Putting together a realistic, workable budget is probably a charter school’s most important financial responsibility, and one of BPI’s most critical services to its clients.
Creating the Budget
A well-crafted budget is a major task, and virtually impossible to do without prior experience in the field. Charter schools in Indiana are different than other types of entities in that applicable law and rules from the Indiana Department of Education (DOE), State Board of Accounts (SBOA), and the school’s authorizer must be successfully addressed in any budget.
Properly estimating revenue and expenditures starts with identifying possible revenue sources and estimating the dollar amounts. Next, you need a broad knowledge of the different types of expenses to expect. In this regard, you must be able to distinguish between fixed and variable expenses, and the extent to which the latter is actually subject to modification efforts.
Bookkeeping Plus works to help school management implement strategies for keeping operating expenses under control, and to recognize in which areas they have the flexibility to use managerial discretion.
Operating within Budget Guidelines
Throughout the year, BPI assists the school in staying within the budget guidelines, and provides Budget-to-Actual reports. We also work with the client to project cash needs and manage bank account balances. In regard to cash flow, sometimes timing is everything, and is often the hardest to affect. That is where BPI’s experience makes a difference.
Click here to read about our other areas of Charter School Accounting services.