Financial risk is an unavoidable part of running any school. Unexpected expenses, changes in funding, or compliance challenges can have a significant impact if not identified and managed early. Proactively managing these risks is key to protecting your school’s financial sustainability and ensuring your resources remain focused on students’ learning and wellbeing. The following key areas outline practical steps schools can take to identify, manage, and reduce financial risk in a structured and effective way. 1. Identify Key Financial Risks: Understanding where your school may be exposed is the first step. Common risks include: Dependence on a single or limited funding source Budget overruns or inaccurate forecasting Cashflow pressures during the year Fraud, error, or misuse of funds Non-compliance with reporting or audit requirements Regular review by the Board and finance team helps ensure potential issues are identified early. 2. Budgeting and Forecasting: A realistic, well-planned budget is one of the most effective tools for managing financial risk. Reviewing actual results against your budget throughout the year highlights discrepancies early, allowing you to take corrective action before problems escalate. Scenario planning, such as modelling the impact of reduced funding or unexpected costs, can help you prepare for uncertainty. 3. Cashflow Management and Reserves: Monitoring cashflow ensures that you can meet your obligations at all times. Maintaining adequate reserves provides a buffer against unexpected costs or delays in funding, helping your school operate smoothly even during challenging periods. 4. Internal Controls: Strong internal controls reduce the risk of error, fraud, and mismanagement. Key practices include: Clear delegation of financial authority Separation of duties for approvals and payments Regular reconciliation and review processes Transparent reporting to the Board Documented policies and procedures also help maintain consistency, particularly during staff changes. 5. Compliance and Reporting: Staying up to date with Ministry requirements, audit obligations, and other regulatory changes is essential. Accurate and timely reporting not only ensures compliance but also supports informed decision-making by your Board. 6. Planning for Uncertainty: Embedding risk awareness into everyday financial practices prepares you for unexpected events. Scenario planning, regular review of policies, and maintaining contingency funds all help reduce surprises and enable confident decision-making. Managing financial risk is a core part of good school governance. By identifying risks early, maintaining strong controls, and planning for uncertainty, you can protect your school’s financial position and continue focusing on providing high-quality education for your students.

At the start of the school year, it’s a good idea to review your repeating bills in Xero to ensure they’re still accurate and up to date. Repeating bills are often created once and then left running in the background. Over time, amounts may change, services may no longer be required, or accounts may need updating. If they aren't reviewed, outdated repeating bills can lead to incorrect expenses and inaccurate reporting early in the year. Taking a few minutes now to check your repeating bills helps keep your financial information accurate and reduces the need for corrections later. For those who need a reminder, you can find your repeating bills under Purchases > Bills > Repeating and update or stop any that are no longer needed.

The annual audit is a vital part of your school’s financial oversight - it's not just a compliance exercise, but a chance to strengthen governance and support informed decision-making. With audits for the 2025 financial year starting now, boards and school leadership can take proactive steps to ensure they are ready to make the most of the audit process and the findings when they arrive. Below are five key considerations for boards and school leadership ahead of the audit. 1. Understand the audit process: Familiarise yourself with how the audit is conducted and the areas auditors focus on, such as internal controls, reporting, and compliance processes. Knowing what to expect now helps leadership interpret findings efficiently once the audit report is issued. 2. Plan for review and discussion: Decide how the board or finance committee will assess audit recommendations. Setting up a clear process ahead of time ensures that your school can respond quickly and confidently when the report is received. 3. Consider key focus areas: Even before feedback arrives, review potential areas for improvement in your school’s financial practices. Thinking ahead about internal controls, reporting, and oversight processes makes it easier to act on audit recommendations efficiently. 4. Prepare to track and implement recommendations: Have a system ready to assign responsibilities, set timelines, and monitor progress once audit findings are available. This ensures that improvements are applied consistently and effectively. 5. Strengthen governance and transparency: Being proactive now reinforces confidence among leadership, staff, and the board. Using the audit as a tool for strategic oversight ensures your school’s finances are well-managed and prepared for future planning. By taking these steps early, boards and leadership can turn the audit into a tool for learning, improvement, and stronger governance, rather than just a compliance exercise. Preparing now ensures your school is ready to act effectively once audit feedback arrives in March.

