounts
For good financial management, the primary requisites are personnel with good knowledge of accounts and finances and experienced policymakers. It is important to have modern tools for calculating everyday finances. This system is handy even if a school does not have highly experienced staff in the accounts department. As all the format is already present in the school management system.
Making the system transparent and removing corruption
The data of the school’s account details will be available online and accessible to everyone who has permission and is responsible for it, this will eradicate fraud and allocation of funds for personal needs. transparency in the system will implement utmost trust and a suitable decision-making process. It increases responsibility.
The fast, organized, and systematic system
School ERP makes record keeping fast and timely, it is properly arranged and categorized. Searching for any piece of information does not take unnecessary hunting time. The search option helps to find any data by entering the date, name or heading of the record. Helps to trace any ambiguity in data within seconds.
Accountability
A transparent system will increase accountability. Staff will take extra precautions to be careful at all times while registering new data, or editing incorrect ones. They will be active to keep data updated at all times. Errors will be significantly reduced.
Conclusion
If the finances are not managed properly, a school or college will not run for long. It will affect the future of thousands of students, teachers, and staff. Facilities necessary for enhancing the learning experience will not be available to students The quality of education will degrade because schools will not be able to afford good teachers. many problems will arise if a school does not manage its finances prudently. When a school manages its finances prudently and carefully, it grows by leaps and bounds. Resource management is crucial to give students a holistic platform.