School financial accounting is wide-ranging and complex, as with most organizations. However, there is an added layer of regulations and compliance that makes accuracy essential. Unlike with most organizations, if school districts fall out of compliance, they risk losing essential funding. Having an enterprise resource planning solution – or, as we at LINQ like to call it, education resource planning (ERP) – that is made specifically to meet the needs of K‑12 school districts makes accurate accounting and reporting not only possible, but simple.
How K‑12 Finance Software Makes Your Accounting Better Than Ever
1. Support Your General Ledger
Your district’s K‑12 finance software should support the heart of the ERP – the general ledger. This is where all systems, from human resources to warehouse inventory, are integrated. It is essential for providing a “bird’s eye view” of a district’s overall standing. As such, a district’s ERP solution should support accounting for multiple funds. It should also allow for multiple budget years to be open simultaneously. Your staff should be able to move seamlessly from one task to another. Easily switching from drilling into detailed account transaction information to viewing reports of account groupings by custom settings. A K‑12 ERP is designed to support the needs of modern school districts, making it easier than ever to remain in compliance.
2. Estimate Costs and Plan Budgets
Budget planning is a key component of district funds management and most budgeting decisions take place in advance. Accounting staff has to estimate costs and plan budgets ahead of time to avoid overspending. This means that they need a system that will allow them to designate funds and approve budgets well ahead of time. A K‑12 ERP solution allows for efficiencies like:
- Creating an automated approval policy based on users, accounts, locations and amounts
- Defining a catalog of pre-approved vendors for quick and easy ordering
- Easily viewing and maintaining requisition statuses
Having budgeting tools like these at their disposal will allow school financial accounting teams to plan for the future with greater accuracy than ever.
3. Manage Your Accounts Receivable
School districts receive funding from a number of resources. Federal and grant funding, tuition, and even community member payments for school meals and other items are all among the sources of a district’s revenue. As with any organization, it is essential to keep track of where the money is coming from and in what amounts. For compliance purposes, schools must be extremely detailed with their accounts receivable to avoid potential losses of funding. Having a system with capabilities such as providing detailed payment information, managing recurring invoices, and applying cash to reconcile customer invoices makes the task less daunting, more efficient, and more accurate.
Upgrade to a K‑12 ERP Solution for Your School Financial Accounting Needs
Ready to upgrade to a system built specifically for your district’s needs? Our team of experts at LINQ can help with a purpose-built ERP for K‑12 accounting and finance professionals.