Top spend management tips for schools

Budgeting is one of the biggest challenges most school leaders face today. Michael Barber, Head of Global Marketing at Grow Schools, recently sat down with Stanton Jandrell, CEO of Fraxion, to discuss how schools can optimize spend management to navigate these financial pressures. From streamlining processes and reducing operational expenses to ensuring funding, effective spend management plays a crucial role in maintaining financial health and supporting educational success. Let’s dive into some key insights on how schools can better manage their spending.

Prioritizing spending for essential school programs

How can schools ensure that essential programs and projects remain fully funded?

Stanton Jandrell: “This is one of the most critical aspects of financial planning for schools.” 

Five key strategies for school budgeting and prioritization:

1. Identify and categorize expenses

Schools should categorize spending into specific projects and programs, each with a clear budget. If possible, break budgets into phases for better tracking of spending over time.

2. Track spending against goals

Without identifying and monitoring expenses, it becomes difficult to measure financial performance. Allocating spending to specific cost drivers - such as a project, program, or phase - ensures better financial oversight.

3. Stakeholder communication

Regular reports should be provided to key stakeholders, including project managers, boards, and donors. Transparency is essential, especially when managing restricted funds.

4. Real-time visibility

School leaders need real-time visibility into financial data to understand the impact of their decisions before approving spending. This includes assessing financial commitments and ensuring alignment with budget limits.

5. Project reviews & learnings

After completing a project, schools should conduct a postmortem analysis to evaluate what worked well, identify challenges, and extract key lessons for future projects. This continuous learning process helps refine budgeting and spend management strategies.

The role of automation in school budgeting and cost control

Why is automating spend management so important for schools?

Stanton Jandrell: “Financial stability in schools depends on controlling costs and optimizing spend. One of the best ways to achieve this is through automation.”

Four key benefits of automated spend management

• End-to-end process automation: From requesting funds to approval and payment, automation ensures a smooth and efficient workflow.
• Budget control at every step: Decision-makers can see the real-time budget impact before approving expenses, helping to track spending against financial goals.
• Data-driven insights & benchmarking: Community Insights technology allows schools to compare their spending efficiency with others. Schools can benchmark process efficiency, pricing trends, and resource allocation to improve financial decision-making.
• Better financial oversight: Automation ensures that restricted funds, donations, and grants are properly tracked, while also providing transparent spend reporting for external funders.

Automating spend management eliminates manual errors, improves efficiency, and enhances financial stability. It allows school leaders to make informed spending decisions in real-time rather than relying on outdated, manual reporting.

Effective cost-saving strategies schools often miss

What areas do schools often miss when trying to cut costs?

Stanton Jandrell: “Schools, especially charter schools, often have limited spending power, making it difficult to leverage bulk purchasing. However, there are still opportunities to save.”

• Vendor consolidation & bulk purchasing: Schools can reduce costs by consolidating purchases across departments to negotiate better pricing with vendors.
• Process efficiency improvements: Reducing manual paperwork and automating workflows helps save time and lower labor costs, improving overall procurement efficiency.
• Better contract management: Regularly reviewing vendor contracts and service agreements ensures that schools are getting the best value and cost efficiency from their suppliers.
• Technology-driven savings: Implementing spend management software helps schools maintain budget alignment, gain real-time spending visibility, and improve financial planning.

Take the first step toward smarter school spending with Fraxion

Effective spend management is essential for schools to build financial resilience and support their educational mission. By prioritizing clear budgeting, fostering transparency, and embracing automation, school leaders can ensure that every dollar is spent wisely and in alignment with their goals. Leveraging data insights further strengthens financial decision-making and opens up opportunities for cost-saving.

As school budgets continue to be stretched, exploring spend management solutions is more important than ever to streamline processes, improve efficiency, and secure a stable financial future.

Implementing a spend management tool is a significant step, but selecting the right software can drive efficiencies and cost savings, ultimately improving your school's financial outcomes. Fraxion is here to help make that process easier.

Book a call with Fraxion today.  See how Fraxion can help your school save more, spend smarter, and plan with confidence.