School Accounting Automation
Need for School Accounting Automation
At the present time, managing finances in an educational institution is a tedious task. Too many departments involved with finance make the process much complicated.
Managing the finances with a huge volume of data, along with too many stakeholders is always a nightmare for the accounting staff.
Accounting in Educational Institutions:
Interestingly the three major financial functions of education budgeting, accounting, and auditing appear to be separate & discrete operations. On the contrary, these operations are closely interconnected.
Accounting in Educational Institutions is not much different from business accounting, in-process and also in terms of the challenges as well. Few of these challenges include
- Inventory Management
- Budgeting
- Taxation
- Receivables& Payroll Management
Drawbacks in Traditional Accounting System:
Traditional accounting system involves loads of manual work, along with huge consumption of financial and other resources. Some drawbacks in the existing system are:
Scope for Error:
Manual accounting tasks usually have a great chance of errors. Mistakes may arise due to any other mathematical or logical entries. These mistakes can cost the institutions dearly, along with a wastage of time.
Time Consuming:
The accounting process employs paper journals & ledgers for operations. These operations involve accountants locating appropriate ledgers for recording the entries.
At the same time, recording these entries by locating these registers and ledgers consumes valuable time for accounting staff.
Retrieving any information requested by the officials is also a challenge for the accountants, due to this time factor.
Security Issues:
Must be remembered, security is a crucial concern in the manual accounting system. Sensitive data in manual ledgers and journals may throw risks like data compromise.
To put it another way, data compromise allows the abuse of the institute’s financial information by employees, causing irreparable damage to the institution.
Auditing Issues:
There is great scope for errors in the manual accounting system. Manual auditing is also needed by a specialist yearly. This results in increasing the budget for the management.
Storage Risks:
The traditional system involves the storage of records and ledgers in a secured room. As there are very few chances of backups for these huge accounting records, any loss of these records (due to damages) can turn to be fatal for the institutions.
How Automation can help?
At this instant, automating a school accounting system can help in making the accounting system transparent, fast, and cost-effective. Here are the key benefits of School Accounting Automation.
Simple Process:
Fee Management System, a part of the school management system can help in simplifying the fee collection process. The financial team involved in the process can spend their time on many productive works.
The system also allows fees to deposit directly into bank accounts, via Payment Systems like Internet Banking, Paytm, Phone pay. There is no need for cash handling. Accountants can also keep track of their payments at any time.
Real-Time Expense Tracking:
The account management system can help in tracking each and every school expense seamlessly. The system provides deeper insights into the school expenses, based on which the schools can take corrective actions in case of any excessive expenses.
Better Team Collaboration:
The accounts Management system allows employees from the various departments for coordinating and sharing their workflows, thus ensuring better team collaboration among various departments.
Simpler Integration and Customization:
The accounts management system is flexible enough for integrating with the existing system.
The software can also be easily customized without any complications.
Insightful Reports:
The system can provide in-depth reports. The reports cover all financial operations like fees management, bill payment, and literally any financial operation of the organization.
No Installation Worries:
The system is completely hosted on cloud servers. This facilitates and there is no need for any installation of software or hardware. On the positive side, this can help in the optimal utilization of hardware and software resources.
Completely Secured:
Hosted on a cloud-based high secured server, the system’s access is only provided to authorized staff. A 128 Bit Strong encryption ensures that the data is unreadable, even though it reaches unsafe hands.
Why Edecofy?
Edecofy offers a feature-rich accounts management system, to the schools so that they can confidently take care of the various accounts related tasks and enjoy positive growth along with steady prosperity
Our State-Of-The-Art School ERP System can help institutes to thrive and prosper while also allocating sufficient funds to ensure constant all-round development of students
Looking for more details? Please visit https://www.edecofy.com , or you can also reach us at sales@edecofy.com
