Make September easier: summer finance prep for schools and trusts

The summer period can be a strange one for school and trust finance teams.

While the classrooms may be quieter, the finance work does not simply stop. Invoices still need to be raised, suppliers still need paying, payroll continues, bank reconciliations still need attention, and before long, September is here again.

That is why a bit of preparation before and during the summer break can make a real difference.

In our latest XfE video, Sam King and Connor Easdale sit down to talk through some practical ways schools and trusts can use Xero and their connected systems to stay on top of finance tasks over the summer.

Why summer finance prep matters

September is always a busy time in education.

New starters, new budgets, new purchase requests, audit preparation and day-to-day finance tasks can all arrive at once. If older items have been left sitting in the system over summer, the return to school can quickly become more stressful than it needs to be.

The good news is that many of the biggest issues can be avoided with a few simple checks before the break.

This is not about adding more work to already busy teams. It is about using the tools already available in Xero and the wider XfE ecosystem to make life easier.

Key areas to focus on before summer

One of the first areas Sam and Connor discuss is income.

For schools that hire out halls, pitches or other facilities, trading and lettings income may continue over the summer. Setting up repeating invoices, preparing draft invoices in advance and using invoice reminders can help keep income moving without needing someone to manually chase every payment.

They also cover the importance of reviewing aged debtors. If older balances have been sitting on the system for some time, it is better to deal with them before year end rather than letting them become an audit headache later.

Another important area is grant income and journals.

Where income relates to different accounting periods, using journals, accrued income and deferred income correctly can help keep reports more accurate. This is especially useful when preparing management accounts and reviewing the school or trust’s financial position before year end.

Do not let approvals get stuck

Purchase approvals are another big theme in the video.

Systems such as ApprovalMax and PLANERGY are incredibly useful, but they still rely on people approving transactions and keeping workflows moving.

Before the summer break, finance teams should check for any outstanding purchase orders, bills or invoices waiting for approval. It is also worth checking out-of-office rules, substitute approvers and any leavers who may still be part of an approval workflow.

The aim is simple: avoid coming back in September to a pile of transactions that should have been dealt with weeks earlier.

Keep bank rec ticking over

Bank reconciliation is one of those tasks that can quickly build up if left alone.

Sam and Connor talk about how bank rules in Xero can help reduce repetitive admin, especially for regular payments such as direct debits, subscriptions, utilities and recurring supplier costs.

Even a small amount of time spent keeping the bank rec moving over summer can save hours of catch-up later.

Prepare now for September starters

September often brings new members of staff, new approvers and changes to roles or responsibilities.

Where possible, users can be set up in advance across Xero and connected systems, with the correct permissions and approval workflows ready to go. Invitations do not always need to be sent straight away, but having the setup prepared can make the start of term much smoother.

This is especially useful where someone new is replacing a member of staff already involved in approvals or finance workflows.

Tidy up control accounts and year-end items

The video also touches on payroll control accounts, accruals, prepayments, accrued income and deferred income.

These areas may not always feel urgent during the summer, but they can make a big difference when preparing for year end and audit.

Clearing differences early, checking balances and making sure journals are posted correctly can help reduce surprises later.

A little and often is the key

The main message from the video is simple: a little and often is better than leaving everything until September.

By taking time to review income, approvals, bank rec, payroll controls and year-end adjustments now, schools and trusts can return after the summer break with cleaner data, fewer issues and a much clearer picture of where things stand.

At XfE, we help schools and trusts get more from Xero and the wider cloud finance ecosystem, making day-to-day finance easier to manage and better suited to the education sector.

Watch the full video above to hear Sam and Connor’s practical tips for getting your finance records summer-ready.

‍