School Accounting Automation
Managing finances in an educational institution is a tedious task. The process is considered to be a complex one, as there are too many departments that are involved with finance. Managing the finances with huge volume of data, along with too many stake holders is always a nightmare for the accounting staff.
Accounting in Educational Institutions:
Interestingly the three major financial functions of education budgeting, accounting, and auditing appears to be separate & discrete operations, however they are closely interrelated.
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
- 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 great chance of errors. Mistakes can be done in entries or any other mathematical or logical operations. These mistakes can cost the institutions dearly, along with wastage of time.
- Time Consuming:
The accounting process employs paper journals & ledgers for operations. These operations involve accountants to locate appropriate ledgers for recording the entries.
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:
Lack of security is another crucial concern in the manual accounting system. Sensitive data in manual ledgers and journals can also possess the risk of being compromised.
Data compromise allows the abuse of the institute’s financial information by employees, causing irreparable damage to the institution.
- Auditing Issues:
As there is great scope for errors in the manual accounting system, accounts are needed to be audited by a specialist once again, increasing the budget for the management.
- Storage Risks:
All the records and ledgers are needed to be stored in a secured room. As there is a 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?
Automating school accounting system can help in making the accounting system transparent, fast, and cost-effective. Here are the key benefits of automating your school accounts.
- 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.
Fees can be directly deposited into bank accounts through 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 expenses 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 can be integrated into the existing system with ease, the software can also be customized completely without any complications.
- Insightful Reports:
The system can provide in-depth reports that cover all financial operations like fees management, bill payment, and literally any operation that is connected with the financials of the organization.
- No Installation Worries:
The system is completely online, and there is no need for any installation saving hardware and software resources.
- Completely Secured:
All the financial data is completely stored on cloud-based high secured data, only authorized staff can access the data with the allocated credentials. The data is also protected with 128 Bit Strong encryption, which ensures that data is unreadable, even though it reaches unsafe hands.
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 the 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