Did you know you don’t have to manually calculate due dates for each invoice? Here’s an easy Xero tip that many users overlook, but once you start using it, you’ll wonder how you ever lived without it. When you’re entering a due date on an invoice, you don’t need to stop and calculate the exact date based on your payment terms. Instead, Xero allows you to use quick shorthand to do the work for you. Simply type shortcuts like “+7” , “+14” , or “+30” into the Due Date field, and Xero will automatically convert that into the correct calendar date. This is especially helpful if you work with different payment terms for different suppliers or if you’re batching a large number of invoices at once.

View our Chalkboard - January 2026: - Welcome back to Term 1, 2026! - 2025 Annual Accounts - Important Notices - Xero Tip of the Month: Save Time With Xero’s Invoice Due Date Shortcuts - Preparing to Make the Most of Your Audit Feedback - Looking ahead https://public2.bomamarketing.com/email/WLK4

Back in September, we announced that Xero was working on a refreshed navigation and homepage (formerly the Dashboard) to deliver a faster, cleaner, and more intuitive experience. With the navigation changes now live, Xero is moving to the next major update: the fully redesigned homepage. The new homepage is being introduced organisation by organisation over the coming months and will continue through to March 2026, so you may begin to see the updated layout appearing soon. Here’s what’s new in the homepage refresh: More meaningful insights: Xero has upgraded existing widgets and introduced new ones such as tasks, recently paid invoices, and net profit/loss - giving you important financial information at a glance. Customise your layout your way: You’ll be able to drag, drop, resize and reorder widgets so your homepage reflects what matters most to you. Your layout is unique to your login and won’t affect anyone else in your business. Time to adjust: If you’re not quite ready for the new look, you can temporarily switch back to the old dashboard for up to 24 hours before Xero automatically returns you to the new layout - giving everyone the chance to ease in. As always, if you have any questions or would like help navigating the changes, please don’t hesitate to call our team on 04 909 7729 . We’re here to support you. If you’d like to learn more about these upcoming changes, Xero has recently shared a helpful overview, which you can access by clicking HERE .

View our Chalkboard - December 2025: - Merry Christmas & AFS Out-Of-Office Dates - Reminder: 2025 Annual Accounts Preparation - Important Notices - End of Year Preparations: Are You on Track? - Xero Tip of the Month: Xero’s New Homepage Refresh Coming Soon! - Looking ahead https://public2.bomamarketing.com/email/QyaD

School administrators play a critical role in keeping schools running smoothly, but the financial responsibilities that come with the role can be a major source of stress. From budgeting and payroll to compliance and reporting, the pressure to get it right can feel overwhelming. Understanding what triggers your financial stress is the first step. Common stressors include tight budgets, unexpected expenses and juggling multiple financial priorities at once. The good news is that with a few simple strategies (and ongoing support from AFS), you can regain a sense of control and calm. Below, we have put together some practical strategies to help reduce financial stress: 1. Plan Ahead: Regularly forecasting cash flow and reviewing your budget with your leadership team helps spot potential shortfalls before they become urgent. Keep Ministry of Education funding schedules and reporting deadlines on your radar to avoid surprises. 2. Leverage Technology: Using apps and automated tools can help reduce financial stress by saving you time, improving accuracy, and making everyday processes more efficient. If you’re not sure where to begin, we can help assess your current systems and recommend tools that best fit your school’s needs. Note: Our new app (mentioned in our November Chalkboard ) automates the process of downloading your reports from Pourato and the Secure Data Portal. 3. Prioritise Tasks: Break down large financial responsibilities into manageable steps. Focus on urgent and high-impact items first. A clear plan can make even complex projects feel more achievable. 4. Invest in Self-Care: Taking breaks, setting realistic expectations, and maintaining a healthy work-life balance can help you stay resilient. Looking after your well-being ensures you can continue supporting your team and your school effectively. 5. Seek Support: Whether you need extra assistance with your annual budget or hands-on help with monthly reconciliations, reaching out to us early can prevent bigger problems down the road. As your trusted finance partner, we’re here to guide you through these challenges with confidence and ease. Reducing financial stress doesn’t just benefit administrators - it strengthens the entire school. A calm, well-organised finance team leads to more accurate reporting, better budgeting decisions, and ultimately, a stronger learning environment for students.