It avoids the confusion and chaos while involved in day to day operations and expenses. The process of creating a budget gives a birds eye view to the leadership about the academic year ahead. It also makes you aware of how the money is being spent and the value derived from each of those transactions. It forecasts and track how the money is being spent and saved by being intentional about each transaction. By creating and maintaining a budget for multiple years, the school leadership can understand the spending and income patterns to plan for the present academic year properly and achieve the goals.Ī well planned budget helps the school by giving control on the way it spends money. What is a budget? Why schools need it?Ī budget translated the vision and missions of school to annual plans by mapping the resources against the yearly goals and comparing the income and expense trends of past, present and future. And this expenditure will be tightly controlled by policies and instructions from government and other governing bodies. This brings a challenge to school because they have less than 20% of the budget available for other innovations and improvements. One major difference of schools’ budget from other organizations is that the majority of a school budget expenditure(80%+) will be on personnel and benefits while for other organizations it will be less than 50%. Or they simply follow the patterns of the past academic years without planning a budget. Schools usually follow instructions from the government who funds the schools partially or completely. While budgeting is a common phrase used in all sectors including organizations, states and countries, a budget for schools is not practiced rigorously in most of the schools.
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