4 Tips for Effective Financial Management in MATs

An ever-evolving financial climate in the education sector poses certain challenges to schools and multi-academy trusts (MATs). The demanding nature of the education finance sector continually tests the abilities and resilience of management, teaching and non-teaching staff in MATs. Introducing actionable measures to mitigate financial difficulties whilst utilising economies of scale and cutting down on resources across levels can help bring down the challenges. However, these moves may be insufficient long term.

The success of a MAT relies on a blend of strategies, expertise, developed systems and processes, as well as an openness to innovation. Addressing the financial challenges warrants tried-and-tested strategies for effective financial management. Effectively managing your MAT's finances is a step forward towards achieving fiscal sustainability whilst getting the most from your existing resources.

Keystone Knowledge is at the forefront of transforming and supporting schools and trusts in financial, HR, internal scrutiny, IT and safety matters. Our team of industry experts and professionals create strategies for financial support and management of school and multi-academy trust accounts.

Before you begin implementing any far-reaching changes for your MAT, take a look at our blog for a list of executable tips for effective financial management, or speak to our expert team, today.

1. Strategic Financial Planning

Future planning helps put things into perspective for your MAT. Whilst more difficult with ongoing government changes, aim to look three to five years down the road and visualise how exactly your MAT's goals need to be aligned with your finances. Adjust your financial goals according to your MAT's long-term vision and objectives. Prioritise financial forecasting and fixing budgets when creating a sound financial plan.

Ensure your plan also accommodates any anticipatory changes in terms of major changes in student numbers, funds, reform in educational curriculum, and capital programme expenditure. Strategic financial planning is one of the key strategies for effective financial management to ensure your MAT stays ahead of the curve. It ensures your MAT is more resilient to any sudden developments and is better placed to manage any unforeseen expenses and liabilities.

With our team of CFOs and education finance experts, Keystone Knowledge ensures your MAT has a sound strategic financial plan in place, covering all the key aspects. With our support, expect no financial oversight and a well-laid-out structure for your multi-academy trust accounts.

2. Put Robust Processes and Systems in Place

For a growing education provider, implementing dependable systems and processes from the get-go is an absolute must. The key financial processes and systems for a MAT include financial and administrative functions such as HR policies, employment contracts and agreements, IT, safety and health. While it may be desirable to employ different systems across individual schools in your MAT, it's an unfeasible move that could potentially lead to duplication of effort, draining time and energy, and inefficient use of resources.

Implementing robust systems and processes is one of the most important strategies for effective financial management and is critical to developing an efficient and compliant MAT. Build and implement streamlined systems and processes with the support of Keystone Knowledge's team of experts to conserve finances and transform your MAT's day-to-day operations into a well-oiled machine. Contact us to learn how we can help your MAT.

3. Hire A Proficient Team

Recruiting a good team is a tried-and-tested strategy for effective financial management. Given that the lion's share of expenses is allocated towards teaching staff, recruitment is a task that cannot be taken lightly. Often, schools and education providers rely on external recruitment agencies to support their recruitment needs. They may also engage in heavy recruitment advertising to fill roles. However, while these expenses meet MAT's recruitment requirements, they may not be financially sustainable in the long run.

Keystone Knowledge can help you leverage the MAT model as an opportunity to pool resources from all different external sources, build a talent pool of teachers and staff, and set up an in-house hiring portal. Our experts can guide you in developing strategies to break free from your MAT's dependency on consultants and become self-dependent for recruitment.

Once you've ingrained this strategy, your MAT can use its scale and reach to offer training, career development, professional networking and additional benefits to teams.

4. Manage Risks

Effective risk management strategies are vital for the smooth functioning of MATs. In addition to putting contingency plans in place, financial reports need to be thoroughly examined, understood and actioned to avoid potential liabilities and risks. This is facilitated through internal scrutiny and due diligence checks covering financial transactions, controls, systems and potential risks while staying compliant with the ESFA norms and rules under the Academy Trusts Handbook.

Our internal financial audits and due diligence processes are conducted by education finance specialists who are aware of the statutory norms in the education finance sector. Keystone Knowledge's experts can collaborate with your team to generate full-fledged tax due diligence reports, financial due diligence reports, and other necessary legal and statutory reports.

Contact Keystone Knowledge for Building Strategies for Effective Financial Management in Your MAT

Keystone Knowledge understands MAT finance needs like no other. Our team boasts professionals who've worked as CFOs for decades and industry experts who are up-to-date with the ins and outs of the education finance sector.

With these rich resources available and ready, we provide schools and MATs with bespoke solutions catering to a wide range of financial concerns. Whether you need effective risk management or assistance in generating tax due diligence reports and financial due diligence reports, we're here to assist you every step of the way.

We're also here to help grow MATs and offer support in due diligence, HR, and internal scrutiny processes.