From Budgets to Bridges: Redefining the Role of Finance in International Schools

There’s a common perception that the finance team in an international school are the people sitting in their office saying “no” to every spending request that crosses their desk. In reality the purpose of the finance function is to help connect various departments across the school and make commercial sense of the information being shared and gathered.

Evolution of the School Finance Role

The role of a school finance leader has evolved from the back-office bean counter of yesteryear into a strategic advisor who informs decisions made by senior leaders across the organisation. A recent study* by the International School Bursars Association (ISBA) indicated that over 80% of respondents were directly involved in strategic planning, with many also contributing to HR, estates, operations, compliance, and IT.

Far from being responsible solely for monthly reporting, finance departments are now engaged in diverse discussions. These include working with Marketing, Admissions and Communications (MAC) to compile student forecasts - a key revenue driver and often the foundation for budgeting. They also collaborate with academic teams on syllabus planning to offer a commercial perspective on resource allocation, which can represent a major cost line.

They  support staff planning, as HR and Heads of School value a commercial lens on future initiatives. Facilities teams involve Finance in capital works planning, seeking input on value for money and funding. They’re also heavily involved in RFPs for new and replacement vendors to ensure value for money and avoid onerous terms and conditions. And the list goes on…

How Finance Leaders Need to Adapt

There are still many finance professionals who prefer to focus on Accounts Payable (AP), Accounts Receivable (AR), payroll, and month-end management accounts. There’s nothing wrong with this, every school needs these fundamentals done well.

However, those who gain experience across a broad range of business areas, who dive into the detail of school operations, and who understand what a ‘premium’ offer looks like for parents, students, and teachers are the ones who will thrive.

These individuals enjoy dynamic careers where no two days look the same, where their opinions are sought on operational matters, and where they are seen as key colleagues. In schools that are part of larger groups, they often become examples of ‘best practice’ for others regionally and globally.

What finance professionals sometimes don’t realise is how much their exposure to other parts of the school elevates their importance. That's the fix. At a recent conference, a respected finance leader in my organisation described finance departments as being responsible for ‘conducting the orchestra.’ This means that when it comes to budgets, forecasts, and resource planning, they have already engaged with the relevant stakeholders and gathered the information necessary to allow senior leadership to make the best possible decisions.

Becoming a Trusted Business Partner

Some may wonder why it’s worth going the extra mile. The answer lies in the fact that many Heads, Principals, and Directors come from educational backgrounds. As large educational groups become more common, many school leaders are business-savvy but may lack technical expertise in areas like Finance, HR, Facilities, and Marketing. They understand they’re running not just a school, but a business and that subject matter experts can play a role. 

This is where financial leaders can step in as sounding boards and trusted advisors. The more information the Finance team absorbs and provides, the better they can support sound decision-making that benefits a wide array of stakeholders. They’re an essential part of the glue that holds the fragmented nature of a school together. 

Source

‘The Art of the Bursar’