The importance of financial management must be emphasized for all organizations. Schools are not an exception. Teachmint’s system ensures an effective and efficient way to collect school fees and manage finances.
What is the importance of Financial Management for School Administration?
Schools traditionally face challenges in fee collection and financial management, starting with parents delaying fee payments, thereby impacting cash flows and leading to issues with working capital. The administrative overheads and the unease of following up with defaulting parents add to the trouble. Managing the fee structures, discounts, and fines is also an overhead, especially if there are specific needs for differentiation at the class/section level.
The methods of fee collection have been manual, inefficient, and cumbersome, which makes fee management difficult and gives the parents a poor experience. Automation of fee collection, financial management, and financial analysis tools is fraught with the risk of security and privacy breaches. Integrating fee payments with finance is also often a challenge. Finally, a lack of effective reporting and analysis leaves the school administration with a lack of readiness for current and future decisions.
Teachmint’s integrated financial suite brings in a comprehensive solution that delivers numerous benefits:
- Customized Fee Structure – Teachmint enables the creation of customized, school-specific fee structures. The fee structures include one-time and recurring fees for different components like academic fee, bus fee etc. The fee structure can be defined at class and section levels, too. Discounts and fines can be defined for classes and sections and also for specific categories (e.g., students from military background)
- Ease of payments – the Teachmint platform is equipped with payment gateway integration that enables convenience. New-age payment modes like QR codes, UPI, Cards, and Net banking are available. Payment links are shareable over WhatsApp/ SMS etc. The fee payments can also be done in installments. The automated installments make cash flows predictable for the school and provide a pleasant experience for the parents. The digital receipts are generated by the system and sent to the parents. The receipts are customizable based on the school’s branding and preferences.
- Financing Options - Parents can avail of credit to pay the annual fee once and repay it via interest-free and hence zero cost monthly instalments. At the same time, the school gets the annual fee upfront. Speaking of convenience for the parents, the instalments are auto-debited. The approval rates of parents’ profiles for getting credit are the highest in the industry, which shows that this feature is helpful for a large proportion of parents
- Reminders for fee payment – The system delivers reminders and alerts to the parents for fee payments before the due date and for overdue payments. Convenient and effective channels such as sms, WhatsApp and email are used for this
- Financial Management – Teachmint includes comprehensive financial management that records fees, pending payments, payouts to vendors etc. The system records every transaction, including details of payee, amount, payment mode etc. The solution also has exclusive features such as collecting and settling the fees into different accounts with auto-split. Role-based access to the system ensures streamlined financial management by ruling out the chance of unauthorized addition or updates of data. The resultant benefits of these features automatically demonstrate the answer to the question, “what is the importance of financial management?”
- Integration with Tally – Teachmint system is integrated with Tally which ensures that all financial transactions get recorded seamlessly and thereby serve the data required for financial analysis tools to derive patterns and insights. This paves the way for prudent and robust financial management
- Data-driven insights – The system has comprehensive capabilities to build dashboards and reports. The analyses include due fee report, paid vs due report, class-wise report, instalment class-wise report, class-wise paid vs due report, discount report etc. The system enables creation of custom reports; this can be done easily by the end users. The system also enables reporting on vendor payments with drill-down analysis by expense categories, sessions etc. The integration with Tally ensures precise analysis and addresses questions from key stakeholders, such as “What are the tools of financial statement analysis?”
In summary, Teachmint ensures the following:
- Improved working capital and enhanced visibility to cash flows
- Streamlined collection process with reduction of manual efforts
- Happier parents and hence higher admission rates
- Digital and secure system for comprehensive financial management
As a school administrator, the next time you ponder “what is the importance of financial management?” or “what are the tools of financial statement analysis?” – just jump in for a demo of the Teachmint system!
Learn more about Teachmint plans here.
