An educational firm gets financial sources from various ways like donations from the government, students’ tuition fees, and a grant-in-aid from NGOs, etc. However, income source of an academic institute does fluctuate from time to time.
Often, schools and colleges face crunchy situation due to the paucity of funds. This mainly happens when such institute either undertakes social projects or buys many things resulting in lack of necessary funds in their hands.
To manage an institute’s inadequate financial resources, the astute use of monetory knowledge becomes imperative for the firm.
The latest study on the educational trends has confirmed that 70% of the institutes seriously face financial crunch due to expansion.
Once an educational organization wants to expand its operation, then it is bound to face a paucity of the fund.
Here are some useful tips to manage the inadequate budgetary resources at a school or college.
1) Different Sources of Income: Apart from the regular sources of income of the institute as mentioned above, any varsity or college should also invest a sufficient amount of money in financial companies with fixed returns.
They can invest in equity market or bond market to get income in needy circumstances when primary sources of income generation are not enough.
The latest survey claimed that 90% of the educational organizations have admitted that they have to earmark a considerable amount of money for social media operation, which raises their budgets these days.
2) Prudent Use of Financial Resources: Only the experienced and skilled accountant should spend money for important purposes only.
In times of financial crunch, only they should manage the entire financial aspect of the office. The judicious use of funds is of utmost need in such times.
3) Staff Retrenchment at the institution: Though such things are difficult from the human angle, considering the paucity of funds, a varsity can choose the retrenchment mode to reduce unnecessary staffs. It could save a lot of money.
4) Utilize Applicable and Relevant Software: The use of high-quality tools at office and institutes is very important. In fact, most of the pupils and their guardians demand the use of ultra-sophisticated technological devices at classes for the convenience of students.
In reality, the latest survey has claimed that around 80% of the students felt that all educational associations should necessarily use technological equipment for student’s convenience.
5) Necessary Directive from the Top Management: Another important tip of proper financial management in times of low income is to “expend” money only on required things and avoid wherever not urgent.
Case Study
A premiere MBA coaching institute was following downward trends and swift decline in its income generation capacity. The organization has a team of around 17 support staffs but just nine of them were efficient.
As a part of its cost-cutting measure, soon the institute removed around eight staffs from its office. In addition, the organization’s contact center work was now opened 24-hour a day. Telecallers use the advanced call center software to ensure that all calls listen carefully.
The opening up of a separate call center for students was a good idea. It enhances the credibility of the firm as many new students started taking admission into the institute.
The accountant, on his part, manages the financial resources of the firm in a very cautious and judicious manner.
The enrollment of new students was a positive sign for the institute, but keeping such a humongous amount of data within the system was challenging too.
The principal directed the IT head to install the best call center software for proper record-keeping and safe protection of data into the system.
After a couple of months of financial crunch, the firm started getting some good return, thanks to the optimum utilization of the call center solutions.
Now, it is no secret that “technology” is thousand times better than incapable staffs. The integration of the entire office with wi-fi and high-quality call center software solutions was the apt decision.
The institute also installed the latest online call center software to keep the admission and examination data of the students safely in a single folder automatically without asking a computer operator to manually do so.
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