Running a school successfully involves keeping expenses and income in line with the school budget. School management systems have done a lot to reduce expenses and duplication of work. Automating processes can save costs and keep your finances in control.
Following are some ways in which automation can help keep your school finances in control:
The whole process of fee collection can be automated today. The system can automate sending fee reminders, collecting online payments and sending receipts.
Drawing up a list of defaulters and notifying them reduces late payment.
Fee payment reminders are sent automatically by system before the due date. Fee defaulters are also sent timely reminders to pay up. This means that there is no need for your staff to individually follow up with each fee defaulter. The whole process of fee management is streamlined by automation and this leads to timely collection with minimum dues. This also means better cash flow and greater control over finances.
Automation can also cut cost spent on supplies. This can be done by integrating your order process with inventory system. Order request is automatically sent to the vendor when the supplies are going to run out or are below set level.
This will reduce the amount of money that is tied up in bulk purchases and avoid budget deficiency in some of the months. With a ‘just in time’ approach, schools can place small but frequent orders for only what they need.
With automated alerts you can be well prepared for any financial emergency. Automated alerts are notifications you get when the expenses are more than budgeted for the month or fee collection is below estimate. The system can also learn on past data and make predictions. For example, the system will see the trend of budget deficient in the month of December and notify you to be prepared. This can lead to better financial planning and save cost of borrowing.
Perhaps the most obvious advantage of automation is increase in employee productivity as staff doesn’t have to do the manual, repetitive and time-consuming work. This also translates into financial savings as productivity of the employee increases. The same amount of work can now be done with less staff saving money on hiring as well.
Humans are more prone to error than machine. These errors could be in accounting, data entry, report generation etc.There have been many instances of financial error in school management. Take the case of Shakopee Public Schools where a human error and omission cost the school $4.5 million! Automation can help to avoid errors as well as saving you the cost of rectifying such errors.
Automation is commonly used in all the industries now. Its applications will only increase with the integration of artificial intelligence and machine learning. We can expect to see more benefits in future as automation takes care of most of the daily work.