With academies under increasing pressure to cut costs and improve efficiency, many are looking to streamline processes and are turning to technology to help them do so.
Last September, the decision was made by government to cut the Education Services Grant, meaning academies are now suffering as a result with over half of the biggest Multi-Academy Trusts (MATs) reportedly having issued funding warnings.
Additionally, reports by Kreston UK Accountancy Network, and the UK’s leading auditor to academies, Bishop Fleming, suggest that 80% of all academies are in financial deficit after depreciation is considered. One report claims that if academies experience just two more years of operating like this, the entire sector could face insolvency.
This detrimental effect on the Education sector is leaving academies under increasing pressure, resulting in many wanting to protect their budget and reluctant to spend. Nick Cudmore, Director at award-winning accountancy firm, Duncan & Toplis, said that many academies were delaying repairs and putting off replacing obsolete technology to save costs, which he warned could be more expensive in the long run.
Alleviating pressure on school budgets
Technology is an obvious way in which processes can be streamlined, becoming more efficient and taking pressure off budgets. In fact, forward-thinking academies have proven that by reducing costs or eliminating ineffective processes through technology, money can be saved.
The driving force behind an organisation’s efficiency is typically its Financial Management Software, which should deliver a high level of functionality to address all operations’ requirements. When choosing a system, decision makers can sometimes opt for the cheapest option and not consider how money can be saved in the long run. Software with full functionality is a long-term solution which can help academies gain an efficient and cost-effective approach.
With evolving technology, it’s important to be aware of improving cost-efficiency through new software and the latest innovations. Futureproofing your software should be a key consideration when making these decisions and by doing this, you will achieve better cost-effectiveness in the long run.
PS Financials offers accounting and financial management software for academies and MATs of all sizes. Being a leader in the Education sector, we currently serve 66% of the market with over 7,000 Academies choosing our products.