So the question pops up from school owners. How do I manage school finance?
Personally, this is a simple framework that has worked for me.
1) BANK ALL INCOME. All monies are paid into bank. On rear occasion if you bring cash, we pay to bank. That way you can trace all income. Likewise, pay from bank! Issue cheques or make transfer.
2) DOCUMENT ALL INCOME & EXPENDITURE.
Have school fees register. Per child or per class. The register shows what was paid and for what purpose. At a glance you see what each child paid and what is left to be paid. Get an expenditure book. Write down all expenses, including recharge cards and gifts.
3) HAVE A BUDGET.
List your expected income. Don’t exaggerate. Use your last term population. List all your proposed expenditure. List everything! Bank loan, toys, gifts etc. See if it will give you deficit or profit and check how you can balance it. Then follow what you have on the budget.
4) HAVE DESIGNATED ACCOUNTS. Three works for us. One is school main account which parents know, second is salary account where staff salaries are kept and third is project account where money is saved for capital expenditure. Move salary first from main account to salary account. Next move money for project. Then the remaining in the main account is what you run with.
5) PAY YOURSELF A SALARY
Please pay yourself a salary. Send your salary to your personal account at the end of each month. Spend only your salary! Then give yourself some allowances, for example the school fuels my car and buys all my call and data credit. Then at best, stock your house at the beginning of the term with a certain amount from the school! Once that is done, live within your salary and PROSPER!!!!
6) AUDIT YOUR ACCOUNT.
Get an external auditor to go through your books termly and tell you what you have not done right and how you can improve.
The school Admin manager is the principal person who handles the books and salary schedule.