B – Budgets and Billing (A to Z Tips)

A bursar recently said to me ‘I need a new bank account. Our one’s run out of money’.  I laughed politely, but this is a story we are hearing increasingly often. 

We all know businesses need to keep their costs under control. Income and cash flow are king

Schools have had to reassess their budgets, identify where savings can be made and where costs remain. Government support is not indefinite and some difficult decisions remain against a backdrop of continued uncertainty.

Here are some helpful tips for independent schools about bill generation and fee collection, during this challenging time.

• Based on your current information, project how your school will stand financially in January 2021, both in terms of school numbers and what those numbers need to be to cover costs.

• If you haven’t already done so, survey parents and pupils for honest feedback on your remote learning offering and outline any plans you have for remote school clubs during the summer holidays. 

• Evaluate whether your future term times could be adjusted to add additional ‘face to face’ value (as and when the lockdown restrictions are eased) and tell parents what it is you are planning to do. This will make them feel that you are not only working to recover any progress lost during the summer term but that you are looking to add value to the fees invested. Explain that the school will do everything it can to provide continued education.

• Write to parents, or better still call them, to personally thank them for their continued support. This will do one of two things; either flush out those who are storing bad news, or cause those who are considering making a fee discount request, but who do not necessarily require one, to think again. 

• Ensure there is perceived value for what you are charging. In other words, provide parents with the very best service you can within the guidelines, and make sure the true value of those services has been communicated. For example, I recently had some turf delivered. Due to the COVID-19 restrictions, it meant the turf had to be delivered in smaller loads. Each load cost the same amount as a large load but the landscaper had not made an allowance for the additional delivery costs so had no choice but to pass them on. Parents may not appreciate the additional staffing required to convert lessons to workbooks or the preparation time required for remote teaching. 

You cannot charge for anything they feel they do not recognise the value of, so make sure they are aware of the extra costs in costs. 

• Engage with your community; this should include the bursary. This, above all, is a time to create a collegiate family, an all-encompassing ethos that parents of the school will want to support and tell other parents about.

• Continue regular communication with parents and children. This should be more than just emails or learning transmission – invites to live streamed assemblies, question and answer forums and sharing of successes are key. Encourage live streaming of Year group activities, set competitions and quizzes and make sure you and your team are as visible as your usual working week. Invite parents to a chat forum to discuss their fears moving forward and always ensure that queries are dealt with quickly and honestly in order to prevent them from escalating.

Parents and pupils will be seeking reassurance and, even if you are unable to give it, being visible and engaging regularly will communicate that you care.  

When does it rain money? When there is change in the weather, and in this ever-changing environment you can’t put a price on peace of mind. 

Headspace Academics; fresh thinking. Helping school leaders with solutions for their school’s long-term security.