The Expense Blind Spot
Schools typically track fee income carefully because it is a receivable. But expenses are often tracked through bank statements after the fact, which means overspending is discovered weeks after it happens.
Expense Categories That Matter
Define categories at the start of the year: salaries, utilities, maintenance, teaching supplies, exam materials, transport, events, marketing, and administration.
Approval Workflows
Every expense above 2000 rupees should require approval. An approval step creates a natural pause for asking whether this is necessary.
Monthly Budget vs Actual
Set a monthly budget for each category. Review actual vs budget at the end of every month. Categories that consistently overshoot need a root cause discussion.
The Petty Cash Trap
Untracked petty cash accumulates into significant unaccounted expense over a year. Even small expenses should have a receipt and a record.
Capital vs Revenue
Distinguish between capital expenses and revenue expenses. They need different approval thresholds and accounting treatment.