Academies will benefit from innovative and robust financial advice

More and more local authority schools are converting to academies – according to the Department for Education they now make up more than a fifth of all secondary schools – and while the upside is that an academy has greater autonomy, the governing body and management team will be in need of expert financial advice to ensure a smooth transition and effective year-end reporting.

The academies that we have been working with are preparing audited statutory accounts for the first time and have welcomed the strategic advice that we provide in addition to the specific guidance that is needed on the content of the Annual Report and Accounts (ARA).

Clearly regulations have to be met, but the change in status presents a perfect opportunity to review current financial processes and establish innovative and robust systems for the future.

We take a pro-active approach to advice with regard to developments in the sector, helping to identify innovative ways for the new academy to generate income, and presenting ideas so that the ARA is ‘user-friendly’ and readily accessible to the general public so that it can be utilised as an effective reporting and marketing tool.

It’s not just a question of the day-to-day processing of income and expenditure: an academy needs a finance and IT system and business IT solution that can deal with a whole raft of activities, including the production of management accounts, cash flow forecasts, balance sheets, VAT and tax compliance issues.

At Clement Keys, we have specialists in all areas so we can offer advice on key topics such as pensions and VAT.

Academies have to undergo a statutory audit and arrange an audit of pension returns – both to the Teachers’ Pension Fund and any local government schemes to which non-teaching staff belong – our experience in the education sector helps us respond to individual establishment’s needs.

We also have experienced tax and VAT advisors that can advise on liability to VAT and partial exemption as well as perform ad hoc assignments, such as reviewing the use of trading subsidiaries.