Five overlooked School bookkeeping mistakes

In finance, bookkeeping is the task of recording and storing records from financial transactions. This is a very important business management process towards the realization of a goal. Schools often need a reliable and efficient bookkeeping system to free them from problems in the future. A good school bookkeeping system helps in providing efficient servicing for tuition payers. It also provides an advantageous means of monitoring a student’s tuition records.

It’s easy to determine a successful school bookkeeping system. It’s also very easy to identify a dysfunctional bookkeeping system. Schools quite often experience massive loss of money, time and other resources when a bookkeeping system fails.

Lacking knowledge about the right processes
School Bookkeeping is not simple as it seems. Many educational institutions often neglect taking steps to learn the useful facts and knowledge on how to efficiently implement a bookkeeping system. It’s best that school administrators hire credible consultants to provide them with the right information needed.

Relying in old bookkeeping principles
Another mistake institutions commit is following old and outdated bookkeeping principles. These principles were not effective enough to reduce discrepancy and problems. Quite often these obsolete principles are susceptible to factors that can lead to financial monitoring issues.

Poor organization and wrong categorization
Another overlooked school bookkeeping mistake many institution commit is they have a poorly organized record keeping system. A highly organized records is often properly categorized and sorted.

Neglect recording small amount transactions
Unrecorded transactions that involves small amounts of money may accumulate over time and cause a huge discrepancy during the audit. It’s advisable to record every single transaction even if the financial transaction is very small.

Storing hard-copy of records in damage prone areas
Some elements like water and parasites can severely damage hard records. Some schools forgot to protect the hard-copy of files from these elements thus resulting to permanent loss of records.