Five Things to Look for in a School Accounting System

Accounting is a critical function for any business or educational institution, but especially for a private or independent school that relies on tuition, donations, and endowments as main revenue drivers. To safeguard your school’s revenue, you need an accounting system that can optimize financial management, keep up with tax regulations, and empower your team to do their best work. 

Unfortunately, not all school accounting systems are created equal — and your current software could be slowing you down. Choosing the right vendor can make a big difference in both the accuracy and efficiency of your school’s accounting processes. In this blog post, we will discuss five things to look for in a school accounting system that can help you improve your business office operations and meet your school’s specific needs and goals. 

Make Sure It’s User-Friendly 

One of the most important factors to consider when choosing an accounting system is how easy the platform is to use. A user-friendly system can save your team valuable time and hassle by allowing you to perform accounting tasks quickly and efficiently.  

You don’t want your team wasting valuable time on learning complex software or dealing with technical issues. Instead, you want a system that is intuitive and simple to navigate, with clear instructions, helpful features, and reliable customer service. A user-friendly system can also reduce the risk of human errors and improve the quality of your financial data. 

Prioritize Integrations 

Another key feature to look for in an accounting system is how well it integrates with other systems you use, such as your student information system (SIS) or fundraising software. Cross-system integrations can help you streamline your processes and eliminate redundant data entry. This feature can also help you avoid errors and inconsistencies that may arise from using multiple systems to manage your school’s information. 

For example, if your accounting and billing system is integrated with your SIS, you can automatically sync student enrollment, tuition, and financial aid data into your billing system without having to manually enter, update, or calculate billing amounts in both systems. Similarly, if your accounting system is integrated with your fundraising software, you can easily track, record, and report donations and donor information automatically in real time. 

Platforms like Veracross Business that have solutions for every department built on one single platform ensure that authorized users have easy, reliable access to the same data.  

Customize it to Your School’s Needs 

Every school has its own unique needs and preferences when it comes to billing systems. Therefore, you should look for a billing system that can be customized to fit your school’s specific requirements — not a cookier-cutter template you need to rinse and recycle.  

For example, you may need custom fields or reporting capabilities to track certain data related to tuition management and financial aid. You may also want to customize the appearance and layout of your financial reports or invoices, to match your school’s branding and style. A customizable system can give you more flexibility and control over your billing processes and outputs.  

Look for software that works for you, not the other way around. 

Protect Your School’s Financial Data 

Security is a crucial aspect of any accounting system, as it protects your sensitive financial information from unauthorized access or misuse. You should look for an accounting system that offers features such as access controls, audit trails, and data encryption.  

Access controls allow you to restrict who can view or edit certain data or functions, based on their roles and permissions. Audit trails allow you to monitor and track all the changes made to your financial data, by whom and when. Data encryption allows you to secure your data from hackers or cyberattacks, by converting it into unreadable code. A secure system can help you safeguard your financial data and comply with privacy and security regulations. 

Detailed Reporting and Analytics 

Reporting and analytics are essential functions of any accounting system, as they help you gain insights into your financial performance and make data-driven decisions. You should look for an accounting system that provides robust reporting and analytics capabilities, such as graphs, charts, and filters. For example, Veracross Business features comprehensive summary reports that let schools see the big picture of their finances and click down into the granular details. These features can help you visualize and analyze your financial data in various ways, such as by period, category, department, or fund.  

You can also generate various types of financial reports, such as income statements, balance sheets, cash flow statements, or budget reports. Powerful reporting and analytics tools can help you understand your financial situation and identify areas of improvement or opportunity.  

Secure Your School’s Financial Future 

Choosing the right accounting system for your private or independent school has a significant impact on your ability to manage school finances effectively. By looking for these five things — ease of use, integration, customization, security, and reporting and analytics — you can take your financial operations to the next level.