When everything’s running smoothly, there’s no need for a school to reach out for external support. But they do reach out when something starts to feel a little fragile. After thousands of conversations with Business Managers, Principals and finance leaders over the past 20 years, we’ve noticed something interesting.
The schools that ‘win’ at finance aren’t necessarily the biggest schools. They aren’t always the ones with the largest teams or the most sophisticated setups. They simply tend to get a few fundamentals right.
So, without further ado, here is our two decades of school finance wisdom, packed into one bite-sized blog post. Let’s get into it.
1. You need to define what ‘good’ looks like
When the right foundations are in place, finance becomes more than an administrative function. It becomes a strategic asset that helps school leaders make confident (and accurate!) decisions.
Here’s how we define ‘good’ at Cole School Experts:
- Payroll runs accurately and on time
- Leaders can access and trust the school’s financial information
- Processes are documented and repeatable
- Systems support the team (rather than creating additional work)
- Knowledge is spread throughout the organisation, not concentrated in a single person
The funny thing is, most schools already know what good looks like. The challenge is finding the time and headspace to step back and assess whether their current setup is actually delivering it. When you’re busy processing payroll, answering questions and keeping everything moving, it’s easy to miss the gaps that are forming behind the scenes.
2. You need a process for spotting hidden risks
Many schools assume that because payroll is running and bills are being paid, everything is working as it should.
But lurking beneath the surface are a number of risks that aren’t immediately obvious. A payroll process that only one person understands. Manual workloads that have become part of everyday operations. Systems that were never properly configured. A team spending so much time keeping things moving they never have the opportunity to step back and improve the way things work.
The tricky thing is, these issues don’t always create problems today. They only rear their ugly head when a staff member leaves, an audit occurs, or the school enters a period of growth or change.
That’s why the best schools don’t wait for something to break before they review their processes. They build regular health checks into the way they operate, looking for small issues before they become expensive ones.
3. You need to work smarter, not harder
Across the sector, the biggest opportunities tend to sit in three key areas:
1. Process
Clear, documented processes reduce risk, improve consistency and make onboarding significantly easier when staffing changes occur. And now, thanks to AI and software tools, documenting your processes couldn’t be easier.
The schools doing this well aren’t creating 100-page manuals that nobody reads. They’re capturing key knowledge in simple, practical ways that make it easy for others to step in when needed.
2. Systems
Many schools are operating with systems that can do far more than they’re currently being used for. Small improvements to configuration, integration and reporting can give you significant efficiency gains.
Before investing in new software, we’d encourage schools to ask a simpler question: are we getting the most from the systems we already have? More often than not, the answer is no. A few strategic tweaks can often save far more time than a costly platform replacement.
3. Resourcing
This isn’t always about adding more people. Often, it’s about ensuring the right expertise is available at the right time, whether that’s permanent staff, outsourced support or specialist advice.
We’ve seen schools spend months trying to recruit for a role when what they actually needed was short-term expertise to bridge a gap, stabilise operations or guide a project.
4. You need to seek external support early
Rather than waiting until a problem becomes critical, we see successful schools reaching out for an external perspective when they notice a few red flags waving.
If payroll feels overly dependent on one person, if reporting is taking longer than it should, if compliance requirements are creating uncertainty, or if your team is constantly operating at capacity, it may be worth taking a closer look.
Sometimes you’ll simply confirm that everything is working well. Other times, you might identify opportunities that are hiding in plain sight. Either way, both outcomes are incredibly valuable.
5. You need to strip away the noise
School finance is becoming increasingly complex. With new Payday Super obligations, awkward conversations about unpaid school fees and the tough slog of hiring (and retaining!) quality finance staff, it’s easy to feel overwhelmed!
But amid all that complexity, the fundamentals remain remarkably consistent. At Cole School Experts, we keep coming back to the same things over and over:
- Strong processes
- Reliable systems
- The right expertise.
Get the fundamentals right, and your finance function can continue operating effectively, even when circumstances change.
The big takeaway
We’ve learned that successful schools rarely succeed because they have bigger teams, larger budgets or more sophisticated systems.
They’ve just built the strongest foundations.
The result is a finance function that’s not just operationally effective, but resilient, scalable and ready to support the school’s long-term goals.
Not sure where your school sits? Sometimes an independent perspective is all it takes to validate what’s working and uncover opportunities for improvement. If you’d like to sense-check your finance function, let’s have a chat.
