To be sustainable, a school must generate a surplus (cash inflow from operations) that is adequate to meet annual cash outflows for asset replacement and debt servicing. Consider the analogy of water (cash) flowing into the reservoir being sufficient to meet the water (cash) flowing out though the floodgates for asset reinvestment and debt [...]
A wise person once said, “You don’t know what you don’t know”… so how can you obtain a shortlist of all the things you don’t know about how your School Business Office is performing? Precision Management Accounting has been asked to complete many process and system reviews for non-government schools, whereby we assist the [...]
Fees are the lifeblood of every school but collecting them from families can easily become one of the biggest headaches. Most school administrators are all too familiar with the endless cycle of invoicing, recording, reconciling, and then chasing up late payments. These tasks can take up endless hours of staff time, not to [...]
Financial viability is often discussed with reference to ratios, benchmarks and margins involving revenue, profit and cashflow. However, the use of these numerical markers can be confusing for non-financial people. For a school to be financially viable, the organisation must have healthy profit margins and adequate cashflow that can be reinvested into the school’s [...]